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Dad's empty house

(25 Posts)
Mishap Wed 26-Feb-14 17:04:39

As some of you will know, my Dad died last summer. Once probate was granted, we put his sheltered home on the market. We had 6 months of freedom from council tax, but now have to pay £100 per month council tax + standing charge to the housing association that built the property + electricity to keep it from getting damp. That is a total of £255 per month on an empty property. It has been on the market for a long while, but it is a bit of a niche market, being a sheltered property for the elderly and there is little we can do to expedite a sale. Putting the price down is unlikely to help as a buyer depends upon someone of the relevant age and with the relevant needs to appear.

I have to say I think it is rather poor that the council demands tax from someone who is dead and cannot possibly use their services - ditto the housing association.

Has anyone else been in this situation?

Anne58 Wed 26-Feb-14 17:10:51

Mishap I totally agree re the council tax, but unfortunately there seem to be no exemptions.

Is there anyway that it might be better for you to rent it out for the interim period? I understand that the T's & C's re the eligibility will still apply, but is it something that you have looked into?

(Apologies if I'm totally out of kilter on this)

Mishap Wed 26-Feb-14 17:33:59

Yes - I wondered about renting it out, but I am guessing that there might be a similar problem about finding a suitable tenant of the right age and with the right needs. And I am not sure that the housing association rules allow for this - I think that rented ones are let by them and not by owner-occupiers. I think his home is not a million miles from you *phoenix."!

Nonu Wed 26-Feb-14 18:00:06

Mishap why don"t you have a word with them and see what they say .
You have two chances , nothing ventured , nothing gained !
daffodildaffodil

Anne58 Wed 26-Feb-14 18:05:17

Mishap must agree with Nonu , speak to the HA, you never know they may have some sort of facility for those who meet the requirements but perhaps are not in a position to purchase.

(PS at the way things are currently chez Phoenix, we could be in the market ourselves sad )

jinglbellsfrocks Wed 26-Feb-14 18:08:18

Would the housing association buy it? If they have other ones already that they rent out?

JessM Wed 26-Feb-14 18:29:22

Yes that sounds like a sensible tack to take. They may be happy to take it off your hands. Fingers crossed.

absent Wed 26-Feb-14 19:14:28

I think it took my ex about three years plus several reductions in price to sell his late mother's sheltered flat. Meanwhile, as you say, he was liable for council tax and standing charges. He was not allowed to rent it out. I suspect you're just stuck until you can sell.

chloe1984 Wed 26-Feb-14 19:33:29

It happened to us as well we had six months grace from paying council tax but still had to pay £135 per month for 'maintenance charges' Did look into renting but would have to pay a letting agent each month in addition to fees in setting up each new tenancy. We were also continually hassled over non payment of TV licence -the flat was empty after my Mothers death and she was exempt from paying a TV licence anyway.
May be worth having discussions with the housing department of the local council to see if they would rent from you for a tenant (if that is allowed by the housing association) I am certainly no expert but another thing that bothers me about renting a property is capital gains tax liability when the property is finally sold. Do wish you the very best of luck and hope that a suitable buyer comes along quickly for you.

rosequartz Wed 26-Feb-14 20:04:19

I was surprised to hear from someone today that she has had to pay council tax on a property she inherited and whereas she gets a reduced rate herself on her own home for single occupancy, there is no reduction on a property that is empty waiting to be sold.

rosequartz Wed 26-Feb-14 20:05:58

Should not be capital gains tax on a property that has been inherited, and no inheritance tax if it is under the threshold

LearnerG Wed 26-Feb-14 22:55:04

Yes, I too still have to pay full Council tax on an inherited property which is standing empty awaiting sale. I did get 6 months off, but then it reverted to full payments, not even single occupancy. Plus of course all the standing charges for water, gas and electricity. It works out to over £200 a month.

JessM Thu 27-Feb-14 07:54:06

The council tax will be paid "by the estate" won't it, rather than by heirs.
But sounds very frustrating. I wonder if Age UK might have any advice to offer.
The sad thing is there must be people who really need to move into sheltered housing.

kittylester Thu 27-Feb-14 08:08:14

It is really unfair and I was also going to suggest AgeUk! Hope it sells quickly!

rosesarered Thu 27-Feb-14 11:50:36

Am surprised by this as I would never have thought you needed to pay council tax for an empty [sheltered housing] flat. A friend who used to have a second home paid less council tax on it than her own home as she wasn't using it much, so you would think the same rule applied here [unless they have toughened up all these 'loopholes'?]

janerowena Thu 27-Feb-14 13:14:31

I wonder what happens if you simply don't pay? It sounds ridiculous and very unfair. At the very least, you should be allowed to pay once the property has been sold - without interest.

Mishap Thu 27-Feb-14 13:57:39

Yes - I think we should be allowed to pay once the property is sold. At present it is coming out of an account that my sister manages for us. I do not feel we should be asked to pay at all really, but it does not seem fair that we are paying someone else's council tax!

And as to the fee to the housing association - it would be less unfair if they were actually doing something for that money - e.g. keeping an eye on the house, showing prospective buyers round, keeping the tiny garden in trim - but it is just money down the drain.

janerowena Thu 27-Feb-14 14:08:31

It does sound like it. I wonder if a visit to a solicitor might help? CAB?

JessM Fri 28-Feb-14 07:23:59

Just had another idea - if housing association do not come up trumps. See if your local U3a will take an advert in their newsletter or put up an ad in your meeting. If an active branch someone may know a possible buyer. Let us know how you get on with the housing association. I think in your shoes I would try to make an appointment with one of the managers so that you can explore the issue fully in the light of the lease etc. This must come up regularly, surely.

POGS Fri 28-Feb-14 11:47:17

Mishap

I too lost my lovely dad last June. We are hoping like crazy that his bungalow which is in the process of being sold goes ahead, hopefully we will have a date by the end of next week as we have a cash buyer. If it falls through we will be in the same circumstance of paying council tax however.

I do think in bereavement circumstances a little bit of discretion could be shown. If you have an uninhabited building, clearly trying to be sold, there could be a case for a little understanding to be shown.

It's a bugger isn't it, plain and simple. confused

durhamjen Fri 28-Feb-14 12:01:31

When we first moved to this village, we rented a bungalow for 6 months after our son had also rented it for 6 months.
It had belonged to a mother who died. It was left to her daughter and two granddaughters. For over three years it has been empty, as they will not drop the price to a reasonable price for the area. They have had to do roof repairs, etc., which needed doing when we were living there.
It must be costing them to keep it empty. The daughter lives two doors away, and the granddaughters live in different parts of the country and do not want to live here.
I would have thought it would be better to cut their losses.

janerowena Fri 28-Feb-14 12:03:23

We need a petition. don't we. I only became aware of the problem recently, when a friend's partner's mother died. They can't sell her bungalow and can't afford what it is costing them.

rosesarered Fri 28-Feb-14 20:18:43

This seems to be a bit of a scandal doesn't it? Not having the cash to pay for the extra council tax must put a real strain on some people, what happens if they simply tell the council this?They will pay as soon as it's sold?After all, the empty house is not using the services is it, no water, rubbish collection etc. I do wonder if it's worth a talk with an official [if you really can't pay up front.]

rosequartz Fri 28-Feb-14 20:22:19

The 'house' per se is not receiving any services from the Local Authority so why should there be any charges in these instances? Unless the house/garden is neglected and the LA has to be called in to deal with it.

Ana Fri 28-Feb-14 20:25:50

Surely the Council can't expect someone else to pay? It should come out of the estate once the property is sold (and as someone else said, without interest!).