Converted double garage into office - business rates?

TheCyclingProgrammer

We're still house hunting and we're off to look at a property on Wednesday that doesn't have quite enough room in the garden for a garden office studio which is what I ideally wanted; however it does have a 10m long double/tandem garage.

This would probably serve as a good office, by converting the back half of the garage into an office and leaving the front half as a usable garage. It would probably be cheaper than a decent garden studio too.

I'm still looking into the issue of planning permission (it's a bit unclear whether it would be necessary, assuming permitted development rights haven't been removed) but I'm really not sure whether this would potentially make the converted office liable to business rates. Does anybody know?

From what I understand, if there's still an element of mixed use then business rates shouldn't apply. This could be done by making the office double as a summer house (and I do like the idea of sticking some fancy bi-folding doors on and building a decked patio off the building). Throw some seating and maybe a TV in there. Or would the fact that only half the garage building is being used as an office with the other half still a garage be enough to make it mixed use?

Is this likely to be a problem?

Finally, if permitted development rights have been removed, is planning permission likely to be an issue for something like this? We'd still be left with a usable single garage and there is room for off-street parking for at least one other car, possibly two.

lincroft1710

If it can clearly be seen that part of the garage is being used solely as an office, then that part can be assessed for non domestic rates. There does not need to be any physical division between the two parts.

As this would be a change of use, planning permission would be required.

TheCyclingProgrammer

lincroft1710 wrote: »

As this would be a change of use, planning permission would be required.

I'm not sure it would; at least not for this reason. It would definitely need building control sign-off though.

I do suspect it will require planning permission however as based on my research so far, it seems like permitted development rights may have been removed. There are a few planning applications on the same street for conservatories which as far as I understand would not normally require PP.

A house a few doors down has had it's single garage converted into a gym (discovered on Rightmove listing) without planning permission although they may have just ignored this or found out they didn't need it.

I'll be sure to quiz the vendors when we view the property as they may have looked into this themselves already - a 10m long garage seems such a waste of space when the plot is already constrained.

Regarding sole use: well this is where it all gets a bit ambiguous. Nowhere seems to be able to give a definitive yes/no answer. Everything I read says "such and such *may* mean you are liable". Some things say showing clear mixed use would not make you liable. Other things say any structural changes (which I'm sure would include a partial conversion) would make you liable.

My current thinking would be to just apply for planning permission to turn the back of the garage into a summer house that happens to double up as an office. As I said in my OP, a nice set of bi-folding doors, decking, a sofa and coffee table etc. Who would know that I'm also using it as an office some of the time?

Bantex_2

What would be the difference between using a garage as a office and using a spare bedroom?

TheCyclingProgrammer

Bantex wrote: »

What would be the difference between using a garage as a office and using a spare bedroom?

In this case, the fact that building work would be required to convert half of the garage into a usable space. This could involve upgrades to the walls, the partial removal of a wall to add windows/doors, supply of heating/electricity, insulation, lighting, plastering etc.

Annie1960

Many people use a room as a study at home, and I'm sure they don't all pay business rates.

eddddy

Hi TheCyclingProgrammer

What sort of 'business activities' will you be doing? If it's clerical stuff (sitting at a desk with a computer and no business visitors), just call the room a study.

If you start calling it an 'office' - you will have issues with planning consent (change of use), buildings insurance (mixed residential and business building), residential mortgage t&cs, business rates etc, etc. (Plus planning consent for change of use back to residential, when you want to sell it.)

Bantex_2

Just call it a home office.

Bantex_2

TheCyclingProgrammer wrote: »

In this case, the fact that building work would be required to convert half of the garage into a usable space. This could involve upgrades to the walls, the partial removal of a wall to add windows/doors, supply of heating/electricity, insulation, lighting, plastering etc.

Which anybody can to to their garage without having to classify as a commercial buildings. Many garages are insulated and plastered with heating and electricity.

TheCyclingProgrammer

Annie1960 wrote: »

Many people use a room as a study at home, and I'm sure they don't all pay business rates.

Sure, that's my thinking. I'm just cautious and want to make sure going to the effort of converting half the garage to be partially used as an office isn't going to cause me a problem.

@eddddy: I'm a software developer and consultant. All computer based, no clients visiting. I work from home approx. 80-90% of the time, with the rest on client sites.

My main concern is business rates; I'm not sure planning will be an issue and if home insurance doesn't cover it I'm happy to purchase business contents insurance through my business. I do intend to check all of the things you list though.

TheCyclingProgrammer

Bantex wrote: »

Which anybody can to to their garage without having to classify as a commercial buildings. Many garages are insulated and plastered with heating and electricity.

I agree and whilst I wouldn't personally classify the intended end result as a "commercial office", the valuation office/council might disagree. From what I can tell, different councils have different attitudes.