Council Tax and Repossession

[Gprit]

NWHL were granted a Possession order by the Court in March 2012, effective after 28 days.
The property has been sold in September but through agents previously appointed by me, even though they had to liaise with NWHL, as did the solicitor.
NWHL never offically followed this repossession order through (no locks changed etc etc).

Now, my question is that the local authority are claiming Council Tax for the few months it was empty (after the allowed six months). NWHL refused to include this as a disbursement against the sale.

I pointed the local authority to the fact that a Court re-possession order was granted in March effective April and that hence none was due.
Can someone confirm that despite this I am correct in stating no Council tax is due because they were granted a re-possession order, even if they did not fully act on it.

thanks

[Gprit]

Re: Council Tax and Repossession

Seems like one of the few topiscs that no-one has an opinion on???!!! anyone have any guidance?? thanks

[bluebottle]

Re: Council Tax and Repossession

Sorry your post hasn't been answered since 9 November. I'm going to bump this thread for a debt expert to look in.

:bump:

[wales01man]

Re: Council Tax and Repossession

I am no expert but from experience i can say when we were repossed the council sent a form for us to declare we were not in residence nothing to pay then check with the council i note you sold not the mortgage co this may change things

[Gprit]

Re: Council Tax and Repossession

Thanks - I think it depends on the definition of Re-possession. Is it final 28 days after the Court Order or does the Mortgage Company have to do anything?
As I said, the property was already vacant and they just sat back while a sale arranged through my agents went ahead. I would add though that solicitors acting in sale had to consult on every aspect with them, including the acceptance of the offer, which was below mortgage balance.

[Gprit]

Re: Council Tax and Repossession

Guess not many people have been in this situation???

[enquirer]

Re: Council Tax and Repossession

Liability falls upon the legal owner of the property during the months in question.

[ploddertom]

Re: Council Tax and Repossession

From memory you may find in the small print somewhere that you will still be held liable until such time a new resident moves in, but each case is different and taken on its own merits.

[Gprit]

Re: Council Tax and Repossession

Q Again....what is the definition of 'Legal Owner' if a court has granted NWHL a repossession order effective after 28 days.
Presumably that means that NWHL possess it after that time???.

[labman]

Re: Council Tax and Repossession

What sort of repossession order was it? Was it outright, suspended, a money order, a possession order with money judgment or a time order?

All the above are considered types of repossession order, and each will affect CT liability.

[Gprit]

Re: Council Tax and Repossession

Not sure of the different terminology, but the order is headed Order for Possession and states:

"the court orders that
1 The defendant give the claimant possession of (the property address) on or before 06 April 2012.

and it is adjudged that
The claimant recover against the defendent teh sum of £xxxxx for debt and interest to date of judgement.

It is ordered that the defendant pay the sum of £xxxxx to the claimant by 06 April 2012".

thanks

[labman]

Re: Council Tax and Repossession

The order is clearly outright. It states that you give them possession. I assume you did this from your part - what exactly were you required to do -ie- what is involved in you giving them possession? Were you expected to deal with land registry etc...? Surely not.

If you gave possession, then the property was not yours to pay CT for. It would be their responsibility surely? If possession was not given, then you would remain responsible for the CT.

[Gprit]

Re: Council Tax and Repossession

Thank you - that is my interpretation also, but the local authority seem to disagree.
I was not required to do anything. The property was already vacant and for sale when possession order granted.
Was sold in September through agents already acting for me - although they and solicitors had to confer with NWHL at each stage.

[Gprit]

Re: Council Tax and Repossession

further....As far as I was concerned the Order was Final and i didn't have to do anything. I think the grey is is neither did NWHL after the Possession Order. Didn't appoint anyone, didn't change locks etc as the property was already vacant and for sale. DID they have to do anything for posession to be final??

[labman]

Re: Council Tax and Repossession

I've found this:

1. Possession Order

An Outright Possession order in favour of your lender means you don't have the legal right to remain at the property beyond the date stated in the order, typically 4 weeks after the date of the hearing.
A request for an extension may be made if difficult circumstances, such as illness or other circumstances in which hardship can be demonstrated.
The court order means your lender has the right and the power of the courts to evict you, which does not always mean they will actually do it. You can always appeal to you lender to allow you to stay. After all, the last thing your lender wants is to repossess the property, they prefer that you eventually make good with payments and arrears.

This would seem to suggest that you would be liable for the CT.