How to remove a charge on a property

At a glance

Knowing how to remove a charge on a property matters if you want to sell, remortgage, or clear your title. In many cases, the process means confirming the type of entry, taking legal or debt advice, repaying or settling the secured debt, obtaining evidence from the creditor, and asking HM Land Registry to update the title using the correct form. Timescales vary depending on the entry and evidence required.

What Is a Charge on a Property?

A charge on a property is a legal interest registered against the title, usually to secure money owed. The most common example is a mortgage, but a charge can also arise where a creditor first obtains a County Court Judgment and then applies for a court order, known as a charging order, to secure an unpaid debt against your home.

If you sell or remortgage the property before clearing that debt, the money owed is usually taken from the proceeds before you receive them.

Charges can arise in several ways. A mortgage is the most common form of charge. But charges can also be registered by unsecured creditors who first obtain a County Court Judgment and then apply for a charging order, which secures the debt against your home or, in some jointly owned cases, against your beneficial interest in the property.

How a Charging Order Can Progress

Understanding where a charging order sits in the court process helps clarify your options at each stage.

It is important to note that a charging order does not automatically lead to an order for sale. Courts consider the circumstances carefully, including any other occupants and whether other debts are being managed. Your solicitor can advise on your specific position.

How the Consumer Credit Act Affects Charging Orders

The Consumer Credit Act 1974 provides important protections for borrowers whose debts fall under regulated consumer credit agreements, such as credit cards, personal loans, overdrafts and store cards.

Where a debt is regulated by the Consumer Credit Act, statutory interest will not usually run on the judgment in the same way as some other debts. However, contractual post-judgment interest may still be possible in some cases if the agreement allows it and the creditor follows the required notice rules. A solicitor or debt adviser can confirm whether interest should still be added in your case.

For other types of debt, statutory interest may apply depending on the type of judgment, the amount owed, and the enforcement route used. Your solicitor or debt adviser can confirm whether interest should still be added in your case.

Additionally, under the rules on charging orders and orders for sale, courts are generally prevented from making an order for sale where the charging order secures a judgment debt under a regulated Consumer Credit Act agreement, and the amount owed is less than £1,000 when the creditor applies to enforce the charge by sale.

Your solicitor or a specialist debt adviser will be able to advise on which rules apply to your particular situation, as the position can vary depending on the nature of the debt and when proceedings were started.

Can You Dispute a Charging Order?

Once a charging order reaches the final stage, there are very few options left to challenge it. However, there are circumstances in which an interim charging order may be disputed before it is made final.

Joint Ownership

If the charging order is made against a property that you own jointly, but the debt belongs only to one owner, the charge can generally only apply to that person's beneficial interest in the property. The other owner's interest is typically protected. Your solicitor can explain how this works in practice, as it depends on how the property is held.

Existing Payment Plans

If you are already repaying debts to other creditors under existing arrangements, you may be able to argue that a further charging order would compromise your ability to maintain those payments. The court may consider representations made before deciding whether the interim order should be made final.

Risk of Bankruptcy

Where bankruptcy is a realistic possibility, you may be able to argue that granting a charging order would give one creditor an unfair advantage over others. Courts have discretion in these circumstances, and legal advice is important before making this argument.

How to Remove a Charge on a Property: Step by Step

Unless you can successfully challenge the charge through one of the routes above, the primary route to removal is repaying the debt in full and then completing the formal application to HM Land Registry.

Here is the general process:

Step 1: Take Professional Advice Before Doing Anything Else

Before contacting the creditor or taking any practical steps, speak to a solicitor or a qualified debt adviser. StepChange, a UK debt charity, provides free and confidential debt advice and can help you understand your options. In some cases, advisers can also help you communicate with creditors on your behalf.

If you have a conveyancing solicitor acting for you on a property sale or remortgage, they should be your first point of contact. Any steps you take, particularly negotiating with creditors or making applications to court or HM Land Registry, should be taken in the right order and with professional guidance.

Step 2: Contact the Creditor

Once you have taken advice, contact the creditor to discuss the debt. For charging orders, the creditor will generally want to recover the money owed, and agreeing a repayment arrangement can be in both parties' interests. If the charge relates to a mortgage, court order, or another registered legal interest, the repayment and removal process may differ.

Step 3: Repay the Debt in Full

Once the debt has been repaid, request formal written confirmation from the creditor. Depending on how the charging order was registered, this confirmation may take the form of a receipt, a discharge letter, or a signed statement from the creditor or their solicitor confirming that all money secured by the order has been paid.

