Reincorporating an annexe

Bronze

We’re currently looking at buying a house that has an annexe. The annexe is part of the main structure of the house and we’re still trying to establish through the agent whether it was ever all one and if what we think used to be a door was. We would be knocking through anyway.

I rang the council for that area to ask about the council tax as currently the annexe has its own band but they were no help and I’ve sent them an email but I was wondering if anyone had any experience of this or advice.

What I wanted to know was if knocking through would then remove the separate tax for the annexe, and whether the remaining single tax for the whole property would change to a higher band?
Or, if they refused that and it still retained the separate council tax, we knocked through regardless, and if we were to have a child living in the bedroom in the annexe would this then exempt us from that council tax? I believe there is an exemption for children living in an annexe. Again that council was no help though the websites for others in the area give that impression. 

Is there anything else we need to consider if we were to do this?
Thanks in advance 

davidmcn

Are you buying with a mortgage? Lenders tend not to like properties with annexes (even if you're promising to get rid of it).

Bronze

We are. Just over a quarter of the value. It is something we had considered and we know they can be funny but it’s not impossible. 

lincroft1710

Basically if the annex has room for living/sleeping, a kitchen and a WC, it will retain its own CT band. "Knocking through" won't necessarily change that. Merging the annex back into the main house could lead to a higher CT band. Occupation by a "dependent relative" (check the current definition) would probably result in no CT being paid on annex, but I am not sure if a non disabled under 18 would qualify.

greatcrested

Take any information about this from the agent with a pinch of salt.

Thy will have no knowledge so at best will pass on whatever the seller tells them, which might or migh not  be accurate, but  will be subject to 'Chinese whispers'.

And they certainly can't be relied on regarding legal informaion.

Thunderbolts

To be classed as an annexe it has to have its own kitchen and bathroom. Permanently removing either of these and sending evidence to the VOA should be sufficient. They may come and inspect. They may also attach an improvement notice to your council tax band for the main property. 

You need to change things that cannot easily be changed back, like removing plumbing and capping electrics etc. in addition to appliances. It could remain as a utility room with a sink, and keep the bathroom. You just need to enough that it’s longer a kitchen and cannot be simply converted back.
Use a specialist broker to find a lender. I think Nationwide may lend on properties with an annexe.

lincroft1710

Thunderbolts said:

To be classed as an annexe it has to have its own kitchen and bathroom. Permanently removing either of these and sending evidence to the VOA should be sufficient. They may come and inspect. They may also attach an improvement notice to your council tax band for the main property. 

You need to change things that cannot easily be changed back, like removing plumbing and capping electrics etc. in addition to appliances. It could remain as a utility room with a sink, and keep the bathroom. You just need to enough that it’s longer a kitchen and cannot be simply converted back.
Use a specialist broker to find a lender. I think Nationwide may lend on properties with an annexe.

An annex does not need a bathroom, it only needs "washing facilities" (kitchen sink will suffice) and a WC. The VOA will not attach an improvement marker, as the band for the main house will either be increased or remain as it is.I dealt with many annex situations during my time in the VOA and they were always a pain.

Thunderbolts

lincroft1710 said:

Thunderbolts said:

To be classed as an annexe it has to have its own kitchen and bathroom. Permanently removing either of these and sending evidence to the VOA should be sufficient. They may come and inspect. They may also attach an improvement notice to your council tax band for the main property. 

You need to change things that cannot easily be changed back, like removing plumbing and capping electrics etc. in addition to appliances. It could remain as a utility room with a sink, and keep the bathroom. You just need to enough that it’s longer a kitchen and cannot be simply converted back.
Use a specialist broker to find a lender. I think Nationwide may lend on properties with an annexe.

An annex does not need a bathroom, it only needs "washing facilities" (kitchen sink will suffice) and a WC. The VOA will not attach an improvement marker, as the band for the main house will either be increased or remain as it is.I dealt with many annex situations during my time in the VOA and they were always a pain.

I own a house with an outbuilding in Wales. I converted the outbuilding into an annexe. As the change was made after I purchased it, an improvement marker was added to the main house council tax band. The band for the main house did not change. This marker will only affect the next owner if I sell the property. Dealing with the VOA was straightforward. To change back to an outbuilding I would just need to permanently remove the kitchen/ cooking/ fridge and power/ gas supply to them etc. Your experience may be different.

lincroft1710

Thunderbolts said:

lincroft1710 said:

Thunderbolts said:

To be classed as an annexe it has to have its own kitchen and bathroom. Permanently removing either of these and sending evidence to the VOA should be sufficient. They may come and inspect. They may also attach an improvement notice to your council tax band for the main property. 

You need to change things that cannot easily be changed back, like removing plumbing and capping electrics etc. in addition to appliances. It could remain as a utility room with a sink, and keep the bathroom. You just need to enough that it’s longer a kitchen and cannot be simply converted back.
Use a specialist broker to find a lender. I think Nationwide may lend on properties with an annexe.

