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  • FIRST POST
    • Kieran2001
    • By Kieran2001 8th Feb 18, 6:03 PM
    • 24Posts
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    Kieran2001
    Moving from Bought House to Long-Term Rented
    • #1
    • 8th Feb 18, 6:03 PM
    Moving from Bought House to Long-Term Rented 8th Feb 18 at 6:03 PM
    Hello,

    Me and my parents currently live in a 3 bed room house in a town on the outskirts of County Durham. We are planning to move to a 3 bed room rented house in the same town, which has a smaller footprint, as my parents donít want to deal with the possibility of anything going wrong in the house as my parent has a low income and has recently split from my other parents permanently after 25+ years.

    My parents have had a mortgage on the house for about 20 years, and the mortgage still has a few decades left and the price of the mortgage isnít going down, pretty much just paying the interest. My parent has received a 25% reduction as she is the the only adult living in the house.

    My parents concern is that if they move from mortgage to rented, they will have to pay council tax until the mortgaged house sells which could be 3-6 Months. Is there any additional reduction schemes she can use, as she is on low income and divorced? She is unable to pay 2 council taxes, however she also canít afford to pay for repairs if thereís faults in the house, such as a pipe bursting, two breaking etc.

    Thanks fo any advice, and let me know if you need any further information to assist me.
Page 1
    • freeisgood
    • By freeisgood 8th Feb 18, 6:10 PM
    • 519 Posts
    • 798 Thanks
    freeisgood
    • #2
    • 8th Feb 18, 6:10 PM
    • #2
    • 8th Feb 18, 6:10 PM
    A mortgage for 20 years with a few decades left? What sort of mortgage was that!?
    • CIS
    • By CIS 8th Feb 18, 6:10 PM
    • 10,282 Posts
    • 5,918 Thanks
    CIS
    • #3
    • 8th Feb 18, 6:10 PM
    • #3
    • 8th Feb 18, 6:10 PM
    My parents concern is that if they move from mortgage to rented, they will have to pay council tax until the mortgaged house sells which could be 3-6 Months
    Some local authorities offer a reduction on unoccupied property but the rate is set locally so you'd need to check.

    A section 13A discretionary council tax relief could be applied for but it's very unlikely it would be grated on a second property.
    I no longer work in Council Tax Recovery but instead as a self employed consultant. My views are my own reading of the law and you should always check with the local authority in question.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 6:14 PM
    • 24 Posts
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    Kieran2001
    • #4
    • 8th Feb 18, 6:14 PM
    • #4
    • 8th Feb 18, 6:14 PM
    Some local authorities offer a reduction on unoccupied property but the rate is set locally so you'd need to check.

    A section 13A discretionary council tax relief could be applied for but it's very unlikely it would be grated on a second property.
    Originally posted by CIS
    Thanks for the advice. Anyway to find out without my parent having to go to the council offices? Nothing listed on their website. Also the house would be unfurnished, during the time it is unoccupied.
    Last edited by Kieran2001; 08-02-2018 at 6:15 PM. Reason: Added Quote
    • Kieran2001
    • By Kieran2001 8th Feb 18, 6:16 PM
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    Kieran2001
    • #5
    • 8th Feb 18, 6:16 PM
    • #5
    • 8th Feb 18, 6:16 PM
    A mortgage for 20 years with a few decades left? What sort of mortgage was that!?
    Originally posted by freeisgood
    A Pretty Bad mortgage, common issue in my county, people have barely paid the price of the property, and have instead only paid the intrest.
    • Penitent
    • By Penitent 8th Feb 18, 6:35 PM
    • 1,984 Posts
    • 6,014 Thanks
    Penitent
    • #6
    • 8th Feb 18, 6:35 PM
    • #6
    • 8th Feb 18, 6:35 PM
    Hello,

    Me and my parents currently live in a 3 bed room house in a town on the outskirts of County Durham. We are planning to move to a 3 bed room rented house in the same town, which has a smaller footprint, as my parents don!!!8217;t want to deal with the possibility of anything going wrong in the house as my parent has a low income and has recently split from my other parents permanently after 25+ years.

    My parents have had a mortgage on the house for about 20 years, and the mortgage still has a few decades left and the price of the mortgage isn!!!8217;t going down, pretty much just paying the interest. My parent has received a 25% reduction as she is the the only adult living in the house.

    My parents concern is that if they move from mortgage to rented, they will have to pay council tax until the mortgaged house sells which could be 3-6 Months. Is there any additional reduction schemes she can use, as she is on low income and divorced? She is unable to pay 2 council taxes, however she also can!!!8217;t afford to pay for repairs if there!!!8217;s faults in the house, such as a pipe bursting, two breaking etc.

