Annex Council Tax/ Landlord Dilemma

[Deleted User]

Hello all,
I am in a quandary that is causing me some distress. I started renting an annex back in February this year. It is a self-contained unit in the landlord's back garden. The ad advertised it as 'bills included' and so I pay a lump sum to the LL every month. However, through reading other posts on this forum, I realised that, as a self-contained unit, it would likely be liable for its own council tax. I am aware the LL pays council tax with a 25% discount (as a single parent). When I dug a little deeper I realised the following:
* The annex is not registered on the land registry (indeed, my post goes straight to the LL as opposed to this having a separate address).
* The LL is not registered as a LL.
* It seems unlikely that planning permission was granted for the annex. I have looked for the address and there is planning permission for a detached garage.

I imagine some might say I should tell the landlord to register etc. but I believe she will be aware of this, having been a LL for some time and is choosing not to do things correctly. She is hardly going to do that as a result of my encouragement if she hasn't until now, especially when it involves her registering as a LL AND registering the property.

I also don't want to move. I have had so many issues with houses in the past and have finally found somewhere I like and feel settled. However, I realise that by proxy, I am not doing things correctly, and this bothers me (hence writing at 4am). I would rather be paying council tax and doing the right thing - I would rather live with a clear conscience than the extra £100 a month (or however much it comes to). 
Please could you advise as I can't see a solution to this. If I approach the LL about it, she may well ask me to leave and find someone less problematic who won't question these things, and I would much rather maintain my residency here. Help would be much appreciated.

anselld

Planning and valuation are separate issues.  If planning find out there is a breach they may serve enforcement notice against self contained occupation, resulting in your eviction.  If valuation find out they may give it a separate valuation, backdated to when it was created, resulting in you being liable for Council tax from the start of your tenancy.

It is difficult to see how these risks can be mitigated unless you can persuade the Landlord to declare to the authorities (which would in any case make you liable for Council Tax).

Does the rent you pay stack up with a normal market rent for that size property including bills and Council Tax?   Ie, are you paying the Landlord an element for Council Tax which they are just trousering?  Or can you afford to put an amount of Band A Council tax aside each month in case the Council come knocking and then keep your head down?

[Deleted User]

anselld said:

Planning and valuation are separate issues.  If planning find out there is a breach they may serve enforcement notice against self contained occupation, resulting in your eviction.  If valuation find out they may give it a separate valuation, backdated to when it was created, resulting in you being liable for Council tax from the start of your tenancy.

It is difficult to see how these risks can be mitigated unless you can persuade the Landlord to declare to the authorities (which would in any case make you liable for Council Tax).

Does the rent you pay stack up with a normal market rent for that size property including bills and Council Tax?   Ie, are you paying the Landlord an element for Council Tax which they are just trousering?  Or can you afford to put an amount of Band A Council tax aside each month in case the Council come knocking and then keep your head down?

Thank you for your response. No, the rent is cheaper than the market average. It is in a remote village, which may explain it to an extent, but I'm pretty sure the LL isn't using a portion of it for CT. I can afford to put an amount aside for CT each month but I'm worried I'd be in more serious trouble. I'd obviously prefer to pay the CT upfront but this doesn't seem to be a possibility.

SpiderLegs

Where is your post going?

[Deleted User]

SpiderLegs said:

Where is your post going?

Straight to the LL's house.

anselld

Deleted_User said:

anselld said:

Planning and valuation are separate issues.  If planning find out there is a breach they may serve enforcement notice against self contained occupation, resulting in your eviction.  If valuation find out they may give it a separate valuation, backdated to when it was created, resulting in you being liable for Council tax from the start of your tenancy.

It is difficult to see how these risks can be mitigated unless you can persuade the Landlord to declare to the authorities (which would in any case make you liable for Council Tax).

Does the rent you pay stack up with a normal market rent for that size property including bills and Council Tax?   Ie, are you paying the Landlord an element for Council Tax which they are just trousering?  Or can you afford to put an amount of Band A Council tax aside each month in case the Council come knocking and then keep your head down?

Thank you for your response. No, the rent is cheaper than the market average. It is in a remote village, which may explain it to an extent, but I'm pretty sure the LL isn't using a portion of it for CT. I can afford to put an amount aside for CT each month but I'm worried I'd be in more serious trouble. I'd obviously prefer to pay the CT upfront but this doesn't seem to be a possibility.

