Council want their pound of flesh

Sad__Sam

Hi I’m hoping someone more knowledgeable than me can offer advice, or point me in the right direction.

I own a flat that I rented out, tops up my disability.

In August 2016 the tenant had an accident that resulted in a fire and she was hospitalised for months.

The site manager took her keys and she was told they would deal with everything, which she relayed onto me.

The Managing Agent received nearly £20,000 from the insurance company and has done nothing.

I have just received a council tax bill for nearly £6,000.  They say this property slipped though their system.

I was under the illusion that the property had been condemned by the fire brigade, the kitchen is gone, windows in the kitchen and living room need replaced, the site manager boarded them up, power to the property is cut off as the fuse board was in the kitchen.

Basically I'm left with a mortgage to pay, a burnt out property, a managing agent that has taken the insurance money & a council that wants their pound of flesh.

I tried calling the council, the lady was very nice, said she would send an email, so that I could provide evidence.  I haven’t received that email.

Does anyone know of any exemptions, as Councils seem to have their backs covered?

 

Thank you in advance.

MalMonroe

Hi, I don't understand why the insurance wasn't in your name, nor why the money didn't come direct to you.

What you are saying is that someone at the Management Company has stolen £20k from you.

I can't believe this has been dragging on for five years!

I think you need to phone someone at Citizens Advice, it's free. https://www.citizensadvice.org.uk/

I'd be contacting my insurance company asap to ask why the £20k was sent to the Management company and not me, as the owner of the property.

I'd also be advising that Management Company that the police will be involved if they don't return my money tomorrow, preferably sooner. Plus interest. Five years, though, who knows if there's anything left?! You could have asked them to send you photos of the damage. And then they could have got builders in to try to sort things out. I do hope you are not still paying them.

Will the tenant be able to return? Doesn't sound like it, so much time having passed. Have you lost out on rent in the meantime? Do you have any insurance to cover you for that kind of situation? 

The £20k you are owed should have paid for the refurb at the time.

That council tax bill is extortionate and needs explaining to you properly but if it's in your tenant's name then it isn't your responsibility as you are the landlord, not the occupant.

If it IS in the tenant's name (I hope it is) then she or her representative may be able to claim exemption if she was in hospital for a long time and could not return. Try phoning your council again and asking to speak to someone about council tax responsibility - it isn't yours if your name isn't registered to pay CT.

I'm struggling to know how on earth your disability has been 'topped up' for the last five years since there cannot have been any rent forthcoming. 

I do hope you manage to get this sorted out, given that so much time has elapsed.  Main things to sort for the time being -

Getting your money back.
Sorting out the Council Tax mess.   
Getting a new Management Company.
 
Good luck.

theoretica

Is the flat leasehold so buildings insurance was arranged by the freeholder?  In which case I expect your claim would be against them not for the cash, but for not making repairs.  What does your lease say about their responsibilities?

peb

As Theoretica says.  The lease will say who is responsible for insurance and it looks like it's the Management Company.  Five years seems odd - you need to peruse them.  You will have entitlements if the property is not habitable.

You would be liable for the council tax but I don't know how it works when the property isn't habitable.

CIS

Sad__Sam said:

Does anyone know of any exemptions, as Councils seem to have their backs covered?

 

Thank you in advance.

It depends on the exact situation - there's not enough information in your post for anyone to say anything other than the basics about liability and any backdating of the charge etc.

You have 4 real issues to sort- liability, backdating, entry to the valuation list and any discount or exemption. In these cases it's either very easy to sort or ridiculously complicated, there's rarely little in the way of middle ground. If you don't need a valuation tribunal, then count yourself lucky.

Sad__Sam

Hi MalMonroe

Thank you for your reply.

Our Lease stipulated that the buildings insurance would be sorted by the freeholder.

The Managing Agent works for the freeholder.

I tried contacting the insurer, nothing

I went to the Financial Ombudsman, where I got my information from.  As the insurance was arranged by the freeholder it is paid to them/their representative.

I have tried the police, civil matter.  They don’t care about blue collar fraud.

As the Managing Agent is RICS registered, I went to them, they will only take action, if I take the matter to Court and win.

I went to action fraud, nothing.  Insurance fraud is only investigated if the fraud is by a claimant!

 

Yes, I have lost years of rent and the tenant is long gone.  My options seem to be, sue the freeholder, £10k minimum legal fees.  Find £10k.

Arrange to have it fixed myself, £15-20k. Find £15-20k, the reason for insurance.

 

I sent photos to the managing agent when the tenant moved out, he refuses to reply to my communications.

 

To get a new managing agent I need to take the matter to the First Teir Tribunal, who for such a request demand the application is dealt with by a Solicitor, there’s another £10k legal fees+.

 

What a broken system.

Sad__Sam

Hi CIS

What additional information do you need to assist.

 

The property is so badly damaged, it is uninhabitable.

There is no power to the property, hence no: heating, hot water, cooking or lighting facilities.  The fuse board is burnt out, is is in the kitchen where the fire started.

Windows in the kitchen and living room were blow out by the fire & have not been replaced.

The kitchen is gone. The ceiling collapsed

The bathroom and hallway are a mess and will require replacing.

kaMelo

In the lease what is the freeholders obligation to you regarding upkeep of the property?

TELLIT01

I've found this which indicates that council tax is still payable in most circumstances, even when a property is uninhabitable.

https://beta.bathnes.gov.uk/council-tax-and-unoccupied-properties

Loza2016

I bought an uninhabitable property last year. Local council would only give exemption for 12 months. Next month even though it’s still a building site I will be expected to pay 200% council tax due to it being classed as I second home. I currently rent the home I live in. 

sammyjammy

I'd say council tax is the least of your problems, you really need to sort out the insurance issue, what reasons did they give you for not carrying out the works?  It seems to me there must be more to this.