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

AdamDavidson

My mum passed away in December 2022 and left me her retirement flat as part of her estate, which was a 70% owned leasehold retirement flat.

I've been unable to sell since it went on the market in May 2023, despite reducing the price in steps from £80K to now £55K.

Since then the Housing21 management fees have risen 20% each year and are now at £4235.40/year. They rejected my appeal for an exception to the lease to allow me to sublet it and also refused to buy the lease back off me. They are a charity, and the flat is classed as affordable housing, so they are essentially denying access to low income people who might be in need of somewhere to live, forcing it to remain unoccupied.

From December 2023, Reading Borough Council started charging council tax at 200% of the normal rate, classing it as a 'Long Term Unoccupied Premium'. They rejected my appeal for a reduction.

The lease terms will not allow the flat to be sublet it, and I'm too you to live in it (less then 55 years old).

I've contacted John Redwood (my MP), the LibDem opposition candidate, and the BBC, but not had any luck so far. My solicitor says it's unlikely they can do anything legally to help as the leasehold is binding (even though I never signed it, I inherited it).

In summary I'm paying £8K/year for a flat I can't sell, rent or live in.

Any suggestions?
Thanks in advance.

user1977

Surely it’s the estate that’s liable, not you personally? I appreciate that doesn’t help much, but you don’t need to pay any more than the estate is worth.

Brie

I wonder if giving it is considered affordable housing your council could do anything about it.  It's a well known fact that council housing is in massive short supply so they may be well motivated to help you resolve this.  

AdamDavidson

That is good to know. The estate was essentially this flat and a very small amount of cash. So hopefully you're saying if I don't pay the council tax or the leaseholder management fees that eventually it will consume all the estate value and then I can walk away from it?

se2020

The £8k (and any other fees) should be coming out of the estate of the deceased not from your pocket.

Unfortunately it won't be particularly easy to sell, as you have found out there are various problems/issues with flats like this one.

If you reduce the price enough sooner or later somebody will buy it.
Or try some direct marketing,  local (to the flat) facebook groups sometimes work well.
Also old fashioned methods like cards on noticeboards hit the target age group. 
Maybe pop some flyers through the letter boxes of any local bungalows for sale, or any other houses that look like they contain old people. 

AdamDavidson

Brie said:

I wonder if giving it is considered affordable housing your council could do anything about it.  It's a well known fact that council housing is in massive short supply so they may be well motivated to help you resolve this.  

Thanks Brie, I guess that's why they are charging me 200% to incentivize me to rent it out, even though I legally can't. I will call them again though and see if they can put pressure on Housing21 from their end. I've had another experience with Wokingham Council where there was a 4 bed detached house available for free but they didn't want it so I'm not 100% sure they really care about this.

AdamDavidson

Thanks @se2020 . I've come to the realization that even if I can sell it, I'll have the guilt that I'm just passing this problem on to another unsuspecting elderly person and their respective family as well. Direct marketing would bring this home even more than the estate agent I'm currently going through. I'm going to keep reducing it until it gets to zero, or even negative in the hope I can get rid of it.

propertyrental

Was there a will? Who is Executor? If no will, who is Administrator?

You do realise you can decline to act in either role?

And you can decline to accept the inheritance?

Albermarle

Since then the Housing21 management fees have risen 20% each year and are now at £4235.40/year.
. They are a charity, and the flat is classed as affordable housing, 

Not sure charges at this level on a £50K flat, makes it affordable......

AdamDavidson

Hi @propertyrental - I did not know this, thanks for the info. There was a will and I am the executor. Can I decline the inheritance at this point, even though it's 18 months after my mum's death? Can I just decline the property part, or would I have to decline the small cash amount as well do you know? i.e. is it all or nothing?

AdamDavidson

Hi @Albermarle - This is exactly the problem. The monthly costs are too high for the type of person who might buy this 70% leasehold. There are 4 flats, in the block of 19 flats, up for sale currently and some have been on the market for years. It feels like a scam that the council are now taking advantage of by doubling the council tax for those properties, even though the families that inherited them are in the same situation as me and can't sell, sublet or live in them. Housing21 get their money. Reading Borough Council get 2x their money. 4 people are left homeless.