Orders for sale - Shelter England - What is an order for sale in the UK?

Let’s keep it clear and simple. An Order for Sale is a court order that permits a property to be sold to recover a debt. It is one of the most serious enforcement measures available and is generally regarded by the courts as a last resort.

Importantly, an Order for Sale doesn't mean you have to rush to sell your home right away. Often, the court will explore other options first, like giving you extra time to pay, adjusting payment plans, or finding ways to settle the debt without needing to sell the property.

If an Order for Sale is granted, the court may:

• allow a period of time for the debt to be settled, or
• permit the property to be sold voluntarily by you, or
• in more serious cases, allow the creditor to enforce the sale through the court process.

The timescales involved are not fixed and depend entirely on the circumstances of the case, including the size of the debt, your financial position, who lives in the property, and whether alternative solutions are available.

While an Order for Sale might eventually mean you have to leave the property, keep in mind that this is quite rare. There are several steps and safeguards along the way designed to prevent this from happening until absolutely necessary.

A creditor normally has to:

• get a County Court Judgment (CCJ),
• then get a Charging Order on your property,
• and only then can they ask for an Order for Sale as a final step.​

So if you’re worrying about “they’re going to take my house tomorrow”, slow down. There are several stages, and you have rights and options at each one.

There are essentially four groups:

1. A mortgage lender of the property (your mortgage provider)

A mortgage lender of the property, that is, your mortgage provider, usually comes into play when there has been a breach of the agreement, such as failing to keep up with payments.

Mortgage lenders typically seek to resolve arrears through payment plans or by capitalising them before resorting to enforcement actions. However, if arrears accumulate and no agreement is reached, they can seek a possession order from the court, which may lead to the sale of the property to recover the outstanding amount.

2. A trustee in bankruptcy

A trustee in bankruptcy – this is to be expected if you have chosen to declare yourself bankrupt or have been declared bankrupt.

The trustee’s role is to realise (sell) your assets to pay creditors. Your home can be one of the largest assets, so they may apply for an Order for Sale. That said, the court will still consider other factors like:

• how long you’ve lived there,
• whether there are children or vulnerable people in the property,
• and whether there are other practical options before forcing a sale.​

3. An owner in a joint ownership property

If any other parties with a financial interest in the property do not wish to sell, the party wanting to sell can still pursue this option and apply for an Order for Sale.

For example, imagine you and an ex-partner own a property together, but they refuse to sell or move on. The co-owner who wishes to sell can ask the court for an Order for Sale to “break the deadlock." The court then considers everyone’s interests and decides what’s fair under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA).

4. A creditor who has secured a Charging Order

Finally, a creditor who has obtained a Charging Order—anyone owed a debt can be the creditor. Originally, the debt might have been unsecured, such as from a credit card or loan, but it becomes secured once a Charging Order is in place. This process is complex and not always straightforward.

Once a creditor has a final Charging Order, they can apply to the court for an Order for Sale. However, this is a significant and relatively rare step. The court must carefully assess your personal circumstances, including the amount of debt, available equity, and whether children or vulnerable persons live in the property, before granting permission for a sale.

As we mentioned earlier, this is usually the very last option. Judges have been advised to be cautious about granting an Order for Sale. So, even if you find yourself on the receiving end of an application, it’s important to remember that it’s not a done deal.

When a creditor cannot apply for an Order for Sale

You should first understand the situations in which a creditor cannot request an Order for Sale.

• If you owe less than £1,000, a Charging Order cannot usually be obtained, which means an Order for Sale cannot follow.
• If you received the County Court Judgment (CCJ) on or after 1 October 2012, and the court ordered the debt to be paid by instalments, provided you are up to date with those instalments.
• If the court ordered instalments (regardless of the date of the CCJ) and you are up to date with those payments at the time of the Charging Order or Order for Sale application.*

These rules are derived from the interaction between the Consumer Credit Act and the Civil Procedure Rules. Essentially, if your regulated consumer debt is less than £1,000, or if a County Court Judgment issued on or after 1 October 2012 ordered instalments that have been maintained, a creditor generally cannot move forward with an Order for Sale for that debt.

