Business Rates?

[deshg]

Hello everyone, i have a question about business rates on commercial properties and hoped you might be able to help?!

I bought a building with a retail unit and a flat above it about 18months ago. The shop was tenanted on a 10 year lease running to 2009, however the tenant disappeared as soon as i took possession and i have never managed to get in contact with him. I have never relet the unit or changed any names in terms of rates etc as i have been using it for storage, but i am now selling it and want to make sure everything is tied up properly (realise i should have done this ages ago!!)

My question really is, is he still liable for the business rates etc up til now even though he clearly did a runner and has never paid me rent. The main reason i ask is i have never paid any because the council have never asked and it occurs to me now someone should have been paying them this whole time. I got out of all the electricity charges by telling them he was liable because he was still under contract and they wrote it all off, but i'm wondering if i'd be better to notify the council when i sell it that it's become vacant? Would this then make him totally liable for all charges up until then, and then allow the new owner the standard 3 months business rates relief whilst they try and rent it?

I would really really appreciate any advice on this, as i'm not sure what the situation is or who to ask?

Thanks very much everyone,

Dave

[daveyjp]

You are liable for business rates from the day you repossessed the unit and took occupation.

[deshg]

Thanks daveyjp, strictly speaking that's obviously true, my question is though who is to say when i took occupation of the unit? The only person who knows i have been in there is me, so as i say strictly speaking there's nothing to say i have taken occupation, i may just still be waiting for him to pay me rent? and in which case would that mean he is liable even though i haven't seen him in 18 months?

Thanks very much for your help,

Dave

[deshg]

does anyone have any thoughts on this? I guess the question is more accurately, if i purchase a shop unit with an existing tenancy and the tenant never pays me rent or shows up over the course of 18 months but i have not relet the shop or taken occupancy myself, presumably he is still liable for all rates/utility bills etc as defined under his tenancy until i either relet it/take occupancy myself or he comes to an agreement with me about terminating the lease? is there any legal assumption that makes the tenancy automatically void after a certain period of time of him not paying me rent/showing up etc and hence forcing the tenancy obligations (such as responsiblity for business rates) back on myself?

I would really really appreciate any thoughts that anyone has on this,

Thanks very much everyone,

Dave

[SteveP]

Rating is quite a specialist area. I would suggest you call a chap called Andrew Warde of Nelson Bakewell on 020 7544 2000, you can tell him I suggested you call him.

However, I think the question has already been answered as well as you can expect here. The outstanding question would seem to be whether a court would accept that you did not recieve rent for 18 months and did not find out why for all of that time.

Your guess is as good as mine, but Andrew knows rating law better than anyone I know.

[daveyjp]

is there any legal assumption that makes the tenancy automatically void after a certain period of time of him not paying me rent/showing up etc and hence forcing the tenancy obligations (such as responsiblity for business rates) back on myself? - NO. If you as a landlord are happy about him having rental debts that's up to you.

If you are not you have to repossess and as previously said - as soon as you repossess you become responsible and it is up to you to inform business rates. The staff working for business rates and the valuation office are far from stupid and have a knack of finding things out. If a bill isn't being paid they will be knocking on doors soon enough to find out who is liable.