To take the gift or not. What's going to better in the long run?

w4terfall

Thanks for the link by the way da_rule. Somehow in all of this I missed the fundamental line
'you didn’t buy it just to make a gain'
i think a re think about the whole situation might be on the cards.

Thanks for your input ����

Cakeguts

w4terfall wrote: »

Council tax yes, address no.

Where we are situated backs on to a council owned park. Planning was given for the building to be built as an annexe not as an independant address. Hence we have to wait until the 5 year mark to re apply. At that time if they grant that it can exist as an independant property we can split the two on the deeds.

Right so you don't have planning permission do you? You have planning permission for an annex to the building that is already there but you have built a separate dwelling and you are trying to get round the fact that you don't have planning permission for a separate dwelling by waiting 5 years and hoping that the council won't serve an enforcement notice on you.

w4terfall

Completely wrong.

We do have planning for a two bedroom annexe which is what was built.

You don't have to believe me that's your opinion to have.

da_rule

It's a bit of a tangent, buy why do you think that they'll allow you permission to essentially change the type of building from an annex to a separate dwelling in 5 years if they weren't willing to let you do it at the original planning stage?

Cakeguts

w4terfall wrote: »

Completely wrong.

We do have planning for a two bedroom annexe which is what was built.

You don't have to believe me that's your opinion to have.

I believe that you have planning permission for a 2 bedroom annex what I don't believe you have planning permission for is a house that is a separate dwelling and not an annex. If you are going to live in it as an annex you don't need separate access from the main house because an annex uses the same access and you don't need to split the plot because an annex can only be used as part of the original house.

If this truly is an annex then it can only be used by the owner or tenants of the main house it cannot be lived in as a separate house on its own plot because you don't have planning permission for that.

da_rule

And yes, the buying it solely to make a profit clause is one that is often missed. People think that if they just live there while they are doing the renovations or trying to sell it then that will suffice.

w4terfall

Vehicular access. there was none and now there is. An old side extension on the main house has been removed creating enough access for a car to get through.

Still, thanks for the actual answers I needed nearer the top of the thread. Rather than being called a lier near the bottom.

1st and last post on here i think.

da_rule

That sounds fair enough, if you have overcome the objection the council had and that was the reason they were only willing to grant planning for an annex rather than a separate dwelling re-applying would seem like a good idea.

I hope you haven't taken offence to anything I have said, I was just curious as it did sound for a bit like you didn't have permission at all. And the restrictions on splitting the title sounded a bit odd, but make perfect sense in relation to it being an annex and not a separate dwelling.

w4terfall

So to conclude:-

When renovating to sell on il pay CGT anyway so I may as well take the gift, use the equity I can receive from the mortgage, don't bother splitting the plots and take the hit when the inlaws die.

Thanks for helping me out. Sorry for over reacting 10 mins ago.

da_rule

Just something to bear in mind if you do take the gift and then mortgage against it. You will essentially have tenants (your in-laws), which may impact on what mortgage you can get.

You will also have to think when they die, will there be enough cash to pay the inheritance tax due. If they leave everything to each other there would be spousal exemptions they could benefit from.

Also, there can be implications related to gifts with reservation of benefits should either of them ever need to go into care.