Want to buy a property, owners just told me they don't pay council tax and electricity

bono178

Hi all,
A bit of a red flag, I went to see a property I'm interested in buying and learned that the owners haven't paid electricity and council tax ever.
That sounds like a big red flag!
I'm imagining that any debt they will have accumulated will be passed down?
They said they never received a bill and didn't chase it up.
Any insight in this situation?
Thanks

worried_jim

bono178 wrote: »

Hi all,
A bit of a red flag, I went to see a property I'm interested in buying and learned that the owners haven't paid electricity and council tax ever.
That sounds like a big red flag!
I'm imagining that any debt they will have accumulated will be passed down?
They said they never received a bill and didn't chase it up.
Any insight in this situation?
Thanks

Of course no debt will passed to you! When you move in you contact the council tax dept and let them arrange your bill. Same for utilities, electrics contact MPAS to find out your supplier.

https://www.uswitch.com/gas-electricity/guides/who-supplies-my-electricity-and-gas/

xylophone

I'm imagining that any debt they will have accumulated will be passed down?

I don't see that their liability can become yours.

Presumably you would ensure that the meters were read and the readings advised to the companies concerned before completion.

You would also advise the council on completion that you were the new owner/occupier.

Surely it would be up to the utility companies and the council to chase the previous owners for money they owed?

G_M

No. Your liability fo he CT and utilities will start on the day you Complete your purchase.


You ring them on that day, give them your name etc and request a new account in your name, and give them the meter readings.


Take a photo of the meter(s).


Do you know why the sellers have never paid? Is it
* because they are broke/stupid/criminal?, or
* because the poperty does not exist on the relevant databases, so they are never being sent a bill?

bono178

Thanks for these reassuring messages
I believe that they are not paying because the property doesn't seem to be existing on the relevant databases...
They managed to get water to their property, so called suppliers, installed a meter and pay the bill. Electricity was here when they arrived and never got a letter about it.

Robin9

My concerns would be that if they haven't paid council tax or electricity what else have they turned their back on or ignore - maintenance, decoration, other debts ...............

OP - look at other properties

davidmcn

bono178 wrote: »

Thanks for these reassuring messages
I believe that they are not paying because the property doesn't seem to be existing on the relevant databases...
They managed to get water to their property, so called suppliers, installed a meter and pay the bill. Electricity was here when they arrived and never got a letter about it.

What sort of property is it? Is it possible it's never had planning consent to be used independently as a dwelling? Do they have their own electricity connection, or are they tapping into somebody else's supply?

bono178

it's an old commercial property that they converted in live/work unit. They have their own electricty connection.

xylophone

it's an old commercial property that they converted in live/work unit.

With planning permission? Have you checked?

Marvel1

It won't be passed to you, however I would keep looking, if they can't do the basics, then what else is going to crop up, too much hassle to sort out.

edgex

bono178 wrote: »

it's an old commercial property that they converted in live/work unit. They have their own electricty connection.

'They converted'
uh oh!

That's why there's no Council Tax, as it's a commercial premises & would be subject to Business Rates.

Either;
pull out now
or, if your still thinking about going ahead, in writing state that you must have; planning permission documentation, building regs documentation, change of use documentation, etc etc, all within 7 days. If you do get ALL of those, then have another think. (If you don't get anything, or they say they don't have them, inform the council)