Council tax for unoccupied house

Heycock

CIS...yes, the initial exemption was the class F exemption. The second period of 6 months was a discretionary non enforcement period during which the unpaid CT would continue to accumulate. In practice, as I said, the only practical enforcement was a legal charge which they didn't bother with in the end. The estate was straightforward so I'd got probate through in 3 weeks anyway. There were no cash assets so the council had no choice so long as I continued to make reasonable efforts to liquidate the main asset...the flat. If I'd held out for a better price it could have been seen as unduly depriving debtors, including the council, which is what OP needs to avoid.

CIS

If I'd held out for a better price it could have been seen as unduly depriving debtors, including the council, which is what OP needs to avoid.

That's the key point in this and many similar cases - the exors have to not just try for the best sale value they have to consider ongoing costs to the estate and try to minimise these.

Heycock

I'm intrigued now, CIS. What could the council do in these circumstances.....you're in the game so you must know. I would have thought that other than getting an executor removed for inability or unsuitability to act and then suing them personally for the loss they have caused, their options are what? As long as the executor is acting in good faith and making a real effort (by reducing the asking price) doesn't the council come up against the problem of them being owed by the estate and not the executor?
Which is why I thought their only reasonable enforcement action is a formal charge against the estate.
There must be some formal procedure laid down, surely?

Heycock

Damn...Of course I meant "depriving creditors". A silly unforgiveable mistake from someone working in the credit rating industry several lifetimes ago! I must remove my service revolver from my desk draw and make amends.

CIS

As long as the executor is acting in good faith and making a real effort (by reducing the asking price) doesn't the council come up against the problem of them being owed by the estate and not the executor?

They do.

The council is reduced to taking civil action against the estate but they can take also take any action under this if they believe the executor is not acting in the interest of the estate.

Council Tax legislation basically advised that no liability order can be granted or is needed to charge the estate after death for any council tax due. It leaves enforcement (under council tax legislation) at that point and the debt them becomes a standard debt on the estate.

Heycock

Ah...thanks CIS. So I was right about the limited action that could be taken against the executor but wrong about the legal charge. That was me making a false assumption of what the finance clerk meant when she said the debt would be charged to the estate. I thought she meant a legal charge. Explains why I never heard from the legal dept!

Ames

mrschaucer wrote: »

This is just getting silly with all these ongoing bills and aggravation for all of you. As executor, can't you just put the house to auction and get rid of it once and for all, for THE HIGHEST PRICE POSSIBLE at the time? Your relatives have had time to try and sell the house their way and it hasn't worked, has it? For goodness sake, just get rid.

To be fair, the house has only been up for sale since August, so about three months, which isn't that long. I think in February I'll explain to them that the council can take us to court (adding more costs) if we can't pay the CT. If sister wants to stump up for it and keep the house on the market she can, if not we'll have to reduce the asking price. Which'll be just in time for the three months of the year when houses do actually sell (according to them), so should be more attractive and hopefully will sell.

We had one viewer within a fortnight of it going up, and she wanted to buy but it was dependent on her selling her house, so I don't know if she's still in the frame. The EA haven't been in touch at all since then so I'm assuming there's been no more interest.

Heycock

AMES...read post 46.

Dunroamin

Ames wrote: »

To be fair, the house has only been up for sale since August, so about three months, which isn't that long.

How many viewings have you had and what was the feedback from them?

ETA

Just read your latest post.

If you've had the property on the market for 3 months and only had one viewing, doesn't that scream at you (and your sister) that the price is way too high? Given that people routinely view properties priced at more than 10% of their budget (to allow for offers), it does sound, I'm afraid, as if your price is way off the mark.

The fact that your EA hasn't been in touch also rings alarm bells - it sounds as if they've put it on at a high price to get your business but know that you'll get nothing like the current price. At the very least, why not go back to the Housing Board and ask for further advice on there?

plum2002

If you aren't hearing from the EA bin them, a good EA should keep in touch and have an idea why you aren't getting viewings/offers.