Charging Order - selling jointly owned house

[Ladyinthered]

I’m currently in the process of selling my home that I jointly own with my (ex)husband. My husband and I are in the process of finalising our divorce (we’ve been separated and lived separately for 4 years). We’ve agreed to settle everything outside of court. We’re civilized, respectable and fair to one another. I’m restricted medically so my husband agreed for me to remain in the family home, however we both agreed 6 months ago that we’d sell up and split the monies.

The conveyancer working on my behalf identified two Charging Orders restricting the sale of the property. Both charging orders relate to debt that was taken out back in 2014 with my business partner. Around £35k with one creditor, and £40k with another - signed to my name and my business partner. This debt was never paid due to me being excluded from my own business by my business partner - I lost everything. I won a PART-20 claim in court which indemnified me for the amount owed however both creditors put charging orders on my home.


Now almost 9 years later the solicitor representing one of the creditors is demanding I pay the full amount (full original debt + interest) which is around £70k. This would leave me with £0 post sale and with only one creditor paid off. They stated that once the debt is paid the Charging Order will be lifted off MY property AND my old business partners property, who I have absolutely nothing to do with and who I have various harassment reports on. Ultimately it would clear his debt too.

I’m currently on PIP, and I receive universal credit due to being medically restricted at work. Selling this house and subsequently coming out with no financial gain would mean I’d have absolutely nothing to my name. I have no personal assets, and no savings. All I have is my half of this property. I don’t make enough money to be able to privately rent either and have nothing else to give.


I feel like I’m drowning. I’m in my most vulnerable state and it feels like they’re wanting to take everything off me. They’ve received no communication from my old business partner, and subsequently been unable to collect any monies off him.

If I was to cancel this sale and refuse to sell - what would be the implications?

If the courts did order sale of the property - could they do this considering it would seriously jeopardize my future (medically)?

Is there any loop in the system which allows me to negotiate, or wipe some of this debt?

I don’t mind paying some of the debt, however I feel given the circumstances paying the FULL debt off (and clearing his name too) seems unfair.

[atticus]

can you please post the wording of the restriction in respect of this charging order on your Land Registry title document.

[Ladyinthered]

can you please post the wording of the restriction in respect of this charging order on your Land Registry title document.

RESTRICTION: No disposition of the registered estate, other than a disposition by the proprietor of any registered charge registered before the entry of this restriction, is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to XXXXX at XXXXX and care of XXXXXXX, being the person with the benefit of an interim charging order on the beneficial interest of XXXXX made by the County Court Money Claims Centre on XX August 2017 (Court reference XXXXXXX)).

[atticus]

Read that wording carefully. It tells you what needs to be done. You will observe that it does not require any payment to be made.

[islandgirl]

When this is done atticus can the person who is given notice then object to the sale and demand payment?

[Ladyinthered]

Can the creditor prevent me selling the property though, and will these restrictions remain once the new buyers legally take over the property?

[atticus]

Read the words! The person applying to register a transfer needs to notify the creditor. That is all. These charging orders are virtually worthless to a judgement creditor.

[islandgirl]

Yes I got that thank you - so once that is done that is it? Fascinating

[atticus]

The judgement will of course stand, and can still be enforced against the judgement debtor.

[Worryworm21]

islandgirl I had 2 restrictions on my jointly owned property and my sale went through last month without settling anything. The key is finding a solicitor who understands the difference between a charge and restriction. We had to change as our first insisted they were settled but our second one was brilliant and understood the requirements. Good luck with your sale

[islandgirl]

Thank you for the update - glad it worked for you