Change of Council tax banding

wodgerdodger

We've been looking around on the internet for anew property and have noticed on a couple of agents details the statement "currently band X may be subject to change following purchase" or words very similar.

I wasnt aware that any change is made following purchase even if the price paid puts it into a different tax band. have I missed something or is it the agents just being cautious and covering themselves?

PasturesNew

If a house has been significantly improved/enlarged, so it might go into the higher council tax band, then the time that happens is when it's sold.

If I buy a band A 1-bed bungalow and turn it into a mansion with a pool that would have attracted a band H rating, then whoever buys the house from me will be reassessed and end up being an H.

If I bought an H band mansion and knocked it all down except one studio room, then I can apply to immediately be reassessed and go down to a band A.

It's always been there in the rules, it's just not many encounter it.

triggerhappy_2

Sorry to thread hijack, but what would the situation be for rebanding if the property itself hasn't changed but the value has significantly? e.g. the house was built, valued and sold for £175,000 in late 2007 and has now been revalued at £100,000 and sold for £95,000.

prudryden

I read about a case recently (can't remember where - might have been on this forum even) whereby a homeowner requested a downgrade of his band based on his neighbours banding. The council subsequently refused his request, but raised the banding of his neighbours. True or not - no guarantees.

scottishblondie

triggerhappy wrote: »

Sorry to thread hijack, but what would the situation be for rebanding if the property itself hasn't changed but the value has significantly? e.g. the house was built, valued and sold for £175,000 in late 2007 and has now been revalued at £100,000 and sold for £95,000.

Banding is currently based on the price in 1991, so the sale value now has no impact. Rebanding really only comes into play when properties are significantly altered, or where new builds are banded based on an estimated value. I successfully appealed the banding on my flat built in 2001, as it was placed in a much higher band than equivalent properties that existed in 1991.

triggerhappy_2

This is what confuses me though - I believe the the sale price in Oct 2007 (when it was first built) was massively inflated, so their estimate of what it would be worth in 1991, presumably based on the selling price, was also over inflated.

If you buy a house that was first banded in 2007 (when the prices were unrealistic) are you just stuck with that forever?

samroo

I got my one bed flat rebanded to band A quite easily. You just have to work out what it would have been worth in 1991 and see which band this falls into. Many new builds have too high a banding.

deedee71

wodgerdodger wrote: »

We've been looking around on the internet for anew property and have noticed on a couple of agents details the statement "currently band X may be subject to change following purchase" or words very similar.

I wasnt aware that any change is made following purchase even if the price paid puts it into a different tax band. have I missed something or is it the agents just being cautious and covering themselves?

This happened to me when I bought a two bedroom flat that had been extended into the loft. My lawyer warned me would probably happen and it did.

It took about 6 months for the Valuation Board (Scotland) to send through the notification and they back dated it to when I had made the purchase.:(

wodgerdodger

So it looks like it occurs if significant improvement/enlargement takes place. Does anyone know who or what triggers the reassesment?

Who notifies the council of any change? Obviously if formal planning approval had been necessary then on completion of the works I suppose the council could make an adjustment then or does it not happen until it changes hands.

CIS

Who notifies the council of any change? Obviously if formal planning approval had been necessary then on completion of the works I suppose the council could make an adjustment then or does it not happen until it changes hands.

The council have no say in the banding. The VOA set the banding and will notify the council of the council tax band to use.

So it looks like it occurs if significant improvement/enlargement takes place. Does anyone know who or what triggers the reassesment?

The re-assesment takes place on sale or transfer of ownership.

scottishblondie

triggerhappy wrote: »

This is what confuses me though - I believe the the sale price in Oct 2007 (when it was first built) was massively inflated, so their estimate of what it would be worth in 1991, presumably based on the selling price, was also over inflated.

If you buy a house that was first banded in 2007 (when the prices were unrealistic) are you just stuck with that forever?

Nope you are not stuck with it, but you may be in for a fight. I gathered evidence that my flat was in the wrong band by looking at the banding of other properties in my area. It wasn't simple, as my flat is a new build duplex in an area dominated by old tennaments and townhouse conversions.

The person sent by the VOA was adamant that as it was a new build it was more desirable than the older properties and therefore would have commanded a higher price in '91, even though it is significantly smaller than a 3 bed tennament, so we had to argue. We won in the end and got it dropped one band. I still think this is too high, as most of the properties on my street are still 2 bands lower, but that was as far as they would budge.

On the upside they backdated the rebanding to when it was built. Didn't help me much, but the previous owners got a nice cheque out of it!