2 Poperties becoming one. Land registry and mortgage issues

angiross

Hi there. 

i have 2 properties next door to each other, only 1 mortgaged. I have knocked the properties into one larger property and now that it is finished, would like to register it as one, as we are now paying for council tax on both properties and one is 'as an empty property' so we are paying double CT on that one, because the land registry says it is 2 properties still. They have said that they will not change it until we have permission from the lender, but the lender will not give permission until the land registry do, i am going around in circles, what advice can you giveplease?

TIA

user1977

This doesn’t make much sense. Council tax is based on what the properties physically comprise, not how they’re registered.

DullGreyGuy

Are both mortgages with the same lender? 

Would assume the Lender does have to give permission first as one or both of them is going to lose its charge making recovery from non-payment substantially more difficult 

angiross

user1977 said:

This doesn’t make much sense. Council tax is based on what the properties physically comprise, not how they’re registered.

its crazy. they are charging for unoccupied property at +100% charge. I was thinking of adding one of us to each property so that both are registered as occupied . we will save £200 a month  doing that.

lincroft1710

Providing the property has been properly converted e.g. second kitchen removed, the VOA will assess it as a single dwelling for CT purposes. 

eddddy

angiross said:

user1977 said:

This doesn’t make much sense. Council tax is based on what the properties physically comprise, not how they’re registered.

its crazy. they are charging for unoccupied property at +100% charge. I was thinking of adding one of us to each property so that both are registered as occupied . we will save £200 a month  doing that.

The point is - you don't need to do that. And you don't need to involve Land Registry.

You tell the Valuation Office Agency that there is now just one dwelling - instead of 2. And they should issue you with a new council tax band.



I guess you're up to speed with planning consent and building regulations issues...

There might be a requirement for Planning Consent. Some councils might have local restrictions on combining houses, because it reduces the number of homes available.

Also, property conversions (e.g. converting 2 houses into one) usually need building control approval. If the houses are old, getting them up to current building regulations standard can be a difficult and expensive job.



What is the situation with mortgages? Are both houses currently mortgaged? Do you need to remortgage?

angiross

the one property is mortgaged but we bought next door outright. so no mortgage. no need to remortgage, building regs and everything els was done correctly and signed off

anselld

The key is to inform the VOA.  They will take about 9 months to respond but they should backdate the CT liability to the date when the properties physically became one, eg as evidence by Building Regs Completion Certificate. 

There is no doubt a completely different process to combine the titles at land registry but that would not affect CT.
There is yet another process with the Royal Mail to delete one or other address or you can just leave as 15-17 xxx street or whatever.

anselld

Btw at our Council the definition for double CT states empty unfurnished.  So you can get round it by furnishing.  Yours may be different, check the local policy.

angiross

brilliant, just filled in the online form wth VOA Thanks everyone. Now to deal with the land registry. uurgh!

thanks very much

It has been converted properly, not just knocked a doorway though, it actually is one bigger house now with one set of utilities. (that was a ball ache in itself tbh)