New to UK house rental - landlord wants me to pay council tax directly to him

[sibelius]

Hi,

 

I have found a nice house that I'd like to rent. The landlord is going abroad for a year and has asked me to pay the council tax and bills directly to him. I understand that this is not commonly done and have a few questions I'm hoping someone can help me answer:

 

1. I suspect that the landlord has not received permission from his mortgage lender to rent out the house and that that's the reason for not wanting to allow me to pay the council tax in my name. If that is the case, how would this affect my rights as tenants? In other words, if he is not allowed to rent out will my tenancy agreement with him be valid should problems arise between him and his lender?

 

2. In the event of a fire or a break-in, will our contents insurance be valid if the overall building insurance isn't valid because the landlords failed to obtain permission from their lender?

 

3. Can I be listed on the electoral roll if I'm not registered as an occupant at the address (e.g., through paying council tax in my name)? Would a lease agreement be sufficient for this purpose? Does the electoral roll office and council sync their data?

 

I was ready to sign the agreement but I now feel nervous about the implications of this. The landlord seems very nice and honest, but I would also understand if he is trying to avoid getting permission since it might increase his mortgage. The question is how it affects my rights as a tenant and whether it's risky for me to go along with this arrangement...

 

Thanks for any insight or advice you might have!

[LaughingGirl]

I've been in this position twice now, and I can tell you that we were both on the electoral role despite the CT being in our LL's name, I suspect for the same reason (not having a BTL mortgage). Legally, you as the tenant are liable for the CT payments however so I would be very wary - if he opts not to pay the CT to the Council for any reason, they will chase you for it.

 

I'm afraid I can't answer your questions about the insurance, but it's a very valid concern that I had never thought of myself. Hopefully, someone else will be able to answer that for you.

[padja]

First of all theres been a few posts on here about landlords including council tax in rent then not paying it, and liability orders then in their name.

 

this is from Manchester City Council:

 

When is the tenant responsible for paying?

If you are renting the whole of the property to one person or family, then it is the responsibility of your tenant to pay the Council Tax and we will send the bill to them.

If you rent the property to more than one person, but they are joint tenants, then they are jointly responsible for paying the Council Tax and we will send the bill to them.

 

So with that in mind you should pay council for council tax. You must if eligible to vote register on electoral roll if not you can be fined. As for Insurance I'm a tenant of local council and have content insurance and it doesnt say the landlord has to have building insurance but if taking out content insurance I would check this.

[sibelius]

Thanks for that information about the electoral roll - good to know that it doesn't seem connected to the council tax registration. Our draft tenancy agreement does state that I will pay the council tax to him, but I also understand that if there are any problems with him paying I will ultimately be liable for it. I think I can risk that given my sense that he's a trustworthy person.

 

I guess it's ultimately a leap of faith. If he pays his mortgage and the council tax, everything will be fine. If he doesn't, there might be problems. I just wonder if his breach of the mortgage terms have any implications for my tenancy agreement with him and whether his lack of landlord insurance will somehow invalidate my content insurance...

 

Thanks again

[LaughingGirl]

I know this wasn't one of your original questions, but do you have an arrangement in place for how urgent repairs to the house will be dealt with if your LL is abroad? I've known this to cause issues in the past, both on here and personally and it's best to raise the question now than when your boiler breaks down in the winter!

[Steve__M]

I doubt the council care as long as they get their money. One issue is if LL is getting a reduced rate (eg. if he is declared as a single occupier) and you are two or more people then the full rate is due, not the reduced rate. The second issue is if you ever applied for a council tax benefit you'd need it to be in your name.

 

Ask him if he is happy for you to see the bills to check.

 

There is a more minor issue in that a council tax bill in your name is often required for getting parking permits, and sometimes useful as proof of address.

[sibelius]

Thanks for that question! I'm going to raise it with him since of course it's incredibly important to make sure that is sorted before he leaves...

[sibelius]

Ah, good point about proof of address and parking. Hadn't thought of that. I suddenly feel so fortunate to have ended up in this forum....

[LaughingGirl]

Thanks for that question! I'm going to raise it with him since of course it's incredibly important to make sure that is sorted before he leaves...

 

If it helps for negotiations at all, when one of our better landlords went abroad for six months we agreed a fixed price (and got it in writing!) that we could spend on essential repairs in the event that we lost heating heating and/or hot water. We agreed that if we needed to do anything like that, we'd email him the receipt for payment and he'd reduce the following months rent accordingly to compensate for what we'd spent. Make sure you get it in writing, preferably with a signature if you do go down that route though.

[sibelius]

LaughingGirl, thanks. I'm going to talk to him about it and see if he has any other plan. If not, your suggestion seems like a good idea.

[nic117]

LaughingGirl, thanks. I'm going to talk to him about it and see if he has any other plan. If not, your suggestion seems like a good idea.

 

I'm sorry but I would pay it straight to the council to avoid any complications!

[raydetinu]

The LL, by law, must have a UK address where he can be contacted!

[Batfink]

And you will need to deduct the tax the landlord should be paying and pay this direct to HMRC.