Some Top Tips

Solicitors Newcastle and Sunderland

This month I thought I’d provide a round-up of some helpful issues that might be relevant to you, your family or friends.

Council Tax Exemptions

There are a number of exemptions but the two that I wish to concentrate on are the Severely Mentally Impaired Council Tax Discount and the Uninhabitable Property Discount. (some of this information is from moneysavingexpert.)

What is the ‘Severely Mentally Impaired’ discount?

By law, to qualify, someone must be medically certified as being ‘severely mentally impaired’ – defined as having “a severe impairment of intelligence and social functioning which appears to be permanent”.

This is a medical diagnosis, but the underlying cause could be a number of things, such as dementia (including Alzheimer’s), severe learning difficulties, schizophrenia or Parkinson’s Disease. This is not an exhaustive list.

It’s important to note that having an underlying condition does not automatically mean a person is ‘severely mentally impaired’ (SMI).

If someone is diagnosed as SMI, they can be ‘disregarded for council tax purposes’ in England. If you or someone you live with is diagnosed as SMI, this means you can claim:

• A 100% discount – if you’re diagnosed as SMI and live alone, you shouldn’t be paying any council tax at all.
• A 25% discount – if you live with someone who’s SMI and no other adults, or only adults who have also been disregarded for council tax purposes, in effect you get a single person’s discount. But when claiming, specify you require a discount because you are living with someone who is severely mentally impaired.

To qualify for the reduction, not only does the person have to be medically certified as being SMI, but they also must be eligible for – but not necessarily actually receiving – at least one of a number of benefits, such as Disability Living Allowance. Warning: Some councils wrongly tell people they need to be receiving these benefits. That’s not correct – the law simply says you need to be eligible for them.

Uninhabitable Property

Quite a lot of properties that I deal with as a result of probate, or because I am looking after a property on behalf of someone who isn’t capable of doing so, are in such a state of disrepair that they cannot reasonably be lived in. This also occurs when a property has been purchased for the purposes of renovation.

The discount is not automatic. You must apply to your local authority. Some of the issues that I have seen relate to asbestos, is there a bathroom, a useable kitchen, are the walls sound etc. Here is some guidance from the government website on the point;

“Where the works are more substantial, including structural alterations, major renovation or other alterations, (which result in the property being incapable of occupation), then the band may be deleted. Such works will be of a much greater scale than normal repairs. Significant reconstruction must make it impossible to live in any part of the property for the band to be deleted”.

Usually the local authority will wish to send an officer out to inspect the property. However, at the moment some authorities are content to receive photographs instead.

If you require any help, or a chat about how we can help you please don’t hesitate to contact our team.

Water Rates

If a property is empty then I always apply to the water company to cease all charges. They are usually happy enough to back date payments if you can provide proof as to when the property became empty.

Recurring Payments

When I am looking after the affairs of a client under a Lasting Power of Attorney, or if I am attending to the estate of a deceased client, then I need to stop all standing orders and direct debits as soon as possible. But beware, often there are recurring payments on bank accounts and credit cards.

You should ask both your bank and credit card company for a list of recurring payments. You may well be shocked. Old car insurance or house insurance and payments for endless software programmes that are no longer used. I just saved myself the price of a holiday by insisting that him indoors looked at all of the software programmes we were paying for, he’s in charge of technology and previously when I queried these payments I was told not to worry as they are all to do with our computers. I bet you could start some equally “interesting” conversations in your household!!

Have you checked through your bank and credit card statements recently? In one case a client had paid house insurance to three different companies every year for the previous three years.

Empty House Insurance

Most household insurance policies will allow thirty to ninety days of a property being empty. However, that is in relation to a house that is otherwise continually used. If you or a relative leave the property to reside in a care home or with other relatives then the property is at greater risk as far as your insurer is concerned.

Thieves will quickly notice an empty property and so theft is more likely as are floods. You MUST advise your insurance company of any changes. Some companies will allow the insurance to continue until the period of cover ends. This is more the case when the owner has died. Others will either refuse to continue the cover or will impose new conditions and higher premiums. There are specialist companies that we use to obtain Empty House cover without too much fuss.

Why not have a look at what you are unknowingly spending at the moment, you might save enough to afford to go out tripping the light fantastic when this lockdown ends.

If you require any help relating to the above issues then I can be contacted at je@emmersons-solicitors.co.uk

Solicitors Newcastle:  0191 284 6989

Solicitors Sunderland: 0191 567 6667

Email us: enquiries@emmersons-solicitors.co.uk

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You can also park opposite our Sunderland Office on John Street.