Convert to HMO or Register for council tax or Sell?

Convert to HMO or Register for council tax or Sell?

11:26 AM, 23rd May 2016, About 8 years ago 18

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I have 3 HMOs 2 registered and one I was told was not registerable. I was told by the HMO man from the local council as it was self contained units so we just carried on as we were.question

I’ve now had a letter from the council/valuation department to tell me that as they are self contained they all need to pay separate council tax – which is madness as they are rooms with kitchen unit (all one modern) and a shower/loo. Electricity and heating is mine.

The decision I have now is whether to allow the valuation department to give them ‘values’ though I don’t know how they can, speak to HMO department to see how I can get it registered as an HMO – put in a communal area maybe and use up one unit? or sell.

I’m also wondering how far back the valuation people can go and claim in back council tax.

My feeling at the moment is to sell, it is mortgage free and with this new method of taxing interest on buy to let coming up I could reduce other borrowings.

Anyone with any experience of this area? – we were definitely not advised that the units were classed as council taxable – and didn’t think to ask.


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terry sullivan

12:08 PM, 23rd May 2016, About 8 years ago

student lets? exempt from council tax


12:14 PM, 23rd May 2016, About 8 years ago

Genius man - it would then have a bit of a knock on if I decided to sell, but certainly a different angle on the whole thing - as you make have noticed I'm a bit tired of all this and looking for a reason to get out!

terry sullivan

12:29 PM, 23rd May 2016, About 8 years ago

remember cgt is at 28% and no indexation


12:31 PM, 23rd May 2016, About 8 years ago

I'm not liable for gain at the moment - it was passed to me by my late husband a few years ago at then current rate.

terry sullivan

12:48 PM, 23rd May 2016, About 8 years ago

in that case i would sell and reduce mortgages on others?


13:06 PM, 23rd May 2016, About 8 years ago

Yes, I keep coming back to that one - as we all know with HMOs, regardless of what this, is they are generally pretty high maintenance and I manage them all myself.

Thanks for the sensible comments.


14:22 PM, 23rd May 2016, About 8 years ago


We have a building that has 3 self contained flats and they always had their own Council Tax bills and we were recently force to get HMO licensing (Islington council "Additional"). If your not paying for it then there nothing to really worry about as it will become the tenants problem or make it their problem. But on another note if I am allowed to say "I'd be interested in taking it off your hands?" 🙂


14:27 PM, 23rd May 2016, About 8 years ago

Your are. This legislation has become so complicated with dwellings being both self contained and also HMO - the whole point of HMO was in the acronym.

3 floor 8 studios 2 separate self contained - loosely - central london.


14:52 PM, 23rd May 2016, About 8 years ago

Reply to the comment left by "Harlequin Garden" at "23/05/2016 - 14:27":

But has it though, become complicated. At the end of the day it just regulations and compliance with new laws that they bring out every other month. Our building is a commercial mix but Islington Council focussed it attention on two road in the borough and unfortunately we was on one of those the A1 (Holloway Road). I had to HMO the building (3 floors g,1,2) and out of the 3 flats, 1 flat had to be licensed because the current tenants (only 3) are not from same household (where as other two flat =>2 persons exempt - thank god!!) - but those HOUSES off these two main roads where most are 3 floors are currently exempt for now.... loosely central London - hmmm probably out of my budget 🙁 - but always up for a coffee and B**** & moan!

terry sullivan

15:42 PM, 23rd May 2016, About 8 years ago

originally HMO was 3 or more storories and more than 5 persons

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