Voluntary repossession /repossession

Sunshine2114

Hi .. Wonder if anyone can help .... I am in an IVA and going to fail this as we need to move home now due to circumstances etc etc we can't sell due to negative equity £15-£25k so we are going to tell NRAM we want to give it back seen as though we can't sell n tried n they also refused to allow sale due to negative .. So we have our rented property decided and ready to call to arrange tendency on it in the morning with aim to move out feb and ultimatley start to fail our IVA by not paying and stop paying mortgage and hope to file for BR.. ( so stressed by it all ) but what happens to my council tax from date I move out till date NRAM take ownership of property as from what's see they take forever to process obsession .. When I rent I will be under the same council ... I don't have any arrears etc

CIS

Until it is repossessed you will need to claim either a Class C exemption * if the property is unoccupied or substantially unfurnished or a discount (rates vary by local authority) if it is left unoccupied but furnished.

It is also you responsibility to inform the council that the property has been re-possessed and claim the Class L exemption **

*
From April 2013 the Class C is being removed and being replaced with a discount at the local authorities discretion.

* *
From April 13 the council tax liability will rest with the mortgage company for a repossessed property and not the legal owner (e.g you).

Sunshine2114

Thanks .. So hopefully if we vacate in feb we should get a class c for 6 months ? Then hope NRAM r quick to reposess .. However if they r as slow as I'm led to believe ewe woud have to pay council tax at a discounted rate till we get notification from NRam they own the proerty then inform them to get the class L... So worst case I could be liable fir 6-12 months counil tax .. But could this be added to my BR

CIS

we should get a class c for 6 months ?

It will depend on the local authority - until 31st march 2013 they have to apply the full exemption. From that date they can award any rate of discount they wish as the Class C exemption is being done away with and replaced with a discount for which the local authority can set the rate and duration.

CIS

So worst case I could be liable fir 6-12 months counil tax .

Unless you re-possessed before 1 April 2013 then you would only be liable until the date the property was re-possessed, from 1 April 2013 it will be the mortgage companies job to apply for any Class L exemption.

If the property was re-possesed before April 2013 then its six and two threes - you would be liable until April 13 but you could claim the Class L. From April 13 the liability would change to the mortgage company.

Sunshine2114

Thanks ... Highly unlikely as we have to start the process .. We are moving in feb so we will still pay CT at the rate they decide :-( .. However if we chose not to ay this an fall in arrears dan this b added to our BR? We will be filing for BR in June as we have to be discarded from an IVA first which takes 3 months ...

CIS

However if we chose not to ay this an fall in arrears dan this b added to our BR?

It can be but if only you have reached the stage at which you have lost the right to pay by instalments before the bankruptcy/

Sunshine2114

Sorry if I'm being dim ,.. What dies that mean ? I'm moving out in feb and would rather not pay counil tax on this property when we leave and add this to my BR as a debt ... BR is poss June ... However our new home we move to in feb is in same town and under same council will this matter

CIS

Sorry if I'm being dim ,.. What dies that mean ?

You can't include the balance in bankruptcy unless you have lost the right to pay by instalments due to defaulting on the required payments.

I'm moving out in feb and would rather not pay counil tax on this property when we leave and add this to my BR as a debt ... BR is poss June

By June the balance may have been issued to a bailiff.

Sunshine2114

Cheers fr your help .. We've worked out that we pay £110 by DD over 10 months so gonna ask to ay over 12 so be £97ish n hope NRAM are quick .. After our SOA in BR we have approx £120 disposable income so will use this to pay CT n OR. Will get what's left.. Till we've got rid of property all together .. So muc stress but hey we mced out before kicked out