Unoccupied CouncilTax

reefs

Thanks for all your input here. There is a lot to consider here.

The house is mine be alone, we were supposed to sell both our properties and get a house togther when we married. I moved in with my husband and found we both had negative equity issues.

My house was to be sold, then the plan was revised to renovate and place it on the rental market, ride out the negative equity issue.

Mortgage lender gave us a an agreement to rent the property for up to 3 years. It was rented in 2012, but the rental income didn't cover the costs, never mind the renovation costs.

At the end of 2012, after 1 year of trying to rent the property, the rental idea was abandoned and the property was placed on the sales market.

We sought help to sell the property, but the banks refused to help, hence continuing to seek help and guidance from various sources.

I entered a legally binding agreement with mortgage lender and have always paid.

The council was notified the property was empty, and there were no issues.

The council never asked for any council tax while the property was empty.

In 2015, after 2 years of the property empty,and failing to sell. the council sent a council tax demand, backdated for two years.

I then learned the council was able to now charge unoccupied council tax from 2013 and decided to do so, back dating the charge for two years, asking for an immediate payment.

I complained about the sudden charges. Explained my financial situation, and requested help from the council.

I did not want the property to remain empty, asked the council for help, reducing / writing off the debt, and suggestions on how to resolve the impossible situation I was in. There was only a few months left on the permission to let from the mortgage advisor, not enough for a tenancy.

I could not remortgage, as the property was in negative equity.

I could not sell at a loss as I couldn't pay the mortgage defecit. I enquirerd loans, but it us against the terms to take out a loan to pay debt (This doesn't qualify as debt consolidation) nor could I get any further loans, or afford a loan sufficient to cover the defecit.

The only option was to keep paying the mortgage, which was very difficult, but I managed. So the best advice has always been keep paying, pay off debts, start saving, then when there is enough money to pay the mortgage deficit, reduce the price further and get rid.

This was working. My head is just above the water. Every month my debt is a small step closer to being paid off.

This will take years, has taken years, and will likely still take years.

The council did not make any further demands, did not follow up on my complaint.

Almost a year later, another backdated bill was sent, asking for immediate payment.

The whole process repeated. Council did not respond, no further correspondence.

Another year later, another backdated bill. Now a threat of legal action if not paid within 7 days.

I am on track to pay my debts, the councils demands will tip me over the manageable edge. They will also add years to my plans to get out of debt, in fact they will add to the debts every year, making this impossible. Backdated and future payments will add to the debts faster than I can pay them off.

seven-day-weekend

Off-topic slightly. I am rather amused to see BarryBlue getting some stick, normally he is one of the first to give it to me. If I were a Hindu or Buddhist, I would say it was Karma. As I am a Christian, I forgive him

booksurr

BarryBlue wrote: »

Still so many assumptions and so few facts. You are missing one huge one - there is no CGT liability under any circumstances in our situation. All been researched already, you see.:p

Sorry to disappoint you, but thanks for your interest.:wave:

so your "quite legal" should have said, in our case, due to some very special circumstances which are possibly unique to us, we think we are legal. Not quite what you said is it?

as your preference is to hide "facts" why not explain why a married couple who own multiple property will have no CGT liability so other people can be informed and learn from you?

marksoton

reefs wrote: »

I complained about the sudden charges. Explained my financial situation, and requested help from the council.

I did not want the property to remain empty, asked the council for help, reducing / writing off the debt,

I'm at a loss as to what you expect the council to do?

They seem to be the least of your debt problems.

You really need to refocus and forget about the CT issue. You have bigger debt fish to fry.

reefs

The Valuation Tribunal Service appears to be the correct avenue, at least for now.

This issue has been escalated to them, they have provided good advice, and stopped the legal proceedings.

We are now back in a negotiations.

Sound advice from a reply in this thread has been recommended by them also.

Discretionary Relief under Section 13A. This allows the council to use their discretion and write off any council tax owed. If the council decline to grant you Discretionary Relief, you can appeal their decision to us.

Miss_Samantha

You should have directly ask how to avoid paying the tax you fairly owe whilst keep your 2 properties....

marksoton

reefs wrote: »

The Valuation Tribunal Service appears to be the correct avenue, at least for now.

This issue has been escalated to them, they have provided good advice, and stopped the legal proceedings.

We are now back in a negotiations.

Dear lord. I've never known a bigger elephant in the room. Given the info you've given CT is the least of your problems.

CIS

reefs wrote: »

The Valuation Tribunal Service appears to be the correct avenue, at least for now.

This issue has been escalated to them, they have provided good advice, and stopped the legal proceedings.

We are now back in a negotiations.

Sound advice from a reply in this thread has been recommended by them also.

Discretionary Relief under Section 13A. This allows the council to use their discretion and write off any council tax owed. If the council decline to grant you Discretionary Relief, you can appeal their decision to us.

Remember though that the council can resume action at any point - the Valuation Tribunal cannot stop them taking legal action and they don't have to halt it whilst any appeal is ongoing.

vqmismatch

I'd offer the council the chance to put a charge on the house so the council tax debt can be paid when you eventually sell.

Provide them with a full and detailed statement of your outgoings and income so they can see you are genuinely unable to pay at present, and offer them a decent interest rate with the charge on the property. Don't sell and it just racks up every year.

Bluebirdman_of_Alcathays

vqmismatch wrote: »

I'd offer the council the chance to put a charge on the house so the council tax debt can be paid when you eventually sell.

Provide them with a full and detailed statement of your outgoings and income so they can see you are genuinely unable to pay at present, and offer them a decent interest rate with the charge on the property. Don't sell and it just racks up every year.

Why would the council go for that? Even when it sells, the security is clearly garbage. They are more likely to get their money by just taking the OP to court.