Chances of getting a refund on a selective licence?

Chances of getting a refund on a selective licence?

0:01 AM, 18th October 2024, About A year ago 14

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Hi, towards the end of September, I got an email confirming my successful selective licence application. This application was submitted back in June, so it’s taken a while.

Some months after I submitted my application, I contacted the same council who are buying back stock. They carried out a valuation and we are nearing a figure I’d be happy to sell for.

My question is, what’s the chances of me pursuing a partial refund? I say partial because I’m happy to pay for sensible admin costs for processing it.

I know the scheme is a tax grab in general, it just irritates me that not only does it seem a waste of money for an active rental property, in my case, it’s not going to be covering anything.

I can’t see any other justification for them retaining a fee for a three year licence, which will only be ‘active’ for 4 months or so, with no actual inspection etc.

Thoughts are welcome!

Thanks,

Priten


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Tim Rogers

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Member Since November 2017 - Comments: 257

11:06 AM, 18th October 2024, About A year ago

It will probably depend on the small print of the agreement. I doubt if it will be offered willingly. But I wonder if a precedent could be set by calculating a reasonable refund and then taking it to the small claims court?

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DPT

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Member Since October 2020 - Comments: 1090

11:15 AM, 18th October 2024, About A year ago

You might not need to pay the second installment, but I doubt you’d get a refund on the first.

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Darren Peters

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Member Since January 2016 - Comments: 467

11:30 AM, 18th October 2024, About A year ago

For the sake of simplicity I’d just add the licence cost to the price you are willing to sell for

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Michael Johnson - Amzac Estates

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Member Since September 2018 - Comments: 107

14:19 PM, 18th October 2024, About A year ago

I don’t understand why you think a refund is due? After all the licence ( whether we like it or not ) is the cost of doing business so having a property that is licensed allows the property to retain its investment value. The time that has elapsed is irrelevant and potentially they may not have looked at the property if it wasn’t licensed?
Or look at it another way if you hade a property that was unlicensed in a selective licensing area an investor would buy it off you but at a substantially reduced amount.
Do you ask for a refund on the MOT of your car as well?

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Judith Wordsworth

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Member Since January 2015 - Comments: 1371

18:28 PM, 18th October 2024, About A year ago

Reply to the comment left by Michael Johnson – Amzac Estates at 18/10/2024 – 14:19
You can get refunds for Road Tax when you sell and if you Sorn the car

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Priten Patel

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Member Since April 2023 - Comments: 30

18:57 PM, 18th October 2024, About A year ago

Thanks Judith. My opinion of the distinct difference between an MOT and a selective license is that one offers value to the market, the other doesn’t.

The license is apparently not for profit. In my case, they will have made a profit. I’m simply asking for this back less any sensible costs incurred so far.

No one has been out to inspect the property, it’s purely just been an administrative piece to date.

Thanks for the sensible suggestions so far. It’s been paid in full, I’ll see how it goes but won’t hold my breath!

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Michael Johnson - Amzac Estates

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Member Since September 2018 - Comments: 107

19:21 PM, 18th October 2024, About A year ago

Reply to the comment left by Judith Wordsworth at 18/10/2024 – 18:28
You would if you paid the council tax for a year up front and then move. The license fee is similar to an MOT which you wouldn’t get back

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DAMIEN RAFFERTY

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Member Since September 2022 - Comments: 183

1:41 AM, 19th October 2024, About A year ago

However it is a Tax deductible expense in the running of your business!
So the FEE will be deducted from your profit next year

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Mick Roberts

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Member Since June 2013 - Comments: 3194 - Articles: 80

21:03 PM, 19th October 2024, About A year ago

Reply to the comment left by Michael Johnson – Amzac Estates at 18/10/2024 – 14:19
The licence doesn’t go with the property when I sell it or blow it up or it sinks.
Soon as u sell the house, new Landlord has to apply for new licence.
Ludicrous I know.
If u apply 4 years 6 months into 5 years scheme, u only get 6 months for the same £1000 fee as 5 year scheme.

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Michael Johnson - Amzac Estates

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Member Since September 2018 - Comments: 107

7:24 AM, 20th October 2024, About A year ago

Reply to the comment left by Mick Roberts at 19/10/2024 – 21:03
Yes it does although they may charge an administrative fee. Although you are in the worst council in the country so knowing Nottingham council they may do that.

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