Renting a basement flat: Council Tax and Rent Offers.

suetonius

Hi everyone, 

I am currently looking to rent my first flat. I found a property in the area that I like. It's a very well to do area and quite popular as is close to town. Apologies if I don't know what I am talking about, hence why I am here for advice.

It is a one bedroom basement flat. It is essentially a converted basement of a large victorian house. I assume it was previously a servant's quarters. 

Tiny kitchen, one large bedroom, a sitting room, and bathroom. Outside the door is a little patio, but the listing doesn't list this as part of the flat. There is a staircase within that leads to the main house. It has its own front door, which is round the back of the garden. 
From street view, there is no sign that there is a separate property within the house. Royal Mail has two addresses for the house, a basement flat, and the main address. Looking up the council tax bands, there is only one band, which is for the main house. 

The rent is inclusive of Council Tax, Water, and heating. This would leave electricity and internet to pay for separately. 

I am exempt from council tax due to studying a full time masters programme with my work. So I was going to approach the landlord/estate agent, and ask if they would consider a lower rent as I do not need the Council Tax included. But having read up a bit online, I am under the impression that the landlord, who I assume lives above in the main house, has not declared the flat as a separate dwelling, and so is hoping that his/her council tax bill would cover the basement flat too. 

The flat was first listed in February at £1400 a month. No takers. Then two weeks ago, it was reduced to £1350. Do you think I would have room to offer a lower rent? A studio down the road is up for £900. So I was thinking it would be more like £1100 (wishful thinking!!). A three bed flat nearby is up for £1900 (much nicer inside) 

lincroft1710

The landlord's CT bill will not cover the flat. The flat should have its own CT band and the tenant would be responsible for paying the CT.

AdrianC

Of course you can offer a lower rent... The landlord can decide whether to accept that or keep looking.

As far as the CT goes, it's clearly within the main building's CT, so there's not going to be any wiggle room there for the negotiation. If the main house is occupied by more than one person, the CT for the entire building will not change by you moving in the basement with your exemption. If it's occupied by one person only, the entire building will qualify for 25% single occupant discount - but that's not your problem, that's the landlord's... Water and heating are clearly not separated for the two properties, just a separate electricity meter for the basement. I'd be looking to see if that's actually an official one, or if the landlord has an unofficial one for a spur down to the basement. And, if so, what rate they're (re-)charging...

Whether it should be being let in that way is another question entirely, and - again - not your problem...

lincroft1710

AdrianC said:

Of course you can offer a lower rent... The landlord can decide whether to accept that or keep looking.

As far as the CT goes, it's clearly within the main building's CT, so there's not going to be any wiggle room there for the negotiation. If the main house is occupied by more than one person, the CT for the entire building will not change by you moving in the basement with your exemption. If it's occupied by one person only, the entire building will qualify for 25% single occupant discount - but that's not your problem, that's the landlord's... Water and heating are clearly not separated for the two properties, just a separate electricity meter for the basement. I'd be looking to see if that's actually an official one, or if the landlord has an unofficial one for a spur down to the basement. And, if so, what rate they're (re-)charging...

Whether it should be being let in that way is another question entirely, and - again - not your problem...

As the flat is clearly a self contained unit it should have its own CT band. The LL should not  be assuming that the CT for the main house covers the flat. If a tenant took on the flat on the basis of the rent including the CT, they would be in for a nasty shock if the flat was assessed separately for CT either during or after their tenancy as the assessment could be backdated so they could receive a backdated bill for CT.

AdrianC

lincroft1710 said:

AdrianC said:

Of course you can offer a lower rent... The landlord can decide whether to accept that or keep looking.

As far as the CT goes, it's clearly within the main building's CT, so there's not going to be any wiggle room there for the negotiation. If the main house is occupied by more than one person, the CT for the entire building will not change by you moving in the basement with your exemption. If it's occupied by one person only, the entire building will qualify for 25% single occupant discount - but that's not your problem, that's the landlord's... Water and heating are clearly not separated for the two properties, just a separate electricity meter for the basement. I'd be looking to see if that's actually an official one, or if the landlord has an unofficial one for a spur down to the basement. And, if so, what rate they're (re-)charging...