If you believe none of these apply to you, relax — we’re just getting started.

That’s not the end of it. We still have some options to share with you. They aren’t guarantees, but they could help influence the Judge’s decision, as Judges must consider:

Other household members

Other household members: How would the Order for Sale affect the rest of the household? For instance, consider the potential harm to young children from such a drastic measure. If there are elderly, vulnerable, or disabled individuals in the home, the Judge must evaluate how granting the order would impact them as well. They are not responsible for the current situation. The Judge needs to carefully weigh the effects on other household members against the creditor’s interests and will only approve an Order for Sale if it is justified and fair in all the circumstances.

This is where you need to spell things out clearly in your evidence:

• children’s ages and schools,
• medical conditions or disabilities,
• any support or adaptations in the property,
• lack of realistic alternative housing.

Judges are human. The more clearly you present the real-world impact, the more seriously they must consider it.

Paying up in a reasonable amount of time

Judges will assess whether it is feasible to clear the debt within a reasonable timeframe. If you can show that the debt can be settled promptly, the Judge may decide that a sale is not necessary.

This is why a realistic income and expenditure sheet is vital. If you can show, on paper, that you can afford a set monthly amount that clears the debt over a sensible period, the judge can:

• completely refuse the Order for Sale, or
• suspend it on terms – meaning that as long as you adhere to the agreed payments, the property cannot be sold.

Alternative options

Is there a different way to clear the debt? As we mentioned earlier, an Order for Sale is a last resort. The Judge might be open to considering other fair and reasonable options. So, if you have any ideas, don't hesitate to suggest them to the Judge. Just make sure your suggestions are practical. The Judge will make sure that the final decision is fair for everyone involved.

Examples of alternatives the court might consider include:

• a lump sum payment from family or from selling another asset,
• remortgaging or secured borrowing, applicable only when truly affordable,
• a realistic instalment plan that suits your budget.

If you walk into court with a practical, well-thought-out proposal, you provide the judge with something substantial to work with instead of simply “please don’t”.

Property equity

Is there much equity in the property? If there is little or no equity, or the property is in negative equity, the court may decide that granting an Order for Sale would be disproportionate, particularly if the creditor would gain little or no benefit from the sale.

Courts focus on whether a sale would effectively accomplish its goal. If, after paying:

• the mortgage,
• any prior charges,
• estate agent and legal costs,

there’s hardly anything remaining for the creditor, forcing a sale might appear disproportionate. This can serve as a strong reason to oppose an Order for Sale.

Joint property ownership

Oh, and one more thing. Regarding joint property ownership: if your property is jointly owned and the debt is solely in your name, the court must conduct a thorough balancing exercise before deciding whether to grant an Order for Sale. That’s because the court must balance:

• your creditor’s rights,
• your rights, and
• the rights of the co-owner (who may have done nothing wrong and not owe the debt at all).​

This additional layer of complexity might encourage the court to be a bit more cautious about pushing a sale forward.

If none of the options above work for you or are applicable, we have one more suggestion. You can request permission to sell the property on your own. It might not be your preferred situation, but it will at least give you some time to get organised.

If your property has sufficient equity, you might consider buying another home or renting, giving yourself the chance to feel more in control again without the pressure to rush into any decisions.

When you sell voluntarily:

• you can generally secure a better price than in a forced sale,
• you can choose the timing and estate agent,
• and you can plan your move properly rather than facing a sudden eviction.

Judges may view this route favourably where a sale is inevitable, as it is often more orderly and less disruptive for everyone involved.

The Real Debt Guy is a qualified financial adviser and a UK debt expert. The information in this article is considered to be true and correct at the publication date.