You wont be in trouble if you can pay the Council Tax demand if/when it arrives. 

Have you checked if the Annex is banded by the VOA (or scottish / welsh equivalent since you mention Landlord registration I presume you are not in England).  CT Banding is not necessarily the same as Land Registry title.

[Deleted User]

anselld said:

Deleted_User said:

anselld said:

Planning and valuation are separate issues.  If planning find out there is a breach they may serve enforcement notice against self contained occupation, resulting in your eviction.  If valuation find out they may give it a separate valuation, backdated to when it was created, resulting in you being liable for Council tax from the start of your tenancy.

It is difficult to see how these risks can be mitigated unless you can persuade the Landlord to declare to the authorities (which would in any case make you liable for Council Tax).

Does the rent you pay stack up with a normal market rent for that size property including bills and Council Tax?   Ie, are you paying the Landlord an element for Council Tax which they are just trousering?  Or can you afford to put an amount of Band A Council tax aside each month in case the Council come knocking and then keep your head down?

Thank you for your response. No, the rent is cheaper than the market average. It is in a remote village, which may explain it to an extent, but I'm pretty sure the LL isn't using a portion of it for CT. I can afford to put an amount aside for CT each month but I'm worried I'd be in more serious trouble. I'd obviously prefer to pay the CT upfront but this doesn't seem to be a possibility.

You wont be in trouble if you can pay the Council Tax demand if/when it arrives. 

Have you checked if the Annex is banded by the VOA (or scottish / welsh equivalent since you mention Landlord registration I presume you are not in England).  CT Banding is not necessarily the same as Land Registry title.

Thank you. Yes, I have checked both. The annex isn't banded on the website (you're right, I'm in Scotland). There is only one property listed at the address, which is the main house the LL lives in.

carebabe

If you’re so uncomfortable with the situation the best option is to find somewhere else asap. As others have said you won’t be in trouble as you’ve paid rent on bills included basis.  Hopefully you have written proof of that.  

Niv

I have had so many issues with houses in the past and have finally found somewhere I like and feel settled.
Sounds like you are about to self destruct the above statement if you report your LL. It is of course your right to do so but I would expect to get evicted in due course. You also risk destroying your relationship with your landlord and depending on how they react you could find things like post going missing etc. until you leave.

Personally I would save an amount equal to the council tax potentially due so it can be paid if the issue arises. If you feel that uncomfortable about the situation I would look for somewhere else to live and move out. If you then chose to report the landlord once you have left is up to you.

[Deleted User]

carebabe said:

If you’re so uncomfortable with the situation the best option is to find somewhere else asap. As others have said you won’t be in trouble as you’ve paid rent on bills included basis.  Hopefully you have written proof of that.  

Yes, it's more of a moral issue than anything, but equally, I am very comfortable here, I just wouldn't have chosen this if I was aware it was so underhand. I have the original ad for the property which states bills are included. I have no paperwork or contract, other than text message exchanges and the monthly amount coming out my bank. I get on very well with my LL and she mentioned a while ago that if I wanted to be on the electoral roll, I would need to pay the extra 25% on her council tax that she currently gets as a single person discount. However, that would be for the main house and I don't live there.

[Deleted User]

Niv said:

I have had so many issues with houses in the past and have finally found somewhere I like and feel settled.
Sounds like you are about to self destruct the above statement if you report your LL. It is of course your right to do so but I would expect to get evicted in due course. You also risk destroying your relationship with your landlord and depending on how they react you could find things like post going missing etc. until you leave.

Personally I would save an amount equal to the council tax potentially due so it can be paid if the issue arises. If you feel that uncomfortable about the situation I would look for somewhere else to live and move out. If you then chose to report the landlord once you have left is up to you.

Thank you. I certainly don't want to report the LL, I don't feel it's up to me to do so. She has been operating this way for years and that's her responsibility - I wouldn't want to affect her life like that. However, I just want to do the right thing and the situation makes that pretty difficult! I am overly conscientious and that is causing a bit of angst. I agree that putting some money aside in the eventuality the council get in touch is a good idea.