Whether it should be being let in that way is another question entirely, and - again - not your problem...

As the flat is clearly a self contained unit it should have its own CT band. The LL should not  be assuming that the CT for the main house covers the flat. If a tenant took on the flat on the basis of the rent including the CT, they would be in for a nasty shock if the flat was assessed separately for CT either during or after their tenancy as the assessment could be backdated so they could receive a backdated bill for CT.

If the tenancy states CT is included, hand that bill straight back to the landlord.

NameUnavailable

lincroft1710 said:

AdrianC said:

Of course you can offer a lower rent... The landlord can decide whether to accept that or keep looking.

As far as the CT goes, it's clearly within the main building's CT, so there's not going to be any wiggle room there for the negotiation. If the main house is occupied by more than one person, the CT for the entire building will not change by you moving in the basement with your exemption. If it's occupied by one person only, the entire building will qualify for 25% single occupant discount - but that's not your problem, that's the landlord's... Water and heating are clearly not separated for the two properties, just a separate electricity meter for the basement. I'd be looking to see if that's actually an official one, or if the landlord has an unofficial one for a spur down to the basement. And, if so, what rate they're (re-)charging...

Whether it should be being let in that way is another question entirely, and - again - not your problem...

As the flat is clearly a self contained unit it should have its own CT band. The LL should not  be assuming that the CT for the main house covers the flat. If a tenant took on the flat on the basis of the rent including the CT, they would be in for a nasty shock if the flat was assessed separately for CT either during or after their tenancy as the assessment could be backdated so they could receive a backdated bill for CT.

This. OK the LL is saying that council tax is included but the council won't be going after them, they'll be taking you to court if you fail to pay!

I think there was a thread not too long ago where exactly this situation occurred. Speak to the letting agent about it, they SHOULD know the legal implications of the arrangement.

lincroft1710

AdrianC said:

lincroft1710 said:

AdrianC said:

Of course you can offer a lower rent... The landlord can decide whether to accept that or keep looking.

As far as the CT goes, it's clearly within the main building's CT, so there's not going to be any wiggle room there for the negotiation. If the main house is occupied by more than one person, the CT for the entire building will not change by you moving in the basement with your exemption. If it's occupied by one person only, the entire building will qualify for 25% single occupant discount - but that's not your problem, that's the landlord's... Water and heating are clearly not separated for the two properties, just a separate electricity meter for the basement. I'd be looking to see if that's actually an official one, or if the landlord has an unofficial one for a spur down to the basement. And, if so, what rate they're (re-)charging...

Whether it should be being let in that way is another question entirely, and - again - not your problem...

As the flat is clearly a self contained unit it should have its own CT band. The LL should not  be assuming that the CT for the main house covers the flat. If a tenant took on the flat on the basis of the rent including the CT, they would be in for a nasty shock if the flat was assessed separately for CT either during or after their tenancy as the assessment could be backdated so they could receive a backdated bill for CT.

If the tenancy states CT is included, hand that bill straight back to the landlord.

Doesn't work that way. The council will chase the tenant not the LL. Unless an HMO a tenancy should never include CT.

Jude57

@lincroft1710 is correct. Although my experience in Council Tax recovery is many years ago, one thing does still remain true and that's the hierarchy of liability which in effect says the occupant is liable (with some exceptions, none relevant here). A private contract, in this case a tenancy agreement, does not override the legislation. If @CIS is around, hopefully they can confirm or advise current CTax rules.

CIS

Council Tax liability cannot be excluded or changed via a tenancy agreement. The key relevant issue here is s6 of the LGFA 1992 and that almost alone determines liability.

Should it to be banded as a self-contained dwelling then all the usual rules apply to that dwelling in isolation, as they would to the main house. This means that, should there be a single occupancy of the whole unit, that resident would be liable for the council tax charge and will be the one chased by the council, not the landlord.