Introduction
Debts subject to a court judgment or liability order can be secured by a charging order on the your property.
A charging order is a court order which imposes a charge on the freehold or leasehold property of a debtor in order to secure payment of a debt. The charge is registered with the Land Registry.
Who can apply for a charging order
A creditor who has obtained a money judgment or a liability order can apply for a charging order following the procedure in Civil Procedure Rule (CPR) Part 73 and Practice Direction (PD) 73.
The application may be made without notice. This means you may not receive any notification of the creditor’s intention to apply for a charging order. The first notification may come in the form of a restriction notice from the Land Registry.
Interim and final charging orders
The charging order application will initially be dealt with by a court officer without a hearing. If the court is satisfied with the application, it issues an interim charging order on Form N86.
The interim charging order is visible as a restriction on the Land Registry to warn potential purchasers that there may be another party with an interest in the land.
If no objections are filed at this stage the court makes a final charging order
If the order is granted
If the court grants a charging order the unsecured debt becomes secured. This means the debt is converted from a non-priority debt into a priority debt, because your home is at risk if the debt is not paid. The creditor may use another enforcement method at the same time.
Disputing the application
You can dispute liability for the debt by making an application to set aside the underlying judgment debt or liability order. The court may be willing to grant an adjournment of the charging order proceedings if you have a reasonable prospect of success. The court cannot allow an application to set aside the charging order if the underlying judgment debt is sound.
You can object to the final charging order, the court has discretion whether or not to make a final charging order. However, the burden of proof is on you to show good reasons for not making the order. You must file written evidence and serve a copy on the creditor within 28 days of service of the interim order.
If a hearing is required the court may transfer the application to the judgment your home court to consider whether to make a final charging order. The court must serve notice of the hearing on the judgment creditor and everyone served with the interim charging order.
When considering whether to grant the charging order, the court must consider all relevant circumstances, in particular:
- the personal circumstances of the debtor, including their household composition, income details and any change of circumstances, and
- whether any other creditor would be prejudiced by the making of the order
If you want to make an offer of payment you must follow the procedure for objecting to the charging order. This prevents enforcement by order for sale.
A financial statement should be attached to the written evidence to demonstrate your ability to make the payments. A court order setting payments also prevents any statutory interest being added to the debt, if applicable.
Application to vary or discharge the order
After the charging order has been granted you can make an application to vary the order (if you have an interest in the property to which the order relates, for example someone with a financial investment or a right of occupation.) The application is made to the court that made the charging order.
If you have paid the judgment debt in full, you can make an application for a certificate of satisfaction on form N443. The application should include evidence of payment where it is available. If the creditor objects to the issue of the certificate, a hearing will take place your local court.
Last Updated on June 10, 2026 by Ashford Advice