People can sometimes end up owning an empty property, such as landlords who can’t find tenants for a flat or an existing homeowner who is given an inherited retirement house that they don’t want to live in. Some news reports suggest there are hundreds of thousands of vacant homes throughout the UK that have a combined market value of billions of pounds.
Having a second property can be welcome in some situations, such as when the mortgage for the home is paid off and it makes sense as an investment for your financial future. And if you can quickly find tenants to pay rent to live in the empty home, that can be an easy solution.
But there can be a number of costs that might result from owning a home that’s vacant, and they could be large enough that selling it could be the best option. Every year there are a number of cases involving property fraud with empty houses and flats, where scammers have claimed to own the home and defrauded a prospective buyer out of the proceeds.
Other costs of having a vacant house are less severe, including general maintenance costs, but no matter whether the expense is large or small, it’s vital to understand them all. Making Tax Digital for landlords requires accurate record keeping, and knowing the full range of potential costs that you might incur with an empty property can make all the difference when it comes time to decide whether it’s worth keeping the home, or selling it. Understanding and tracking these costs can also help you stay compliant with the new digital tax system.
Payments will still be due on a vacant property’s mortgage
If you own two properties and only live in one of them, but you still have mortgage balances outstanding on both homes then you will continue to be liable for those payments. Just because you’re not living in a property does not excuse you from having to pay the mortgage. You may then consider sell it, as suggests dpcrealtor, specialized in Desa ParkCity property for sale.
This isn’t necessarily a problem for landlords that rent out the second property and have tenants, and who use the monthly rent payments to cover the cost of the mortgage. But it can quickly become a problem if there are no tenants and the owner does not have enough cash each month to meet the mortgage payments, and they might fall behind. This can lead to late fees and, in worst case scenarios, put the property at risk of repossession.
You’ll still have to pay council tax on the empty home
As stated on the UK Government website, empty properties are still subject to council tax, so you could be paying this tax twice if you own the home where you’re currently living and also have a second, vacant house or flat. This can be an unnecessary expense, particularly if you are a homeowner already living on a very tight budget.
It’s possible that your local council might be able to grant you a discount on the amount of council tax that you have to pay on your empty property, but you will have to make a formal request. And there is no guarantee that the council will approve the request.
Homes left empty for two years or longer could be subject to double council tax, so if your property has been vacant for almost that time you should consider selling it.
Utility bills and other maintenance costs will still apply
Even if your second property is empty, you will still have to pay utilities such as water and electricity unless you have the services disconnected during the time the home is vacant. Depending on the size of the home, these bills could potentially be quite significant.
And you will also have to spend time and money making sure that the home is kept in good condition, such as regularly tending to the garden to prevent it becoming overgrown, cleaning the interior, fixing any issues that arise such as broken windows, and more. If you are on a limited budget, even these small expenses might be too much to keep paying.
Advertising for new tenants can be expensive
If you are planning on finding someone to rent the second property, you will likely have to pay for advertising in the local newspaper, online and elsewhere so that people are aware the home is available to rent. Although this should not be a huge expense, it is nevertheless another cost that you will have to consider as another element of owning a vacant house or flat.
Empty properties could be at risk from criminals
Unfortunately, empty houses and flats can be at greater risk of break-ins from burglars, vandals, fly tippers and others who might commit criminal acts on the premises. This is because there’s nobody living in the vacant property to deter someone from such behaviour.
You should make sure to have insurance on the empty property to cover you for any liability that might arise from vandalism or other crimes. And if you already have an insurance policy for a home that subsequently became vacant, beware that some insurance companies will deem the policy to no longer be valid if the home is vacant after a set number of months.
And in certain circumstances, you might even need to pay for security cameras and other methods for protecting the property if is subject to repeat criminal damage.
Consider selling your empty property to avoid costs
If you have an empty property and would like to sell it rather than continuing to hold on to it, there are a few options for finding someone to buy it. You could sell through the traditional method of using an estate agent, you could try your luck with a property auction, or you could contact a fast home buyer such as LDN Properties.
Whether selling the property or keeping it is a decision that will depend entirely on your unique needs, for example if you need to raise capital quickly or if there is the potential that you might soon have tenants for the second home. At the very least, you could consider asking around for sale price quotes that could help you in making that decision.