Winning a court case does not always mean receiving your money. If the person ordered to pay fails to do so, you may need to take further steps to enforce the judgment. Where that person owns a property, one option is to apply for a charging order.
But does this mean their home will be sold? And what happens if there is already a mortgage?
A recent High Court decision, Khan v David [2026] EWHC 2554 (KB), provides a useful starting point.
Written by Frankie Ng, Litigation Supervisor
What happened in the case?
Ms Khan was enforcing an American judgment through proceedings in England and Wales. She had obtained an English judgment requiring Mr David to pay approximately US$14.9 million, together with costs.
She applied for a charging order over his interest in a London property. Mr David raised objections, including that the property was his only home and that he had a disability. Another creditor claimed to hold earlier charges over the property.
The court made a final charging order. It explained that the disputed priority of the other creditor’s charges did not prevent that order being made. It also said that the home and disability issues could be considered on any later application for sale.
The court did not order the property to be sold in this judgment. That distinction is central to understanding the process.
What is a charging order?
A charging order secures a court judgment debt against the debtor’s interest in an asset, such as a house or flat. For example, suppose you obtain a judgment requiring someone to pay £30,000. They do not pay, but they own a property. A charging order can attach that debt to their interest in the property.
It does not transfer ownership to you or immediately put cash into your account. It provides security which may help you recover payment from the property.
The order should be protected by the appropriate entry at HM Land Registry. The type of entry depends on the ownership arrangements and the interest charged.
How do you obtain a charging order?
The process normally has two stages.
First, the interim charging order. The creditor applies with details of the judgment, the outstanding amount and the debtor’s interest in the property. The court usually considers the initial application without a hearing.
Second, the final charging order. The application and interim order must be served on the debtor and other relevant people, including any co-owner. They have an opportunity to object. The court then decides whether the charge should continue as a final order. Depending on the procedure and whether objections arise, a hearing may be required.
A final order is not automatic merely because an interim order has been made.
Does a charging order mean the debtor must leave?
No. A charging order alone does not require the debtor to move out or sell the property.
A creditor may retain the security and await a future sale. Alternatively, the creditor may seek an order for sale to enforce the charge.
This requires a separate court claim. The creditor cannot simply instruct an estate agent to sell someone else’s home because a charging order exists.
What is an order for sale?
An order for sale authorises the sale of the property to enforce the charging order.
The creditor must provide supporting evidence, including the outstanding debt, the property’s estimated value, other secured debts and details of people occupying it.
The court must decide whether sale should be ordered. Where a home is involved, the debtor’s circumstances and the interests of other owners or occupiers can be important. An order may include arrangements governing payment, possession and how the sale is conducted.
Obtaining a charging order therefore does not guarantee that the court will subsequently order a sale.
What if the property already has a mortgage?
A property’s value is not the same as the amount available to satisfy your judgment.
Suppose a debtor solely owns a property worth £400,000, with an outstanding mortgage of £350,000. Before sale costs and any other relevant liabilities, the equity is only £50,000.
An earlier mortgage will generally have priority over a later charging order. Sale proceeds must be distributed according to the relevant priorities; the judgment creditor does not automatically get paid first.
Before pursuing a sale, consider the likely proceeds after prior secured debts and costs. A charging order can provide useful security while producing little immediate recovery.
What if the property is jointly owned?
If only one owner owes the judgment debt, the charging order generally attaches to that debtor’s beneficial interest—their financial stake in the property—rather than the other owner’s share.
For instance, a judgment against one spouse does not automatically make the other spouse’s interest available to pay it.
These orders are commonly protected by a restriction at HM Land Registry. A restriction is not equivalent to a mortgage over the whole property, and its effect on a later sale requires careful assessment. Creditors should not assume that every sale will automatically result in payment.
What should creditors and homeowners do?
For creditors, investigate ownership, mortgages and available equity before incurring enforcement costs. The right question is not simply whether the debtor owns a property, but whether this route is likely to recover the money.
For homeowners, do not ignore an interim charging order or a claim for sale. Check the response deadline and provide evidence supporting any objection. A charging order is serious, but it is not an immediate eviction order.
Lisa’s Law’s Litigation and Dispute Resolution team can advise on securing judgment debts, pursuing orders for sale and responding to enforcement against property.
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