We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Separating house into 2 addresses
Climate123
Posts: 3 Newbie
Hello
Please can someone advise, we bought a townhouse 4 years ago for 300k and are looking to now seperate it into 1 x 3 bedroom house and convert the garage into a stand alone flat.
We estimate the house will be then worth 300k and the flat 200k.
We then want to rent out the flat and sell the top house and move somewhere else.
Sounds easy right? I am concerned that there will be numerous tax pitfalls that I am not aware off and would really appreciate any advise about this from someone who knows about this sort of thing, as I am worried after the building costs it may not be worth our while.
Please can someone advise, we bought a townhouse 4 years ago for 300k and are looking to now seperate it into 1 x 3 bedroom house and convert the garage into a stand alone flat.
We estimate the house will be then worth 300k and the flat 200k.
We then want to rent out the flat and sell the top house and move somewhere else.
Sounds easy right? I am concerned that there will be numerous tax pitfalls that I am not aware off and would really appreciate any advise about this from someone who knows about this sort of thing, as I am worried after the building costs it may not be worth our while.
0
Comments
-
Climate123 wrote: »Please can someone advise, we bought a townhouse 4 years ago for 300k and are looking to now seperate it into 1 x 3 bedroom house and convert the garage into a stand alone flat.
Sounds easy right?
Have you checked that the council will allow this?0 -
Are you in England and Wales?
Is so a freehold house with parking becomes a leasehold maisonette without parking..
Is there a shared entrance?
Which property gets the garden?
You might make money on this, but the house part will become an elaborate flat, and may have a niche market.There is no honour to be had in not knowing a thing that can be known - Danny Baker0 -
At best you will end up with a flat and 2 or 3 floor maisonette possibly with a parking problem and leasehold tenure.
At worst you will be refused planning permission.If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0 -
thanks for the reply's, lots of houses along our bit have done this, we think we will get planning permission but this is our first port of call.
We will create its own entrance and will have 1 x parking spot, 3 bed gets the house
I am mainly concerned about what we will have to pay when we rent it out, if we will have to pay a massive amount in tax, rent will be about 800pm0 -
*gets the garden0
-
The tax you pay will be based on your income from the rent. Should you sell the flat, then you may well have to pay Capital Gains Tax.
Most councils only allow this type of conversion where it will provide a "granny flat" for an aged relative and impose a planning restriction forbidding the sale of the flat separately from the house (and vice versa). Your council must be one of the few exceptions.If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.2K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards