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

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Comments

  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    The CT bill is the symptom of the real problem, not the cause.

    Even business premises have to pay electricity bills... unless they're stealing the electricity off somebody else, due to a shared meter.
  • sal_III
    sal_III Posts: 1,953 Forumite
    Fifth Anniversary 1,000 Posts
    Unless you are dead set on getting that property - walk away. Sounds like a giant can of worms, if the property is not on the relevant databases, chances are there is no planing permission for the conversion from commercial to residential use.

    If there is no CT bill how is the refuse collection handled?
    Is the address on the post office / open reach DBs? If not you can expect no end of headache with deliveries and utilities supply
    If by the sound of it the current owner is stealing electricity from someone, the line can be cut without notice and you might spend unknown amount of time resolving the issue.

    Last but not least red flags with future buyers/lenders when you decide to move out.
  • tom9980
    tom9980 Posts: 1,990 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've helped Parliament
    sal_III wrote: »
    Unless you are dead set on getting that property - walk away. Sounds like a giant can of worms, if the property is not on the relevant databases, chances are there is no planing permission for the conversion from commercial to residential use.

    If there is no CT bill how is the refuse collection handled?
    Is the address on the post office / open reach DBs? If not you can expect no end of headache with deliveries and utilities supply
    If by the sound of it the current owner is stealing electricity from someone, the line can be cut without notice and you might spend unknown amount of time resolving the issue.

    Last but not least red flags with future buyers/lenders when you decide to move out.

    And a large bill to get connected to the grid.
    When using the housing forum please use the sticky threads for valuable information.
  • I’m more concerned as to why they told you?
  • sal_III
    sal_III Posts: 1,953 Forumite
    Fifth Anniversary 1,000 Posts
    I’m more concerned as to why they told you?
    By the sound of it, the vendor might be stupid/gullible enough to tout it as a "perk" of the property. Who doesn't like free stuff...
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Call up the council, water & electric companies and ask questions - just to re-assure if you do intend on buying it...or grass them up - up to you.
  • Exodi
    Exodi Posts: 4,230 Forumite
    Eighth Anniversary 1,000 Posts Cashback Cashier Chutzpah Haggler
    I purchased a property in which it became apparent that the previous owners hadn't paid for water for the last decade.

    I just moved in, informed them of my move in date and gave them meter readings.

    A letter did come through from them for the ex owner (with the boldest and reddest text you've ever seen) which I gave to the estate agent.

    No bill will pass to you if you inform the council/utility providers of your move in date and any readings...
    Know what you don't
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Post a link if you want someone to help investigate the history of the place

    planning and building regs stuff may be on-line.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    As far as council tax is concerned the fact that it does not have planning permission (or any other legal permissions) is immaterial - if it is being used for residential use then it should be banded as such and council tax paid.

    You would not be responsible for any council tax prior to the date on which you took a tenancy/moved in.

    As mentioned above it appears that they've probably dodged a lot more, it's rare that these things are accidental.
    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.
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