According to HM Land Registry guidance on charging orders, acceptable evidence for a cancellation application includes a court order discharging the charging order, a receipt for payment endorsed on a copy of the charging order, or a written discharge signed by the creditor.

Step 4: Apply to HM Land Registry

With evidence of repayment in hand, the formal application to remove the charge can be made. The form required depends on how the charging order or charge is protected on the title. For example, form CN1 may be used to cancel certain notices, while form RX3 may be used to cancel certain restrictions. Your solicitor or conveyancer should check the register entry and confirm the correct form and evidence before applying.

Your solicitor will confirm which applies and can submit the application on your behalf. If you are dealing with a mortgage charge rather than a court-ordered charging order, the process may differ. For mortgage charges, the lender will usually arrange a discharge once the mortgage has been repaid, often through the conveyancing process.

Step 5: HM Land Registry Reviews the Application

After the application is submitted, HM Land Registry will review the evidence and may notify the person or organisation benefiting from the entry, depending on the type of notice or restriction involved. Where a 15-working-day objection period applies, the application can usually proceed if no objection is received, provided the evidence is otherwise satisfactory. For agreed notices and restrictions, the correct evidence is key, and your conveyancer can confirm which route applies.

What Happens If the Creditor Does Not Remove the Charge After Repayment?

If the debt has been repaid but the entry remains on the title, your conveyancer can confirm the correct HM Land Registry route. This may involve form CN1 for certain notices, or a different form such as RX3 where a restriction is involved, depending on how the charge was registered.

It is advisable to keep thorough records throughout this process, including the original charge documentation, all repayment receipts, and any correspondence with the creditor.

What Happens If You Do Not Pay a Final Charging Order?

If a final charging order is left unpaid, the creditor may apply to the court for an order for sale. This is a court order requiring the property to be sold so that the proceeds can be used to repay the debt. Courts consider this a serious step and take into account the circumstances of all occupants, not just the debtor.

For charging orders securing a judgment debt under a regulated Consumer Credit Act agreement, the court is generally prevented from making an order for sale if the amount owed is less than £1,000 when the creditor applies to enforce the charge by sale. For other types of debt, the same threshold may not apply, and the court will consider the circumstances.

If you are facing this situation, seeking legal advice and contacting StepChange or a similar debt charity as early as possible is strongly recommended.

How Long Can a Charge Stay on a Property?

In England and Wales, a property charge generally remains on the title for as long as the underlying debt remains unpaid. There is no automatic expiry after a set period. For court-ordered charging orders, the charge persists as a secured interest until either the debt is settled or the court orders its removal. For mortgage charges, the lender will usually arrange a discharge once the mortgage has been repaid, often through the conveyancing process.

The position in Scotland is materially different. Scottish courts have their own equivalent procedures, and charging orders as used in England and Wales do not apply in Scotland in the same way. If your property is in Scotland, specialist Scottish legal advice is recommended.

Selling a Property with a Charge Against It

Having a charging order registered against your property does not necessarily prevent a sale from proceeding, but it does affect how the proceeds of sale are distributed. When you sell, your conveyancing solicitor will usually deal with any outstanding charges from the proceeds before the remaining balance is passed to you.

If you are planning to sell a property that has a charge on it, working with an experienced estate agent can help ensure the process runs as smoothly as possible. While your conveyancer leads on the legal side, an agent with experience handling properties in more complex situations can help manage the timeline and the expectations of all parties involved.

GetAgent's comparison tool lets you see which agents have the strongest performance selling homes in your area, based on real data including average sale times and percentage of asking price achieved. Over 1.2 million UK homeowners have used GetAgent to find the right agent for their circumstances, according to GetAgent's research.

If you want to understand more about what happens during the conveyancing process when selling, GetAgent's guide to the conveyancing process covers the key stages in detail.

What You Should Know Before Removing a Charge

Removing a charge on a property is a legal process that needs to be handled in the right order. In most cases, this means seeking professional advice first, repaying or settling the secured debt, getting written confirmation from the creditor, and applying to HM Land Registry using the correct form.

The key thing is not to act alone or contact different parties without guidance. A solicitor or qualified debt adviser can help you understand which steps apply to your situation and avoid mistakes that could delay the removal process.

References

• Charging Orders (Orders for Sale: Financial Thresholds) Regulations 2012, UK Parliament Research Briefing
• Citizens Advice
• Consumer Credit Act 1974, legislation.gov.uk
• HM Land Registry, Practice Guide 76: Charging Orders
• StepChange Debt Charity
• The Law Society, Find a Solicitor