granny flat worries

Jenniefour

PasturesNew wrote: »

You should already be paying separate council tax on the annexe.

With respect, I don't think that's the case. As OP says, the granny flat does not have it's own separate electricity and gas supply. It is not a independent dwelling in it's own right at all.

I have friends who built a completely separate granny one storey accomodation in their garden for their mother. In all respects it is treated as part of their own property. Shares same electricity, gas and sewage supplies and is all treated as one dwelling. And council tax paid as one dwelling. But they will not be able to sell it, if they wanted to, as a separate dwelling.

OP, I think the way around this is to advertise a part property share of some kind - saying that, in fact, because of the layout of the property the tenants in effect have their own house where they will have exclusive use - and an agreement to share costs of bills percentage wise.

CIS

With respect, I don't think that's the case. As OP says, the granny flat does not have it's own separate electricity and gas supply. It is not a independent dwelling in it's own right at all.

That doesn't matter - if you read the pdf file it gives specific guiance on shared gas/electric and the fact that they don't prevent it being a seperate dwelling.

I have friends who built a completely separate granny one storey accomodation in their garden for their mother. In all respects it is treated as part of their own property. Shares same electricity, gas and sewage supplies and is all treated as one dwelling. And council tax paid as one dwelling. But they will not be able to sell it, if they wanted to, as a separate dwelling.

It should be banded seperately - the fact they would sell it along with the main property doesn't affect it.

dancingfairy

What can your parents do to help you? at the moment they appear to be getting free rent, free council tax? etc - perhaps they can contribute some rent towards the house so you can afford it whilst you go travelling? Otherwise they are going to be there and have to possibly share? with new tenants and may also of course have to deal with any issues that come up? or are you going to go through an agent? I can't see you organising a plumber in the middle of the night etc from Australia or this that or the other has broken.
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BitterAndTwisted

Very interesting question an a similar situation described in the following thread:

https://forums.moneysavingexpert.com/discussion/2997590

This is about a converted garage and it has been assessed as a separate dwelling and Council Tax has been therefore demanded.

dancingfairy

I have to admit that was my first thought as well that is should be liable for council tax. I forsee a can of worms here for the OP unfortunately.
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BitterAndTwisted

One can of worms labelled "Council Tax", another labelled "Tenant Not Happy About Sharing Energy Charges With Strangers Next Door" and one more labelled "Absentee Landlord Collecting Rent And Not Paying Income Tax On It And HMRC Now Demanding It From Us!".

Do you have a mortgage on this property at all?

theoretica

My parents' had the garage converted to a granny flat and were hit with paying council tax separately. However, after much arguing they managed to persuade the council that the main property should be downgraded a band when the new council tax charge was added for part of the property. The house sold relatively easily (back near the peak of the market) to someone who was planning to continue to rent out the granny flat so I have no idea about problems with recombining the properties and going back to one council tax.

Errata

The biggest problem is going to be the shared utilities. How will you sort that out?

olias

OP also states they currently "pay lowest band council tax for the whole property". The house appears to be very large as it has not just an annexe, but a "granny bungalow attached". When the OP approaches the council to have the annexe banded (as I fear they will have to do), then there is a high likleyhood that the principal residence may also be re banded into a higher bracket.

As one reply has put it - a can of worms!

Olias

CIS

When the OP approaches the council to have the annexe banded (as I fear they will have to do), then there is a high likleyhood that the principal residence may also be re banded into a higher bracket.

Unless its scotland then its the Valuation Office would need be approached regarding the property banding.

The main property will still fall in to a Band A (unless the VOA can find that it was banded in error then the main property wont be re-banded except on sale or transfer of ownership) but the annex would likely be a Band A unless its very large.