RATES DEMANDS & Cannot pay

I started up a business in a commercial property that I own. Could not get a tenant. So I started up myself and try to keep the loan paid. I had truthfully told the Local authority every year that the property was vacant. Each year they send me a rates demand for 36K in rates.

Now that I have started a business they have been on looking for their 36K. Problem is the RV bears no relation to the actual economy in a remote rural place. A rates specialist told me they cannot revise the RV downwards.

My problem is that I will make about 15K this year. All that goes to bank loan.

Does anyone out there know how to play this one ? My fear is that rates arrears will mount faster than any loan goes down. Do rates arrears attach to a property on a sale ?

Is 36K for one years rates. What do they base it on, and if you're making 15K that would put you out of business.

Thanks Bronte
Of course this will put me out of business. My problem is that there does not seem to be any compromise. The building is large and high profile, though not a retail site. I applied to get the RV reduced put they actually increased it.
From a rates point of view I am better off closed, but the bank want it opened.
My big fear is that I will have rates arrears accruing much faster than the loan is falling.
Bank want me to sell because they can see I am at the pin of my collar to make the repayments.

But what is the point of selling if the County council want 36k per annum for every year I was opened. I notice that they do not sent statements, only an annual demand. This is my second year. Is there now a charge of 72K on my property when I go to sell it ?

I could sell it for about 80K. Its worth about 250K. I paid 600K. It cost 3,500K to build in 1995. Debt is 350K. There is a zero property market here. There will be no buyers and no tenants.

I always felt I was working for the bank after this major investment error. Now I can add the county council to that ?

What are your other assets and liabilities?

You may need to go down the insolvency route.

Is there not an appeals process on the RV?

Brendan

My understanding is that you will be only due rates if the business was trading. You should write to the Co. Co informing them of the periods that it was vacant. Given the sums involved and your precarious financial position I think you should get a solicitor to write a well worded letter to your Co. Co.

Your business is a limited liability company?
The property is owned and guaranteed by you personally?