Renting our Attached Annexe

gkm24

We own a house that we bought with my In laws as it had a attached building which was used as offices. We got planning consent and changed its use to convert to an Annexe for my in laws to live in. Sadly my Father in law has now passed away and my Mother in law now resides in a care home as she has Alzheimers.
We would like to rent the Annexe which has its own access and parking on our land but also has a door link into our house. We have just blocked the access door with a stud wall which complies with building regs, fire etc and are hoping to rent the accommodation.
I am aware that I need to contact my mortgage lender as we have a small mortgage and that I I need to inform my insurance too. The Annexe has its own bedroom, bathroom, and now a kitchen too.
My question is, do I have to notify the council to get it tax banded? I have no problem in doing this as I want to fully comply with the law but obviously don't want to find that once I start paying the tax, that there was another option. The property is oil fired and has no gas. It also has metered electricity but the meter is in our utilities cupboard. I also understand that I need to get it EPC rated too.
Any advice on my plans would be very welcome as this is all very new to myself and my Wife.

G_M

I would ignore the council tax banding. If the issue did not arise when you got PP, ignore it.

Your occupants will be tenants, with various rights (including the newly introduced ones - 1/10/15), so start with this post and look at the links within it:

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

both from:

Tenancies in Eng/Wales: Guides for landlords and tenants

gkm24

Thanks for the reply.
I will look at the info that you directed me too.
I remember when we converted the Annexe to living accommodation that the council said that if it had a kitchen or a cooker socket, that it would be liable for tax banding.
Is this not the case any more?
I am writing this before I look at the info that you directed me to so apologies if I'm jumping the gun.

pmlindyloo

gkm24 wrote: »

Thanks for the reply.
I will look at the info that you directed me too.
I remember when we converted the Annexe to living accommodation that the council said that if it had a kitchen or a cooker socket, that it would be liable for tax banding.
Is this not the case any more?
I am writing this before I look at the info that you directed me to so apologies if I'm jumping the gun.

I have to disagree with G_M ( a first!).

When your mum and dad lived there it was a completely different scenario to now when you wish to rent it out.

Plus, it seems that adding a kitchen now makes it a self contained unit.

You need to check your planning permission notification. Ours said that you cannot rent it out to someone other than a relative.

If there is no such clause then you will need to check with your local council re: council tax (plus the other things you mention)

Useful link:

http://www.manchester.gov.uk/info/200028/council_tax/6395/council_tax_for_annexes

theartfullodger

Further to GM's comments I don't think the tenants will be AST tenants but "common law tenants"... as the annex is attached & it wasn't a "purpose build block of flats".

If so no s8, s21 or deposit protection (assuming England or Wales)

Rambosmum

I agree with pmlindyloo. Good friends of ours bought a house recently which had an annex (bathroom, bedroom, kitchen, no entrance to their part of the building). It was liable for council tax - they intended to turn it in to one big house but had to pay two lots ofcouncil tax until the two buildings were conjoined (one kitchen removed, door knocked through to main house).

G_M

theartfullodger wrote: »

Further to GM's comments I don't think the tenants will be AST tenants but "common law tenants"... as the annex is attached & it wasn't a "purpose build block of flats".

If so no s8, s21 or deposit protection (assuming England or Wales)

True.

Shelter's tenancy checker :

http://england.shelter.org.uk/get_advice/downloads_and_tools/tenancy_checker

theartfullodger

G_M wrote: »

True.

Shelter's tenancy checker :

http://england.shelter.org.uk/get_advice/downloads_and_tools/tenancy_checker

Thanks GM..

Suspect it is very likely that any prospective tenant, agent, council housing officer etc won't understand the point ...