200% Council Tax for inherited retirement flat I can't sell, sublet or live in (costing £8K/year)

housebuyer143

AdamDavidson said:

@housebuyer143 - I was paying the fees out of the residual cash that my mum left me, which I guess is the estate, is that right? I'm getting the sense that I should add up all those payments and once it reaches the amount of cash I received then I should tell Housing21 and Reading Borough Council that there is no more cash and they will have to wait for the sale? If the sale doesn't happen, or doesn't cover the outstanding debts then the estate is bankrupt but I wouldn't be liable for any residual debt. Is that right? 

Yes I believe that's right. Once the money that the estate had is gone then all that's left is the property, so they just have to wait for the property to sell to get it. If it's not in your name at the land registry which I imagine it isn't as you can't own it then it's still your mum's and any debt is the estates and, not yours. 

I don't think you can be liable for debt owing to the estate as it's not your debt. Just make sure the council tax etc is not in your name.

On-the-coast

if they are a charity, as you’ve stated, it might be worth going to the charity commission website and downloading / viewing their purpose statement - in case their actions in this case are not in accordance with that statement. There needs to be some sort of public good involved in charitable aims - you can then ask them how your case satisfies those legal obligations.  If you really wanted to you could write a letter to each of their trustees. 

AdamDavidson

housebuyer143 said:

AdamDavidson said:

@housebuyer143 - I was paying the fees out of the residual cash that my mum left me, which I guess is the estate, is that right? I'm getting the sense that I should add up all those payments and once it reaches the amount of cash I received then I should tell Housing21 and Reading Borough Council that there is no more cash and they will have to wait for the sale? If the sale doesn't happen, or doesn't cover the outstanding debts then the estate is bankrupt but I wouldn't be liable for any residual debt. Is that right? 

Yes I believe that's right. Once the money that the estate had is gone then all that's left is the property, so they just have to wait for the property to sell to get it. If it's not in your name at the land registry which I imagine it isn't as you can't own it then it's still your mum's and any debt is the estates and, not yours. 

I'm so glad I posted this on this forum. You guys have been great. I really appreciate it. There is no money left in the estate so I've told Reading Borough Council and Housing21 they can't have any more money and to wait for the sale to go through. Such a relief. £8K/year is a lot of money.

AdamDavidson

On-the-coast said:

if they are a charity, as you’ve stated, it might be worth going to the charity commission website and downloading / viewing their purpose statement - in case their actions in this case are not in accordance with that statement. There needs to be some sort of public good involved in charitable aims - you can then ask them how your case satisfies those legal obligations.  If you really wanted to you could write a letter to each of their trustees. 

They describe themselves this way "Housing21 is an exempt charity":
www.housing21.org.uk/about-us/how-we-are-regulated/

I'm not sure I know the distinction between an "Exempt Charity" and a "Charity". I will see if I can contact the trustees though if there are any. Thanks.

p00hsticks

AdamDavidson said:

On-the-coast said:

if they are a charity, as you’ve stated, it might be worth going to the charity commission website and downloading / viewing their purpose statement - in case their actions in this case are not in accordance with that statement. There needs to be some sort of public good involved in charitable aims - you can then ask them how your case satisfies those legal obligations.  If you really wanted to you could write a letter to each of their trustees. 

They describe themselves this way "Housing21 is an exempt charity":
www.housing21.org.uk/about-us/how-we-are-regulated/

I'm not sure I know the distinction between an "Exempt Charity" and a "Charity". I will see if I can contact the trustees though if there are any. Thanks.

I do know that an exempt charity is one that doesn't need to be registered with the Charity Commission, but I don't know what or who determines whether a charity classifies as  exempt or not  

Flugelhorn

AdamDavidson said:

housebuyer143 said:

AdamDavidson said:

@housebuyer143 - I was paying the fees out of the residual cash that my mum left me, which I guess is the estate, is that right? I'm getting the sense that I should add up all those payments and once it reaches the amount of cash I received then I should tell Housing21 and Reading Borough Council that there is no more cash and they will have to wait for the sale? If the sale doesn't happen, or doesn't cover the outstanding debts then the estate is bankrupt but I wouldn't be liable for any residual debt. Is that right? 

Yes I believe that's right. Once the money that the estate had is gone then all that's left is the property, so they just have to wait for the property to sell to get it. If it's not in your name at the land registry which I imagine it isn't as you can't own it then it's still your mum's and any debt is the estates and, not yours. 

I'm so glad I posted this on this forum. You guys have been great. I really appreciate it. There is no money left in the estate so I've told Reading Borough Council and Housing21 they can't have any more money and to wait for the sale to go through. Such a relief. £8K/year is a lot of money.

Good - glad you have done this - this may encourage them to find a solution

AdamDavidson

An update to this. It sound like Reading Borough Council will accrue (not waive or reduce) the 200% council tax as a debt until a sale can be made (only suggested to be on the phone, nothing formal yet). Housing21 said they would have to foreclose on the property if the management charges weren't paid, meaning this asset would then be worth £0. It looks like I might be out of luck here. I've reduced the price again to £50K (started at £80K in May 2023) and I'll keep lowering in the hope I can get a quick sale before foreclosure happens. It was my mum's life savings but at least it's not going to cost me anything at this point. Thanks again for everyone's help here.

GDB2222

You have not said what other comparable properties are priced at, but I would suggest that you take a deep breath and cut the price to make the flat cheap compared to the rest.

For the right person, the hefty charges are probably acceptable, as they may include social spaces within the building and maybe a warden. So, I would not worry about the buyers taking on the burden. 

Can I ask whether the flat is still furnished?

AdamDavidson

The other flats are ground floor, which apparently sell better than my mum's flat, which was first floor. The other flats are in the £70K-£80K range. I just need a sale before they foreclose or I'll get nothing. I may only have a few months at best.

AdamDavidson

The flat is unfurnished because I cleared everything out in advance of a sale. Are you suggesting there is some advantage to furnishing it with respect to council tax?