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Council Tax

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  • System
    System Posts: 178,364 Community Admin
    10,000 Posts Photogenic Name Dropper
    Yes they have spoken with their solicitors and they couldn't believe it and sounded shocked that it was being assessed.
    I would have thought that a solicitor dealing with house sales would have been aware that properties are re-assessed on sale if planning permission has been obtained/applied for during the tenure of the previous owner.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Update:

    My parents have received the letter from the VOA and they have rebranded it as two dwellings. The 'annex' has been given a band A and the rest of the house has stayed a C.

    Isn't this a bit strange? Surely if it was already a band C and they've taken quite a bit of the property away and banded that a council band A shouldn't the other bit reduce?

    They can obviously start an appeal now they know what's happening at least. The Voa are going to send some appeal documents out. How do we get advice as to whether simply removing the job would be enough?

    Also as we were waiting for the decision of the VOA I have been onto the property ombudsman and also the law ombudsman due to neither the estate agents or the solicitors advising of a potential issue prior to the sale. Both have said that my parents should have been advised.

    I've already spoken to my parents solicitors and stated I wasn't happy with the situation. They were funny with me at first saying they have just gone off the fact it was a single story extension. The VOA told me that the law society has advised that solicitors should advise of such issues so they've now agreed to help. They've sent a letter to the council and also are having a litigation solicitor to look at it.

    I've sent them all the correspondence we have received so far.

    The frustrating thing is my parents had paid for the in-depth survey on the property which detailed everything in the property including everything in the annex.

    I am yet to speak to the estate agents but that's my next thing to do. The ombudsman told me to go through their complaints procedure. When I have looked back at the sales literature for the property its got the main bit of the house on one sheet and then a seperate sheet stating 'seperate annex' but in no way does it say could be liable to additional council tax. I have a feeling they knew all along one of their staff even rented the property before my parents bought it so they knew the property very well.

    Somebody hasn't done their job properly somewhere along the line.

    Any advice welcome

    Thanks
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Isn't this a bit strange? Surely if it was already a band C and they've taken quite a bit of the property away and banded that a council band A shouldn't the other bit reduce?

    think about it again. Nothing has been "taken away". It was a band C property before the annex was built and it is still a band C after the annex because the annex is a separate property and the rest of the house is unchanged

    but as advised by others if you do win an appeal then it becomes one extended property that has just been sold so it is perfectly proper for it to be re-banded as a result of the sale - ie you could end up with one property at band D because its very probable that an extended property will not remain within a C
    Somebody hasn't done their job properly somewhere along the line.
    agreed sounds like you have some basis for a case against the solicitors and/or EA - just be careful how much you spend pursuing a case though
  • Thanks for the reply.

    I think if it was banded D that would be fine it's just the two council tax bands which is the issue. It's frustrating that nobody has told them that it could change especially as they asked the question of what band it was when dealing with the estate agents. They just said it was band C and said no more.

    Before this I didn't even know that a property can be rebanded after a sale. You'd think this would happen when a council signs off planning permission at the time the extension was built.

    We'll have to see how we get on there's another property on the street which my parents friend owns which is a band D and has a similar size extension to my parents.

    I'm hoping on it not costing anything to persue a case. At the moment the solicitors are helping for free (prob due to them knowing they've messed up). I'll have to see what the council says to the letter the solicitor has sent. I can't see it doing any good. The solicitors seem just as shocked as my parents are that's its been banded as two properties.

    If I go through the ombudsman won't it be free to persue a case? Both the property and law ombudsman feel we have a concrete case and both the solicitors and estate agents are registered with them.

    It's what they can do financially they'll be paying an extra £1000 per year for what could be another 30+ years and then there's the issue of resale with it having two bands.

    That's just the financial side it's also made my mum and dad both very distressed to the point of being ill with it all. All at a time when they'd planned on enjoying themselves.

    How do we find out if removing the hob would be enough is that something the VOA can advise on?

    Thanks
  • jennifernil
    jennifernil Posts: 5,747 Forumite
    Part of the Furniture 1,000 Posts
    edited 29 December 2012 at 3:35PM
    If the property was extended by the previous owner, it would be revalued when sold, so could move from a band C to band D.

    This revaluing is standard when an extended property is sold on, so nothing to complain about. I suppose you could have expected the solicitor to point this out, but most people would be aware of this already.

    The fact it has its own little kitchen area allows the VOA to band it as an annex, if this was removed it would just be a simple extension. Both sink and hob should be removed completely. The en-suite is not a problem, and I would not have thought having a door to outside would be either, but that would be fairly easily converted to a window if necessary.

    A band D council tax would be less than a band C plus a band A with single person discount, so this would seem the sensible way to go.
  • lincroft1710
    lincroft1710 Posts: 19,029 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper

    How do we find out if removing the hob would be enough is that something the VOA can advise on?

    In Post 7, I advised you what your parents should do so that it could revert to a single dwelling.

    I'm ex VOA and spent the final 12 years of my working life dealing with CT appeals and this was the criteria we used when deciding if two dwellings could be rebanded as one. As I left some years ago check with them in case there has been new legislation, case law or new thinking in the meantime.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • Thanks,


    Once it's removed do we then ask the VOA to come out again and re-assess it? Obviously they have already been out once and seen the hob etc in situe.

    I don't think it's well known that properties are rebanded on sale I've never heard of it and everyone I've spoke to seem to be just as shocked. I think it's definitely something estate agents and solicitors should mention and from what the ombudsman it's in the codes of practice for both the solicitors and estate agents to advise on.

    Thanks
  • jennifernil
    jennifernil Posts: 5,747 Forumite
    Part of the Furniture 1,000 Posts
    edited 29 December 2012 at 10:14PM
    All properties are not rebanded when sold, only those which have been extended.

    In the days of domestic rates, if you extended or improved your house it was immediately revalued, but with Council Tax, the revaluation is only done when the property is sold.

    I must say, I am surprised that anyone owning their home would not know this.

    I don't think the difference between a band C and a band D council tax would be as much as £1000 per annum, where we live it is about £200.
  • John_Pierpoint
    John_Pierpoint Posts: 8,401 Forumite
    Part of the Furniture 1,000 Posts
    edited 31 December 2012 at 4:03PM
    There must be lots of properties out there with an extension in the last 20 years; which might or might not have been assessed in the mean time ?

    Given that the average house has probably changed hands at least once since the 1990s; I doubt the average home owner understands the exact nature of of the building's current/future Council Tax liability.

    Should not this sort of stuff show up on the largely pointless searches, made of the local authority?
    http://en.wikipedia.org/wiki/Council_Tax

    There is really no substitute for the buyer being on top of all the wrinkles when on site.
    The solicitors clerk, in a nice warm office, is simply going through the motions.
  • Cheers for the replies.

    I thought the searches should have brought something up.

    Someone along the line should have advised my parents prior to the sale.

    I think both the solicitors and estate agents have failed them.

    I'm just waiting to see what response the solicitors get from the council. I'm not getting my hopes up though.

    In thinking of ringing the VOA tomorrow to seek some advice on any changes my parents can make eg taking out the hob. I've asked the voa officer dealing with it all via email but not received a response.

    It does say on the council tax change doc we got off him to contact the officer with any questions. My parents will quite happily remove the hob as they don't use it whatsoever.

    Thanks.
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