If the debtor owns a property, then an application can be made for a Charge to be registered. Once the Charge is registered, future purchasers of that property will be aware of your interest and in most cases will insist that you are paid from the sale proceeds. The law is not particularly clear and if you require further information on this, please ask your file handler. When an application is made, no notice is given to the debtor (so that they cannot rush through a sale of the property).
An application will initially be considered by a Court Officer and if it meets the prescribed criteria (which in most straightforward matters it will), the Court will make an Interim Charge. If the application does not meet the prescribed criteria then the application will be referred to a Judge for consideration and the Court can either make an Interim Charge and/or transfer the matter to the Debtor’s home court for a hearing.
If an Interim Charge is made by the Court this will be registered at the Land Registry. The Debtor and any other interested party of the Debtor’s property will then normally have 28 days from service of the Interim Charge to file their objections to the application. If an objection is received then the application will be referred to a Judge and a hearing may be take place at the Debtor’s local court to determine the application. However, if no objections are received then the Court may make a Final Charging Order, discharge or modify it without the need to incur the costs of attending a hearing.
In some circumstances, a Charge holder where the Judgment is over £1,000 may apply to the court for an order that the property be sold. Again, please ask for more information.
£450 + VAT (£110 recoverable if successful)
£110 (recoverable if successful)
Land Registry fees:
£23 – 43 (recoverable if successful)
If the application is opposed then your file handler will provide you with an estimate of further costs based upon the nature of the objection(s)
Approximately 2 weeks for Interim Order and 10 to 12 weeks for Final Order
This is the best method when a debtor genuinely cannot satisfy a debt immediately. It gives you security and a growing property market means it is more likely that there will at least be some equity to satisfy some or all of your debt if the property is sold or re-mortgaged.
Provides long term security rather than short term payment. The security will only be effective if there is sufficient equity in the property – your Charge will rank behind any prior Charges.
If a property is jointly owned, and you only have judgment against one owner, then all the Charge entitles you to is notification of a sale.