Building an annex - what are the rules?

over_flo

For a number of reasons - currently family needs and for letting potential in our retirement,we are considering building an annex.

We have a detatched house with a large plot with a panoramic view.
We don't want to build anything that would compromise the view from the main house,so that leaves us with the option of building to the side.
There is room,but the ground is all different levels.
I suspect that it is easier to excavate for foundations than to build up the level of the ground,but that would mean building a separate unit at a lower level than the house.
If we did that it would be more of a separate building than an annex.
Are there rules we need to consider regarding planning and council tax?
After speaking to the council it's as clear as mud to me.
He seemed to be saying that even if we built it with access to the main house,it would still be liable for council tax which I don't understand as we were recently considering moving to a house with a self contained annex and the council tax was surpisingly low and definately not a separate charge .

The other consideration is VAT.
We were told that if we build something attatched to the main building it is liable to VAT,but if it is separate,it is not.



Anyone had any experience as this feels like a bit of a minefield to me.

macman

A separate dwelling, i.e. self contained with it's own access, cooking and washing facilities will be separately assessed for CT. It's physical remoteness (or not) from the main building isn't really relevant from the CT aspect. You will of course need planning permission.
Wouldn't your architect be the best person to speak to on these matters initially though?

phill99

I would have thought that the CT was the least of the issues. Surely, the cost, Planning Permission, Building Regs, getting and architect etc are far more important

over_flo

At present we do not have an architect.
Ideally I want to try to avoid incurring costs until we've looked at some general feasibility.
My experience with architects in the past has been that they want you to be clear about what you want and do the drawings accordingly .
They've offered very little advice.

The relevent factor then seems to be access .
If the only access was through the main house,no CT will be applied to the annex?
I suppose that option would make supplying mains services (gas,water electric) to the annex easier as it would come from the house and not require separate metres (which I suspect would be expensive to install).

Anyone know about the VAT issue?
That's quite a chunk to add to the cost and may be a deciding factor.

over_flo

phill99 wrote: »

I would have thought that the CT was the least of the issues. Surely, the cost, Planning Permission, Building Regs, getting and architect etc are far more important

In the short term maybe, but actually it's a big ongoing liability .

Gloomendoom

If it's extension to the main house it will attract vat. If it is built as a separate dwelling it won't, but you'll need to pay council tax and utility bills.

System

obviosuly you haven't dealt with a good architect in the past, offering suggestions/advice should be their first priority!! get a decent architect on board to do a pre-planning submission that should answer all the planning/building standards/cost/design etc

macman

I would be looking to ascertain if you have a chance of getting any kind of planing permission first before you do anything else then. Take a plan with approx dimensions and some photos and rough sketches into your LA's planning dept (most of them have some kind of walk in surgery) and have an informal discussion about what is and what is not feasible on the site.
I think you need to decide whether you want a separate dwelling or not, if you do then street access is probably a crucial factor that you will have to clear.

jennifernil

I would agree with the above post.

We have a "granny flat" in our house, my mum used to live in it. It does not have separate access as we were not allowed that by planning (house built from new). iI is accessed via our hallway, so easily integrated into the main house should we or future purchasers wish. It is a complete little "flat", lounge, dining kitchen, double bedroom and bathroom, about 80 sq metres.

As we have an "upside-down" house, with all the living rooms upstairs, and the granny flat upstairs, there is no way we could easily rent out the flat, but we are OK with that.

It sounds like you will be having the "annexe" on the ground floor, so much easier to isolate it for renting out. You could easily have a layout that allows this.......and allows it to be part of the main house. Just leave out the door till you need it.

You will pay VAT as it is an extension, but it will be much easier to get PP for an extension.

Savealittle

Don't get too hung up about the VAT either as it will add some cost but won't add 17.5/20% to the total cost.

Example being:

Cost of materials (bought by builder) - £100, inc VAT £120
Cost of labour - £200, inc VAT £240

If you wern't paying VAT to the builder the total cost to you would be £320 (total material cost £120 and labour cost £200), if you are paying VAT to the builder it would be £360 (£120 material cost and labour cost £240).

The builder can reclaim any VAT on goods and then charges you VAT on the total amount. If the builder doesn't charge you VAT you still have to pay VAT on all materials as the supplier will still charge VAT.

Hope that makes sense and helps...

jacky_horn

jennifernil wrote: »

I would agree with the above post.

We have a "granny flat" in our house, my mum used to live in it. It does not have separate access as we were not allowed that by planning (house built from new). iI is accessed via our hallway, so easily integrated into the main house should we or future purchasers wish. It is a complete little "flat", lounge, dining kitchen, double bedroom and bathroom, about 80 sq metres.

As we have an "upside-down" house, with all the living rooms upstairs, and the granny flat upstairs, there is no way we could easily rent out the flat, but we are OK with that.

It sounds like you will be having the "annexe" on the ground floor, so much easier to isolate it for renting out. You could easily have a layout that allows this.......and allows it to be part of the main house. Just leave out the door till you need it.

You will pay VAT as it is an extension, but it will be much easier to get PP for an extension.

Can I ask. Did your mam have to pay council tax. I have a similar situation and some people are saying my mam should pay full and separate council tax. Surely not.