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Annexe -SDLT advice
Deepz0112
Posts: 1 Newbie
We are buying a property, where previously the garage has been partly converted into an annexe. The annexe is self contained, with a separate accesses. Electricity, Gas and Water is shared with the.main property. Current owners had rented out the annexe and the annexe is separately registered in the city council. Me and my wife are joint owners of our property which We are selling and buying our next main residence to-be. Both of us do not have any other properties.
Our solicitors are suggesting we may need to pay a surcharge of 3% on the transaction unless we can confirm that value of the annexe is less than 1/3rd the value of the main residence.
We got an RCIS certified surveyor to value the annexe but they were unable to do so as there is no independent boundary to the annexe. We thought it would be easy to value the annexe by qualified professionals and by various people in the trade. However we have got a blank.
We have tried to read through the guidance issued by HMRC but we are not confident if we are interpreting the guidance accurately. We think the value of the annexe should be less than 1/3rd the main residence since the VOA previously had assessed the property and provided Band A for council tax purposes. Can we use the council tax banding as a guesstimate?
We would like advise and guidance to below issues
1/ How can one value an annexe which doesn't have any real boundaries? What should be done in such cases?
2/ What rights do we have with our solicitors? Our solicitors want us to give them in writing that the value of the annexe is less than 1/3'rd the value of main residence. How can we give this in writing given that we are not qualified to value?
Appreciate any help/guidance on the above from experts in the forum. Many thanks.
Our solicitors are suggesting we may need to pay a surcharge of 3% on the transaction unless we can confirm that value of the annexe is less than 1/3rd the value of the main residence.
We got an RCIS certified surveyor to value the annexe but they were unable to do so as there is no independent boundary to the annexe. We thought it would be easy to value the annexe by qualified professionals and by various people in the trade. However we have got a blank.
We have tried to read through the guidance issued by HMRC but we are not confident if we are interpreting the guidance accurately. We think the value of the annexe should be less than 1/3rd the main residence since the VOA previously had assessed the property and provided Band A for council tax purposes. Can we use the council tax banding as a guesstimate?
We would like advise and guidance to below issues
1/ How can one value an annexe which doesn't have any real boundaries? What should be done in such cases?
2/ What rights do we have with our solicitors? Our solicitors want us to give them in writing that the value of the annexe is less than 1/3'rd the value of main residence. How can we give this in writing given that we are not qualified to value?
Appreciate any help/guidance on the above from experts in the forum. Many thanks.
0
Comments
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What CT band is the main house in? If it is band E or above that may help your case.
Or maybe apportion by gross floor area.0
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