Commercial Rates Fight
Discussion
For the last few months I have been fighting with the local council over a commercial rates bill they are trying to have my mother pay even though the property was leased out to a tenant under a commercial lease agreement.
In 2009 the the old tenants lease expired and due to my mother being very unwell I got a local lawyer to find a tenant and arrange a 5 year lease so the building would be taken care off and she would get some pocket money coming in every month as rent. Everything was very simple to arrange, the tenant got the keys and although he missed a few payments the property looked well maintained and as we had no use for it we let him stay.
In 2011 I got a call to say the tennant had "done a runner" and went back to Pakistan leaving the unit keys with the guy next door
I found another tenant and set the lease up via a letting agent who created the lease and collected payment etc.
Roll on to a few months ago and my mum is sent a rates bill for 30k to cover the 2009 - 2012 billing period. I immediately called the council and as requested sent in a copy of the lease along with details of the lawyer who arranged everything with the tennant.
It turns out the lawyer was struck off in 2010, was liquidated and his property sold to pay off around the same time as he took some sort of breakdown and went off radar.
I explained all this to the council and their legal rep confirmed he actually remembered the case in the legal press and although it happened I would still need to provide more info on the tennent.
The simple fact is I meet the guy once, only had a copy of the lease from the lawyer and have no way of getting in contact with the guy who also ripped us off!
My lawyer has said the council are just playing games and will push it because they can but his advice has already cost me a grand and the thought of having to pay 30k for something I don't owe is pretty annoying!
Anyone ever been in this situation? Would it be worth asking them to take us to court and presenting the lease etc and hoping the sheriff sees sense?
In 2009 the the old tenants lease expired and due to my mother being very unwell I got a local lawyer to find a tenant and arrange a 5 year lease so the building would be taken care off and she would get some pocket money coming in every month as rent. Everything was very simple to arrange, the tenant got the keys and although he missed a few payments the property looked well maintained and as we had no use for it we let him stay.
In 2011 I got a call to say the tennant had "done a runner" and went back to Pakistan leaving the unit keys with the guy next door
I found another tenant and set the lease up via a letting agent who created the lease and collected payment etc.
Roll on to a few months ago and my mum is sent a rates bill for 30k to cover the 2009 - 2012 billing period. I immediately called the council and as requested sent in a copy of the lease along with details of the lawyer who arranged everything with the tennant.
It turns out the lawyer was struck off in 2010, was liquidated and his property sold to pay off around the same time as he took some sort of breakdown and went off radar.
I explained all this to the council and their legal rep confirmed he actually remembered the case in the legal press and although it happened I would still need to provide more info on the tennent.
The simple fact is I meet the guy once, only had a copy of the lease from the lawyer and have no way of getting in contact with the guy who also ripped us off!
My lawyer has said the council are just playing games and will push it because they can but his advice has already cost me a grand and the thought of having to pay 30k for something I don't owe is pretty annoying!
Anyone ever been in this situation? Would it be worth asking them to take us to court and presenting the lease etc and hoping the sheriff sees sense?
I'm assuming that you are in Scotland?
Firstly this is what I would do in England. The Scottish system may be different.
If you have documentary proof (ie Lease) of the tenant in occupation I would send a letter with this. I would want to know why it has taken so long for a bill to 'arise'.
In England I would suggest that with this proof I can show that I was not in occupation nor responsible for the Rates and invite them to take me to court. I would point out that the proof provides all that they need to determine who the rateable occupier was, and that if they failed to take adequate action to pursue rates during his occupation this is not an excuse to recover funds from the building owner....
I would also point out that should this proceed to court I will rely on this letter when asking for expenses from the court.....
Firstly this is what I would do in England. The Scottish system may be different.
If you have documentary proof (ie Lease) of the tenant in occupation I would send a letter with this. I would want to know why it has taken so long for a bill to 'arise'.
In England I would suggest that with this proof I can show that I was not in occupation nor responsible for the Rates and invite them to take me to court. I would point out that the proof provides all that they need to determine who the rateable occupier was, and that if they failed to take adequate action to pursue rates during his occupation this is not an excuse to recover funds from the building owner....
I would also point out that should this proceed to court I will rely on this letter when asking for expenses from the court.....
The system is Scotland is a great mystery to me and I look forward to hearing someone's explanation. Broadly it seems that if you don't pay then it gets sent to the Sheriff and a warrant can be issued without you receiving notice. I am not sure therefore how you can contest it. In England the Billing Authority would need to issue a summons and you would turn up and defend it. The defence being you have a lease and hopefully you could provide evidence of rental payments etc.
In England you could also argue the demand had been served too late, so you would have a twin track approach, and I have recently been the expert witness in such a case where we successfully defended a claim for £55,000 in back rates.
In England you could also argue the demand had been served too late, so you would have a twin track approach, and I have recently been the expert witness in such a case where we successfully defended a claim for £55,000 in back rates.
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