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conflicting reports!

On this board everyone seems to be of the same opinion that if you walk away from a mortgaged property ( in negative equity) you still have to pay insurance & council tax, we have now had 4! meetings with the CAB & 2! discussions with NDL & they ALL say the same, "You have moved out, you do not have to pay these bills any longer".

Can someone PLEASE tell us what we should do & what are the implications if we follow the advice of the ADVISERS!?

We are about to file & are very confused, please help.

Comments

  • luvchocolate
    luvchocolate Posts: 3,487 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Home Insurance Hacker!
    If I were you I would check with your local council as they are all different, but I was liable for both these on 2 properties.
  • TheGardener
    TheGardener Posts: 3,303 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I'm no expert here but like you, I think the CAB may be wrong about the council tax - from what I've seen on these boards, you are liable for CT until the house is officially repoed. As for insurance - I would guess you would be liable for that too until repoed. I would talk to the council but I think its a fairly standard rule - this is one for the pro's on the board - try a DM to the Debt Doctor or Fermi?
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You are liable for any council tax charge due on a property until it is sold on or re-occupied however once it is repossessed you can claim a Class L council tax exemption until its sold or occupied.

    Between you leaving the property and it being repossessed a discount can be claimed but the rate depends on the local authority.
    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.
  • JCS1
    JCS1 Posts: 5,347 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If you tell the OR that the property has no insurance, then they will add to theirs.
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