Difference between Charging Order or Restriction on a property

[Ingrid]

My daughter took her ex to court over monies he owed her, currently standing at over £6k.

She won but he paid her nothing

 

a year later she went back to court and the judge awarded her a Charging Order over his property (he co-owns with a previous ex).

 

She has tried to register the Charge with the Land Registry but they appear to have awarded a Restriction.

 

What is the difference and what should she do?

[BazzaS]

It is a restriction (likely a Restriction K), probably as the judgment was against him alone and the property is in co-ownership.

 

With a ‘full’ charging order the holder can block any sale (& thus usually gets an undertaking from a conveyancing solicitor that they will be paid in full as a condition of allowing a sale).

 

With a Restriction K some conveyancers believe the same, but the terms of the Restriction only require the conveyancer to certify that they will inform the holder of the Restriction of the sale.

[dx100uk]

you cant get a CO on a jointly owned property

only a restriction k

which to all intend and purpose is useless

as all it dictates that must be done

is when the property is sold, the solicitor informs you

then its too late.

 

need to shoot whomever told her to go for a CO.

without having investigated the circumstances properly.

 

better to try for an attachment to earnings order [as long a he is PAYE]

that way she'll get paid.

[Ingrid]

He's self employed.

 

He started his own business when she was with him, which is where some of her money went, in helping him out with some of his bills.

 

He was Limited for the first 12 months and then moved premises as he had a sizeable rates bill to pay and dissolved the limited company.

 

He told her she's not getting any of her money back.

 

He moved back in with his parents and rents his house out.

 

We know he takes in cash from his business as he did it when he and my daughter were together.

 

He can afford to pay her, but she just can't get the money out of him.

 

The judge was aware that the property was jointly owned, was he wrong to grant a Charging Order?

[Andyorch]

Not wrong...it merely secures the judgment against his property...it how you intend to execute the judgment further that becomes a problem.

 

Forced sale could be hard ...not impossible.

 

Attachment of Earnings not applicable ...Self employed

 

Third Party Debt Order...possible if you have his account details.

 

Statuary Demand /Bankruptcy/Winding up...looks favourite.

 

Regards

 

Andy

[Ganymede]

you cant get a CO on a jointly owned property

only a restriction k

which to all intend and purpose is useless

as all it dictates that must be done

is when the property is sold, the solicitor informs you

then its too late.

 

need to shoot whomever told her to go for a CO.

without having investigated the circumstances properly.

 

better to try for an attachment to earnings order [as long a he is PAYE]

that way she'll get paid.

 

 

No quite accurate, DX.

 

A Charging Order can be obtained against jointly owned properties.

 

However, the method of registration differs from an Equitable Charge for one debtor/property owner to a Restriction for one debtor/multiple property owners.

 

In both cases a Charging Order is still obtained and either an Equitable Charge or Restriction can be used to enforce an Order for Sale potentially.

[Old Cogger]

Practice guide 76: charging orders - GOV.UK

https://www.gov.uk/government/.../charging-orders/practice-guide-76-charging-order...