    Thanks fo any advice, and let me know if you need any further information to assist me.
    Originally posted by Kieran2001
    Sorry, I'm a bit confused. It sounds like you have several parents.

    You and your father have already moved into a rented property? Your mother was living alone in the owned house (and getting the 25% single person discount on her Council Tax) and is now moving into another rented property and selling the house while it is vacant because she doesn't want to pay for broken pipes?

    She and your father would need to pay for these sorts of repairs whether they were living there or not (a buyer isn't going to buy it if there's water gushing from somewhere), so wouldn't it make sense for her to stay there until it's sold?
    • Kieran2001
    • By Kieran2001 8th Feb 18, 7:00 PM
    • 24 Posts
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    Kieran2001
    • #7
    • 8th Feb 18, 7:00 PM
    • #7
    • 8th Feb 18, 7:00 PM
    Sorry, I'm a bit confused. It sounds like you have several parents.

    You and your father have already moved into a rented property?
    Originally posted by Penitent
    No, I donít communicate with him,

    Your mother was living alone in the owned house (and getting the 25% single person discount on her Council Tax) and is now moving into another rented property
    Yes, however I also live with her but Iím in education currently.

    and selling the house while it is vacant because she doesn't want to pay for broken pipes?
    There isnít any, itís the point she wouldnít be able to afford repair bills IF it occurred.[/QUOTE]
    • Penitent
    • By Penitent 8th Feb 18, 7:09 PM
    • 1,984 Posts
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    Penitent
    • #8
    • 8th Feb 18, 7:09 PM
    • #8
    • 8th Feb 18, 7:09 PM
    There isnít any, itís the point she wouldnít be able to afford repair bills IF it occurred.
    Originally posted by Kieran2001
    I understand that, but what will she do if a pipe breaks in the owned property while she's living in the rented property? She would still either need to pay for it out of pocket or claim on her insurance. Leaving the property vacant would increase the chance of a pipe breaking (due to it being unheated), it would take longer for the break to be noticed and it may invalidate her insurance (if she has any), so there'd potentially be more damage and a bigger bill.

    Moving out just seems like a false economy.
    • newbutold
    • By newbutold 8th Feb 18, 7:15 PM
    • 665 Posts
    • 1,054 Thanks
    newbutold
    • #9
    • 8th Feb 18, 7:15 PM
    • #9
    • 8th Feb 18, 7:15 PM
    Just phone and ask the local council if they offer a Council exemption on a property whilst it!!!8217;s empty and unfurnished. You don!!!8217;t need to give them your name and address etc just to make an enquiry.

    It really varies from Council to Council what discounts are on offer, some offer no discount for an empty property, others do.

    Also another point to look into, if the water bill is rates and not metered, you!!!8217;ll need to speak to them about an exemption whilst it is empty otherwise you will need to keep paying the water rates too. My water board only used to exempt you from water rates on an empty property if you had a Council tax exemption certificate, so again it may vary area to area.
    If my posts have random wrong words, please blame the damn autocorrect not me
    • tessiesmummy
    • By tessiesmummy 8th Feb 18, 7:15 PM
    • 71 Posts
    • 61 Thanks
    tessiesmummy
    As pp suggested moving out and paying for 2 properties is ridiculous. she would surely still be paying the mortgage as well as rent? Why not stay in the house until it sells?
    • Kieran2001
    • By Kieran2001 8th Feb 18, 7:20 PM
    • 24 Posts
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    Kieran2001
    As pp suggested moving out and paying for 2 properties is ridiculous. she would surely still be paying the mortgage as well as rent? Why not stay in the house until it sells?
    Originally posted by tessiesmummy
    She was planning to communicate with the mortgage company to agree to not pay the mortgage (obviously no mortgage value decrease) whilst she sold the house, as based sale of other houses in the street are roughly twice the remaining mortgage.

