Would buying a lock-up garage affect my Council Tax Benefit?

lukrezia

For years I have been using a lock-up garage (with no power or water, just a single brick and tile shell) across the road, which had been passed down to me by a neighbour (not the owner), when he moved. The owner hadn't been seen for the duration of my squat and I had been thinking of claiming adverse possession but had never got round to it, then in January he turned up out of the blue, wanting to sell it. :eek: I posted about it in here at the time.

I had no choice if I wanted to keep it but to make him an offer and the purchase is going through, via a solicitor as advised in here. However, I wondered if acquiring this building will affect my Council Tax Benefit. I am an OAP lady on a low income.

This purchase is using up most of my "rainy day money" at £7000, but garages are like hen's teeth in this area and it will be a great selling feature when and if I ever need to sell my house, so I could not pass up this opportunity.

I know I will probably have to tell the CT dept about the big drop in my savings, but will they slap punitive council tax on me?

Also, there is a main sewer that runs underneath part of the garage, which recently had a blockage. The neighbour whose drain it is has had it cleared by the water company but they said there is some tree root damage, which they are coming back to sort out. Will I have any responsibility for this drain?

And lastly, does anyone know how I should go about insuring the garage?

Thanks in advance, moneysavers.

MonkeyMad

The solicitors search should detail any maintenance responsibilities you have. I'm unsure of the tax liability of a garage - can't the original owner tell you what his is?

I don't want to sound rude why why have you taken on this fantastic 'opportunity' when you have no idea of the liabilities it may entail? If you got the answers 'we will remove all your CTB' and 'you are jointly and severally liable for all maintenance on the drain' would you still be going ahead?

Newly_retired

Without further details I cannot see how a reduction in your savings would lead to losing your Council Tax Benefit.

John_Pierpoint

If it is a shared sewer, then since last Autumn it has been the responsibility of the sewerage company. If "you" have been grossly irresponsible with your trees, then they might try to claim off you, but I doubt it.

You must decide about the insurance. You know your neighbourhood. Personally I would take a chance round where I live. Your greatest risk may be kids playing on the garage and falling through the roof - that should be good for a no win no fee claim.

You could try this forum:
http://www.gardenlaw.co.uk

lukrezia

Monkeymad, the previous owner has not shown up for sixteen years until now! The situation is so convoluted I can't go into all the details here. But thanks for pointing out, and he does not pay council tax on it.

John Pierpoint, the trees belong to the local council, are on their land and have nothing to do with me.

Newly retired, I believe the council tax benefit took into account a presumed interest of so much per thousand pounds one had in savings, which they added to everything else you had incoming, so it could make a difference in whether or not they granted you any benefit. I don't know if they do that now, with interest rates being so low. I will have to check that with them.

Finally, I have myself contacted the water company and have had the reassuring news that they do bear the costs of any works that might be necessary, as well as other reassurances regarding tree roots etc, and I am going to proceed with my purchase very soon. :T

As to insurance - I will be thinking hard about insuring it against fire and vandalism ...

Thanks to you all for your constructive helpful answers.