Can I Sell My House With a Charging Order?

Selling a house can be a stressful and complicated process at the best of times. This becomes a whole different matter if you have a charging order or County Court Judgment (CCJ) attached to your property. Taking proactive steps to understand what these legal orders mean and address the situation quickly can help relieve stress in the long run. In this guide, we’ll explore what charging orders and CCJs are, how they can impact your ability to sell your property, and what options you have to manage or resolve these issues effectively.

What is a charging order?

A charging order is a legal order that allows a creditor (someone you owe money to) to place a claim on your property if you can’t pay your debt. If the creditor applies for a charging order and the court agrees, it is registered with the Land Registry, which records the debt against your property. If you sell your home, the creditor can take the amount you owe from the sale proceeds before you receive anything. 

For example, if you owe £50,000 and sell your property for £200,000, the creditor will take £50,000, and you’ll get the remaining amount. This can make selling your home more difficult and might lower the amount of money you get from the sale.

There are different types of charging orders:

Final charging order

A final charging order is a court order that allows a creditor to enforce the recovery of a debt from your property or land. If you don’t pay, the creditor can then ask the court for an order to sell, allowing them to sell your property to pay off the debt. This is usually a last resort, after other methods of debt recovery have failed. Before the final charging order, the creditor might apply for an interim charging order to secure the debt.

Interim charging order

An interim charging order is a temporary court order that freezes a debtor’s assets, such as their property, while the court decides how to handle the debt. This order prevents the debtor from selling or transferring ownership of their property until a final decision is made, either by granting a final charging order or repaying the debt fully. As a result, having an interim charging order can make it difficult to sell your property, as it temporarily blocks the ability to complete the sale until the issue with the debt is resolved.

What is a County Court Judgement (CCJ)?

A County Court Judgment (CCJ) is a legal order in England and Wales that requires you to repay a debt. It happens when you fail to pay a debt, and the creditor takes you to court. A CCJ is used for debts between £600 and £5,000 and is typically a last resort after attempts to settle the matter without court action have failed. If you get a CCJ, it can make it harder for you to get credit in the future, as it shows you’ve been legally ordered to repay a debt.

Do I need to sell if there is a charging order on my house?

A charging order is a legal claim on your property by a creditor, but it doesn’t mean you have to sell your home. However, if you do decide to sell, the creditor must be paid first from the sale proceeds, up to the amount you owe. Essentially, the charging order ensures that the creditor receives the debt owed to them before you get any money from the sale of the property.

Can I sell my house with a charging order?

Yes, you can sell a house with a charging order, but it can be more complicated and take longer than a regular sale. When you sell, the money from the sale has to first be used to pay off the debt you owe to the creditor. This means the process takes more time because the money from the house does not go straight to you first. 

Selling your house with a charging order

Selling a house with a charging order or CCJ can be tricky, but it’s still possible. While it may take slightly longer depending on the route you take, you can sell your property and use the proceeds to pay off your debts. Once the debt is cleared, you’ll be free to move on and start fresh. The key is to stay positive, take action, and get the right support to resolve the situation.

Steps for selling your house the traditional route

• Get a property valuation: Have a professional assess how much your house is worth and how much equity you have.
• Talk to your creditor: Contact the creditor who placed the charging order or CCJ on your property. Let them know you plan to sell, and ask if they’ll work with you on a payment plan or settle the debt to remove the legal claim.
• Seek legal advice: A lawyer can guide you through the process and make sure the sale is carried out legally.
• Be upfront with buyers: Inform potential buyers about the charging order or CCJ. Buyers will want to know why you are selling your property.
• Be flexible on price: You may need to lower your asking price because of the charging order or CCJ, so be ready to negotiate with buyers.
• Prepare your paperwork: Have all necessary documents ready, including paperwork about the charging order or CCJ, to speed up the sale.
• Stage your home: Consider hiring a professional to stage your home. A well-presented home can help it sell faster and for a better price.

How to sell your house fast

At SellHouseFast.uk, we understand that life’s circumstances can change suddenly, making a quick house sale essential. If you’re dealing with financial difficulties, we’re here to offer a solution that’s both quick and straightforward. Our cash house buyer service enables you to sell your house as is for cash, giving you the freedom to move forward with certainty and peace of mind. 

With a process that’s clear and transparent, and the ability to complete sales as fast as you require, you can trust us to handle your sale efficiently and professionally. Plus, we buy any house in any condition, ensuring a swift sale. You won’t have to fret about financing falling through or deal with drawn-out negotiations. Get your free cash offer or call us on 0800 098 3789.