Can I AirB&B an annexe that I am not permitted to rent?

Colleen_Lennon

Hello

we purchased a 5 bed house but 2 of the bedrooms are in an annexe which has its own separate entrance, kitchen and bathroom - so there is a separate council tax on the annexe. We only use the main dwelling so as the annexe is totally unoccupied we have been given a class T exemption on the second tax (it has spare furniture in there but as we have no garage or loft its just used for storage). During the purchase we were advised that we would not be permitted to rent out the annexe and we don't really want anyone in there permanently, sharing our garden (plus there's only one meter for electricity for the whole house including the annexe). I'm unsure as to why we're not allowed to rent out the annexe though presume previous owners had not obtained permission to make it a separate dwelling (it was a house with a shop and is now just a house).

Its such a shame we can't use the annexe and I was wandering if the rental restriction would apply if we just went short stay AirB&B route (which has been suggested by an estate agent). I appreciate we would then need to pay council tax on the annexe (though i'm not sure if we'd be allowed to pay it pro-rata based on occupancy, as it may not be worth going this route at all e.g. say we only had AirB&B visitors one weekend out of a whole month - what we could potentially charge wouldn't cover the council tax never mind other costs), I appreciate we'd also have to declare any AirB&B income on my self assessment. And I know we'd need a separate TV licence as we'd need to put a TV in there if we had AirB&B guests, but i'm also wandering if we could avoid the TV licence for the annexe if we only used an Amazon firestick in there - we just got one for Christmas but we already have everything the firestick would give us access to via the smart TV in our main dwelling so the firestick is redundant unless we use it in the annexe (I have just gone through the set-up and I can delete BBC iPlayer from the firestick options)..

many thanks in advance for any advice!!

Comms69

You need to find out why you were told that. It will determine what you can do.


Ask your conveyancer to explain

theartfullodger

So someone has got exemption from council tax as nobody is occupying it yet they plan for someone to occupy it??

What, please, is your view of tax or benefit cheats? (A calm, polite, question, not an accusation).

How about explaining to the council what you are planning to do and, obviously, offering to pay any council tax due? If it's all OK no problem.

btw just because it's AirBnB doesn't mean it's not a tenancy or a rental.

CommitedToChange

You need to read it again artful, they didn't say they would leave the council tax exemption in place

" I appreciate we would then need to pay council tax on the annexe (though i'm not sure if we'd be allowed to pay it pro-rata based on occupancy, as it may not be worth going this route at all e.g. say we only had AirB&B visitors one weekend out of a whole month - what we could potentially charge wouldn't cover the council tax never mind other costs)"

Gibbro

Is the annex an addition to the property? If so it could have a planning restriction on it that it is not let.

If it was the conveyancer that advised you of this then I would think this is the reason.

Mortgage company should be fine with Air BnB as it would fall under a lodger and not commercial if the footprint of the annex is less than 40% and not setting up ASTs. Will depend on the lender.

teddysmum

Gibbro wrote: »

Is the annex an addition to the property? If so it could have a planning restriction on it that it is not let.

If it was the conveyancer that advised you of this then I would think this is the reason.

Mortgage company should be fine with Air BnB as it would fall under a lodger and not commercial if the footprint of the annex is less than 40% and not setting up ASTs. Will depend on the lender.

But would the occupiers be classed as lodgers, when the annexe has separate entry so is classed as a separate dwelling ? A lodger shares the home with the landlord.


There may be council tax due if they find out about the stored furniture:


In 1972, (the year we bought a new build), Rates did not need to be paid for up to 12 months(?) on an unoccupied property ,but if you stored anything (except fitted appliances) therein, the Rates became immediately payable, as the premises were considered to be used.

Madmel

I'm not in exactly the same position, but I hope my experience may help a little.

We own a former farmhouse with associated buildings. 2 of these were converted into houses. One could be sold separately but would be a nightmare because it would compromise access to the other 2. The other smaller unit cannot be sold on separately. Like yours, it has its own front door, kitchen, bathroom and bedrooms. We let it out, not through AirBnB but as a holiday rental. Our insurance allows one guest party to stay for a maximum of 13 weeks, so we cannot get into ASTs.

As far as Council Tax is concerned, we pay business rates on this unit. However, as it is quite small and we do not have visitors all year round, we receive 100% small business rate relief, so it actually costs us nothing in rates. We still pay for insurance and the standing change for water, whether or not anyone stays.

It may be worth enquiring from your local council the threshold at which SBR applies to see whether or not it would be worth your while. Then do your sums.

Mutton_Geoff

My house purchased a year ago has a one bedroom attached annexe. I don't have the advantage of any council tax holiday (Chiltern council) but I have claimed a rebate on my stamp duty under HMRC "Multiple Property Relief". I also have been told by 3-4 insurers that they will not cover me if I use AirBNB to let the annexe due to the high level of claims they have experienced.


These two issues worth looking in your situation too.