    Also, she wants to remain in the same town, as she has lived here for 50+ years and worked in the same job in the town for 20 years, and thereís limited properties available in the area.
    • Penitent
    • By Penitent 8th Feb 18, 7:23 PM
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    Penitent
    I don't think she'd get income-based help on her rent (assuming she qualifies based on income) as she owns a house which she could live in, but is choosing not to, so she would potentially need to to pay both the mortgage and the rent, if the bank refuse her offer. I also don't think the bank would agree to stop payments for however long it took to sell, as it sounds like she can currently afford the mortgage (she just doesn't have enough to put aside for big repairs). When my mum was ill and her income dropped to the point when she couldn't afford her mortgage, the best her bank offered was a couple of months' payment holiday. I can't see them agreeing to stop payments just because the person wants to move into rented and leave the property vacant without a sensible reason.
    Last edited by Penitent; 08-02-2018 at 7:25 PM.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 7:30 PM
    • 3,760 Posts
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    Cakeguts
    If it is only you and her why does she need a 3 bed rented house? A two bed would be cheaper and there are usually more of those available so she could wait until she sells her house before she needs to find one.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 7:32 PM
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    Kieran2001
    If it is only you and her why does she need a 3 bed rented house? A two bed would be cheaper and there are usually more of those available so she could wait until she sells her house before she needs to find one.
    Originally posted by Cakeguts
    Her other son who currently studies full time at university, comes home to stay for up to a week at a time during the holidays.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 7:34 PM
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    Kieran2001
    I don't think she'd get income-based help on her rent (assuming she qualifies based on income) as she owns a house which she could live in, but is choosing not to, so she would potentially need to to pay both the mortgage and the rent, if the bank refuse her offer. I also don't think the bank would agree to stop payments for however long it took to sell, as it sounds like she can currently afford the mortgage (she just doesn't have enough to put aside for big repairs). When my mum was ill and her income dropped to the point when she couldn't afford her mortgage, the best her bank offered was a couple of months' payment holiday. I can't see them agreeing to stop payments just because the person wants to move into rented and leave the property vacant without a sensible reason.
    Originally posted by Penitent
    Iím not sure why a bank is relevant to this matter, itís a private mortgage company called Kengiston that she pays. If they refuse to allow it, sheís simply going to tell them to send it to auction.
    • Penitent
    • By Penitent 8th Feb 18, 7:34 PM
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    Penitent
    Her other son who currently studies full time at university, comes home to stay for up to a week at a time during the holidays.
    Originally posted by Kieran2001
    Will he be moving back in post-uni? If not, can he sleep on the couch? It doesn't seem worth the expense of paying extra rent for the odd week.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 7:37 PM
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    Kieran2001
    Will he be moving back in post-uni? If not, can he sleep on the couch? It doesn't seem worth the expense of paying extra rent for the odd week.
    Originally posted by Penitent
    He doesnít know what he plans to do, and he also needs space to study away from other people in the house when he comes through and space for clothing as well as his endless supply of apple products from the last 5years.
    • Penitent
    • By Penitent 8th Feb 18, 7:40 PM
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    Penitent
    Iím not sure why a bank is relevant to this matter, itís a private mortgage company called Kengiston that she pays. If they refuse to allow it, sheís simply going to tell them to send it to auction.
    Originally posted by Kieran2001
    Some people colloquially refer to "the bank" rather than saying "the mortgage lender". Apologies for the confusion. I'm actually familiar with Kensington, having nearly had to get a mortgage through them due to credit file issues. I'm told they're not the most helpful of lenders.

    Why would she want to it go to auction (where it will potentially achieve a lower price)?

    I really don't think she's thought this though. She seems to be doing everything possible to cost herself more money.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 7:42 PM
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    Cakeguts
    He doesnít know what he plans to do, and he also needs space to study away from other people in the house when he comes through and space for clothing as well as his endless supply of apple products from the last 5years.
    Originally posted by Kieran2001
    In a situation like this you make the lounge into another bedroom for the time that he is with you otherwise your parent is going to be paying rent for an extra bedroom that is only used as storage. When the son at university leaves and gets a job he won't know where that job might be so he will probably get his own place to live so a 2 bed will be plenty. Don't forget that 2 beds come in all sizes but tend to be cheaper and more available because they are 2 beds.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 7:43 PM
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    Kieran2001
    Some people colloquially refer to "the bank" rather than saying "the mortgage lender". Apologies for the confusion. I'm actually familiar with Kensington, having nearly had to get a mortgage through them due to credit file issues. I'm told they're not the most helpful of lenders.

    Why would she want to it go to auction (where it will potentially achieve a lower price)?

    I really don't think she's thought this though. She seems to be doing everything possible to cost herself more money.
    Originally posted by Penitent
    Letís put this simpler.

    Perfected Path

    Move Out > Rent New Property > Stop Paying Mortage > Sell House

    Alternate Path :

    Move Out > Rent New Property > Stop Paying Mortage > Auction House

    Alternatively sheís also considering the instant sale companies..
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