An annex does not need a bathroom, it only needs "washing facilities" (kitchen sink will suffice) and a WC. The VOA will not attach an improvement marker, as the band for the main house will either be increased or remain as it is.I dealt with many annex situations during my time in the VOA and they were always a pain.

I own a house with an outbuilding in Wales. I converted the outbuilding into an annexe. As the change was made after I purchased it, an improvement marker was added to the main house council tax band. The band for the main house did not change. This marker will only affect the next owner if I sell the property. Dealing with the VOA was straightforward. To change back to an outbuilding I would just need to permanently remove the kitchen/ cooking/ fridge and power/ gas supply to them etc. Your experience may be different.

This is a completely different scenario!

In your case, the annex was in effect an "extension" to the house, therefore it would have an improvement marker. Possibly Welsh CT legislation is different, but in England, if the annex is self contained it would have its own CT band. 

The OP's situation is that there is already a band on the annex, so if it is merged, the band on the main house may increase. If it doesn't then that band will remain even if the house is sold, there is no improvement indicator

Thunderbolts

lincroft1710 said:

Thunderbolts said:

lincroft1710 said:

Thunderbolts said:

To be classed as an annexe it has to have its own kitchen and bathroom. Permanently removing either of these and sending evidence to the VOA should be sufficient. They may come and inspect. They may also attach an improvement notice to your council tax band for the main property. 

You need to change things that cannot easily be changed back, like removing plumbing and capping electrics etc. in addition to appliances. It could remain as a utility room with a sink, and keep the bathroom. You just need to enough that it’s longer a kitchen and cannot be simply converted back.
Use a specialist broker to find a lender. I think Nationwide may lend on properties with an annexe.

An annex does not need a bathroom, it only needs "washing facilities" (kitchen sink will suffice) and a WC. The VOA will not attach an improvement marker, as the band for the main house will either be increased or remain as it is.I dealt with many annex situations during my time in the VOA and they were always a pain.

I own a house with an outbuilding in Wales. I converted the outbuilding into an annexe. As the change was made after I purchased it, an improvement marker was added to the main house council tax band. The band for the main house did not change. This marker will only affect the next owner if I sell the property. Dealing with the VOA was straightforward. To change back to an outbuilding I would just need to permanently remove the kitchen/ cooking/ fridge and power/ gas supply to them etc. Your experience may be different.

This is a completely different scenario!

In your case, the annex was in effect an "extension" to the house, therefore it would have an improvement marker. Possibly Welsh CT legislation is different, but in England, if the annex is self contained it would have its own CT band. 

The OP's situation is that there is already a band on the annex, so if it is merged, the band on the main house may increase. If it doesn't then that band will remain even if the house is sold, there is no improvement indicator

It’s exactly the same scenario. My annexe was given its own council tax band and at the same time an improvement marker was placed on the main house.

lincroft1710

Thunderbolts said:

lincroft1710 said:

Thunderbolts said:

lincroft1710 said:

Thunderbolts said:

To be classed as an annexe it has to have its own kitchen and bathroom. Permanently removing either of these and sending evidence to the VOA should be sufficient. They may come and inspect. They may also attach an improvement notice to your council tax band for the main property. 

You need to change things that cannot easily be changed back, like removing plumbing and capping electrics etc. in addition to appliances. It could remain as a utility room with a sink, and keep the bathroom. You just need to enough that it’s longer a kitchen and cannot be simply converted back.
Use a specialist broker to find a lender. I think Nationwide may lend on properties with an annexe.

An annex does not need a bathroom, it only needs "washing facilities" (kitchen sink will suffice) and a WC. The VOA will not attach an improvement marker, as the band for the main house will either be increased or remain as it is.I dealt with many annex situations during my time in the VOA and they were always a pain.

I own a house with an outbuilding in Wales. I converted the outbuilding into an annexe. As the change was made after I purchased it, an improvement marker was added to the main house council tax band. The band for the main house did not change. This marker will only affect the next owner if I sell the property. Dealing with the VOA was straightforward. To change back to an outbuilding I would just need to permanently remove the kitchen/ cooking/ fridge and power/ gas supply to them etc. Your experience may be different.

This is a completely different scenario!

In your case, the annex was in effect an "extension" to the house, therefore it would have an improvement marker. Possibly Welsh CT legislation is different, but in England, if the annex is self contained it would have its own CT band. 

The OP's situation is that there is already a band on the annex, so if it is merged, the band on the main house may increase. If it doesn't then that band will remain even if the house is sold, there is no improvement indicator

It’s exactly the same scenario. My annexe was given its own council tax band and at the same time an improvement marker was placed on the main house.

This doesn't make sense.

Unless you also did work on the main house there would be no need for an improvement marker. I spent 35 yrs in the VOA, the last 12 dealing with CT appeals and overseeing banding. If an annex was created it was given its own band, there was never an improvement indicator placed on the main house.