Mortgage lenders in possession (class L)
If the mortgage lender takes possession of the property while you are living in it, you, as the owner or occupier, must continue to pay council tax on it. Once the property is unoccupied, it will be exempt from council tax.
If the mortgage lender takes possession of an unoccupied property, no-one has to pay council tax on it until either the lender gives up possession or sells the property.
If the mortgage lender obtains a court order granting possession, but does not take possession immediately, the person in actual possession (normally the person who took out the loan) must pay the full council tax, unless another discount or exemption applies. This will be the case until the mortgage lender takes possession.
Apply
To apply for this exemption, you need to provide:
- the date the mortgage lender took possession
- the name and address of the mortgage lender
Please email revenues@surreyheath.gov.uk (link sends email) to apply for this discount.