PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Council Tax on Inherited Empty Property (For Sale)

Options
24

Comments

  • pinkshoes
    pinkshoes Posts: 20,540 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    They have high CT after 6 months vacant as councils, particularly those with housing shortages, do now want vacant properties!

    I had to pay at 90% CT on my vacant flat in Oxford as there was a delay in the sale going through.

    Why not post a link to the property on here and let people have a look and give you some honest and constructive criticism on why they think it's not selling.

    How much interest has it had in the 6 months since it's been on the market?
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
  • p00hsticks wrote: »
    Do the maths - it's now costing you £250 a month in council tax, plus insurance (I assume that you have it insured and the insurer know the property is empty ? ) plus utility bills unless you have had everything turned off.

    If you can't afford to meet the bills to keep the property as it is, then I think you really only have two options - either reduce the price to get it to sell or rent it out.

    Thanks very much.

    Everything's turned off and on tariffs with no standing charges so negligible costs with these.

    I'm beginning to think that renting it out is going to be my only solution with this for now. At least the income might give me a way to clear the arrears though will have to happen quick as the council have said they won't negotiate on payment or terms. Pay up in full or go to court.

    I've offered to settle the bill out of the sale of the house but this isn't acceptable either apparently.
  • Al2012
    Al2012 Posts: 9 Forumite
    edited 15 December 2012 at 10:15PM
    You are looking at the following here:
    1)Council tax due until April
    2) Liability Order fees 80 pounds
    3) potentially 42.50 of bailiff fees. Hopefully you can stop it at point 1 or 2 though.

    4) if you let the bailiffs in then you are looking at a lot more on top. Do not let it get to this stage.

    If this situation carries on into next tax year then obviously the cycle will repeat and you may end up getting liability order costs and more bailiff fees again so you really need to do everything you can to get this property sold/rented.
    df

    Thanks very much for all the detail.

    I've always kept my house (no pun intended) in order so the last thing I want is the Bailiffs at my door. Arrears aside, ongoing if I must pay in full it would be interesting to see where the Bailiffs would go if I put the address as my home and said I had moved out of the family home. I'd like to see the dreaded B's try to repossess something out of an empty house! I've also realised I could at least reduce the bill by 25% at the same time too if I did this, which is why I think the whole situation is bonkers.

    Really wanting to play this straight down the line though but there seems to be no flexibility whatever.

    I know ignorance is no excuse but it would have helped if the council had explained the situation properly at the outset when I called to explain the situation. They said no CT was due and there was no mention of this 6 months as there is no way I would have let it come to this.
  • pinkshoes wrote: »
    They have high CT after 6 months vacant as councils, particularly those with housing shortages, do now want vacant properties!

    I had to pay at 90% CT on my vacant flat in Oxford as there was a delay in the sale going through.

    Why not post a link to the property on here and let people have a look and give you some honest and constructive criticism on why they think it's not selling.

    How much interest has it had in the 6 months since it's been on the market?

    Thanks very much.

    I've had no firm offers, two buy to letters have expressed an interest at about 50% of the asking price but it would seem ridiculous to sell a property at £40k less than the asking price to settle a £1k bill?

    As mentioned further up I get that in some areas housing is in short supply. If I was asking a ridiculous price or not put it on the market waiting for things to improve then fine that would be my choice but I'm doing all that I consider reasonable to make a quick sale and can only be guided by other local prices and dropping 10% lower?
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    To clarify the exemptions (in a simplistic way):

    Class A- properties undergoing or requiring major or structural works (max 12 months)
    Class C -unoccupied and unfurnished properties (max 6 months)
    Class F - property for which probate hasn't be granted or up to 6 months from when probate was granted (or until the property has been sold or transferred to another party)
    Class K - a property previously occupied by a student ( not applicable here)
    Class J - a property left by a person going to provide care (not applicable here).

    What was actually happening with the property in regards of the works needed on it ?
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • CIS wrote: »
    To clarify the exemptions (in a simplistic way):

    Class A- properties undergoing or requiring major or structural works (max 12 months)
    Class C -unoccupied and unfurnished properties (max 6 months)
    Class F - property for which probate hasn't be granted or up to 6 months from when probate was granted (or until the property has been sold or transferred to another party)
    Class K - a property previously occupied by a student ( not applicable here)
    Class J - a property left by a person going to provide care (not applicable here).

    What was actually happening with the property in regards of the works needed on it ?

    Thanks CIS.

    Nothing structural fortunately or unfortunately. Magnoliard and glossed throughout, cheap neutral carpets, new kitchen cupboard doors and bathroom suite, couple of new windows, general bits and pieces.

    Some roof slates were replaced and repointed as well because the roof was leaking but was told by the council that this didn't count, in their words it would pretty much have to be without a roof to qualify under A!

    As for F as I acted as Executor for my Dad's estate I do wish in hindsight that I hadn't signed the property into my own name. From what you say above I may only have got the same 6 months but being unable to pay I would feel less exposed now if it was still under Executor rather than me personally even if one and the same. Pretty sure that would quickly become a legal minefield all on its own anyway though. It may of forced a sale at any price but at least I wouldn't be worried about Bailiffs.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    You get probate +6 months so there is plenty of time to market the property ready for probate which can be delayed a long time if the propert is the main estate.

    If a place does not sell it is overpriced

    if BTL are coming in at £40k below asking you have to ask is it worth renting out to cover all the bills fo 6month/year.

    Remember if you rent/occupy for a preriod you get another 6 month.
  • Al2012
    Al2012 Posts: 9 Forumite
    edited 16 December 2012 at 3:59PM
    You get probate +6 months so there is plenty of time to market the property ready for probate which can be delayed a long time if the propert is the main estate.

    If a place does not sell it is overpriced

    if BTL are coming in at £40k below asking you have to ask is it worth renting out to cover all the bills fo 6month/year.

    Remember if you rent/occupy for a preriod you get another 6 month.

    Probate was granted and the Deeds transferred last Decemeber which is where they get May from. That was Probate plus 6 months. Again, hindsight and a bit of knowledge are wonderful things!

    Regards the last point, how long a period do you have to rent/occupy for before the clock is reset so to speak and the 6 month exemption under C reapplys if the property were to become empty again?
  • lincroft1710
    lincroft1710 Posts: 18,883 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 16 December 2012 at 4:00PM
    Al2012 wrote: »

    Everything's turned off

    It's actually a good idea to leave the heating on low, prevents damp and pipes freezing.

    As others have said, reduce the price further and get rid of the place.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • Better_Days
    Better_Days Posts: 2,742 Forumite
    I've been Money Tipped!
    I do sympathise, when my Dad passed away there was lots to sort out on his flat and various bills to pay. I was lucky enough to have savings to pay the bills straight away, but the amounts do add up and it is not the sort of thing you can budget for.

    We also had to sort out the flat to make it saleable, which took nearly 6 months, then it took ages to sell, for exactly the amount the EA thought it would fetch. The problem was that the market for one bed ex-council first floor flats isn't what you would call buoyant!

    Not something I would usually suggest, but could you pay the bill on your credit card, make the minimum payments and pay the balance when the house is sold, along with the interest charged by the CC company.

    This is not the time to worry about your children's inheritance. Why not get some more EA's round to give their thoughts on valuations, I would recommend that you try some of the local independents, but don't tell them what other EA's have valued at! Also have you had a look at the local sold prices for comparable properties? This would give you an idea of how realistic the AP is.
    It is a good idea to be alone in a garden at dawn or dark so that all its shy presences may haunt you and possess you in a reverie of suspended thought.
    James Douglas
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.