Charging Orders – A Warning to all Joint Owners

When a creditor obtains a County Court Judgment (CCJ) against someone who owes them money (the ‘debtor’), they have several options to recover that debt. One of the most powerful is a Charging Order — which can be registered against a debtor’s property and, in some cases, enforced through a sale.

What is a Charging Order?

A Charging Order allows a creditor to secure the amount owed against property owned by the debtor. Once registered at HM Land Registry, it means:

• The debt becomes secured against the property. If it’s sold, the creditor is paid from the sale proceeds (subject to available equity).

• The creditor may apply for an Order for Sale to force repayment rather than waiting for the debtor to sell voluntarily.

However, the implications become more complex where the property is jointly owned.

How Charging Orders affect jointly owned properties

A key case — C Putnam & Sons v Archibald Taylor and Agneta Taylor [2009] EWHC 317 (Ch) — highlights the risks.

In this case, a husband owed money to a contractor, and the contractor secured a Charging Order against the couple’s jointly owned matrimonial home. The wife was not involved in her husband’s debt, yet the court ruled that:

• The Charging Order severed the joint tenancy, converting ownership into tenants in common.

• Each co-owner then held a distinct 50% share of the property.

• Only the debtor’s share could be used to satisfy the debt.

Although Mrs Taylor’s half of the home was protected, the court still permitted a sale, meaning she risked losing her home to settle her husband’s liability.

Why this matters for homeowners

If you jointly own property, a Charging Order can have far-reaching legal consequences, even if you are not the debtor.

• The order may sever the joint tenancy, changing how the property is owned.

• On death, the doctrine of survivorship no longer applies — meaning the deceased’s share may pass under their Will or via intestacy rules to someone else.

• Each co-owner can sell or transfer their share independently unless there’s a Declaration of Trust in place.

Protecting yourself

If a Charging Order is registered on your jointly owned property, consider:

1. Reviewing or updating your Will – to ensure your share passes according to your wishes.

2. Creating a Declaration of Trust – to record ownership shares and prevent unilateral sales.

3. Seeking advice promptly – on both debt recovery and estate planning implications.

Need advice on Charging Orders or joint property ownership?

If you are a joint property owner and need advice about Charging Orders, Wills, or property ownership, please fill out the contact form on this page, email info@ansons.law or call 01543 263456, and a member of our team will get back to you.

Disclaimer: The contents of this article are for general information only and do not constitute legal advice. The law and HMRC guidance may have changed since publication. Always seek professional advice before taking action.