Can I Sell My House With a Charging Order?
If you’re trying to sell your house and you’ve been hit with a charging order, you’re in plenty of company. But just because lots of people are in this position, it doesn’t make it any easier, especially when you’re already dealing with debt.
But here’s the good news: it’s not the end of the road. You can sell a house with a charging order on it. You just need to understand the rules, know your options and get a clear plan in place. And luckily for you, this blog breaks it all down.
What is a charging order?
A charging order is a legal arrangement that allows a creditor to secure a debt against your property. It usually follows a County Court Judgment (CCJ), and it means your debt is “charged” to your home, similar to how a mortgage works.
The court issues the charging order to make sure the creditor gets their money when the property is sold. So the order doesn’t mean you have to sell straight away, but it does mean you can’t just sell the house and walk off with all the profit. The creditor has a stake in it now.
When does a charging order happen?
It typically goes like this:
- You owe someone money and miss payments
- They take you to court and get a CCJ
- If the CCJ isn’t paid, they apply for a charging order
Once the court agrees, the order is registered with the Land Registry. That way, it’s officially tied to your property.
You might not even live in the house. Charging orders can be attached to any property you own, even if it’s rented out or a second home.
Does a charging order stop me from selling?
No, but it does make things more complicated.
You can still sell your house, but the charging order must be paid from the proceeds of the sale. That means the creditor gets their money before you do.
So the question becomes: will there be enough money left after your mortgage, fees and the charging order are all paid off? If so, then you’re good to go.
Will I need permission to sell?
Technically, no. A charging order doesn’t stop you from putting your house on the market.
But you do need to let your solicitor know about it, and they’ll need to include the debt in the sale paperwork. You can’t just ignore it and hope it disappears. If you try to sell without settling the order, the transaction won’t go through.
In some cases, the creditor might ask the court for an order for sale, which forces you to sell the property. That’s more extreme, and usually happens if you’re ignoring the debt entirely.
Can I sell if I’m in negative equity?
This is where things can get sticky. If your house is worth less than the mortgage plus the charging order, selling might not be possible without agreement from your lender and the creditor.
Lenders are unlikely to let you sell at a loss unless you can make up the difference. Creditors don’t always agree to accept a reduced payment either.
That said, there are exceptions. In some cases, creditors will negotiate a settlement or accept a partial payment. You’ll need professional advice if you’re in this situation.
What happens to the charging order after sale?
It gets paid off and removed. Once your solicitor receives the sale funds, they’ll:
- Pay the mortgage lender
- Pay the charging order debt
- Pay any fees or other obligations
- Send you the remaining balance
Once the creditor has been paid, the solicitor will notify the Land Registry and the charge will be removed from the records.
What if I have more than one charging order?
The process is the same, but the order in which debts are paid matters. The mortgage always comes first, followed by the charging orders in the order they were registered.
This means that if there’s not enough money to go around, some creditors might not get paid in full. In that case, the sale might not go ahead unless you can top up the shortfall yourself.
Can I negotiate with the creditor?
Yes. In many cases, creditors are open to discussion. Especially if:
- You’re actively trying to sell
- You’ve made some payments
- There’s not enough equity to pay the full debt
You might be able to agree a reduced settlement or payment plan. The creditor isn’t legally required to agree, but it’s often in their interest to recover some of the money rather than nothing at all.
You can negotiate yourself, but if the amount is large or the creditor is uncooperative, you might want help from a solicitor or debt adviser.
Will it affect my credit file?
Yes, unfortunately. The CCJ and any missed payments will stay on your credit file for six years. The charging order itself isn’t listed on your credit file, but lenders will see the CCJ and any evidence of debt.
That can make it harder to get a mortgage, loan or even certain jobs.
Can I remortgage instead of selling?
It depends on your credit and the value of your home. A charging order makes it much harder to remortgage, especially with a mainstream lender.
If you have enough equity and a decent credit score, you might be able to remortgage with a specialist lender and use the funds to pay off the debt.
But be careful. Some high-interest products can leave you worse off in the long run. Always check with a regulated mortgage adviser before signing anything.
Where to get help
If you’re feeling overwhelmed, you’re not alone. Dealing with charging orders can feel like a lot, especially if you’re also trying to sell your home.
Start by speaking to a debt charity like StepChange or checking guidance on GOV.UK. You can also speak to Citizens Advice or a solicitor to understand your legal position.
And if you’re thinking about selling, it’s worth getting your property valued so you can work out what you’re dealing with.
Ready to move on?
Selling a house with a charging order isn’t impossible. It just takes a bit of planning and the right support.
If you need a fast, simple sale and want the peace of mind that your debts will be cleared in the process, we can help.
At Sell House Fast, we:
- Buy homes in any condition, anywhere in the UK
- A fast house sale, usually in a matter of days
- Handle all the paperwork for you
- Cover your legal fees
- Work to your timeline
We’ve helped hundreds of people move on from debt and start fresh. No agents. No stress. Just a clear, guaranteed sale with no hidden fees.
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