Class L - Properties Repossessed from the Former Mortgagors
Unoccupied properties where the mortgage lender, has repossessed the property from the mortgagor, the person granted the loan, are exempt from Council Tax.
Possession by the lender does not constitute a change in occupation, so the mortgagor will remain the liable Council Taxpayer although an exemption would be applied from the date of the repossession provided the property is empty. If the property remains occupied after the repossession order is made, Council Tax liability will continue, in the usual way, until the property is vacated. The Council Tax exemption on the empty property would continue until the mortgage lender's possession is terminated or the property is sold.
The mortgagor choosing to abandon the property would not be sufficient for this exemption to apply. A repossession order must have been made for the exemption to be granted.
To apply for this exemption please write to Revenue Services and provide evidence from the mortgage lender that a repossession order has been made.
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