Council Tax Guidance for Properties With Separate Dwelling Granny Flat / Annexe

CIS

Lastly, if it's only Class T that IS dependant on planning / restriction, Interestingly then, why would anyone pursue putting a planning restriction in place if it devalues the overall property?

You don't get a choice, it's a council decision.

What is the advantage of a class T? 

It means you aren't stuck paying council tax where the council have placed the planning restriction on the property.

For the 50%... what formal procedure do I need to do to get that reduction?

Apply to the council and show that the relevant criteria are met.

lincroft1710

Class T only relates to CT payments, it has no bearing on anything else. The only advantage in having the planning restriction is so you would qualify for a Class T, which would mean you didn't have to pay CT on the annexe if it was unoccupied. Whether or not an annexe qualifies for Class T, it would still be an annexe.

Conveyancers, mortgage brokers and lenders do not visit properties. They rely on what is presented to them by their clients and vendors' conveyancers. The only person who would visit would be the lender's surveyor/valuer. So I would suggest that if the lender was not aware of the annexe, then it was  the fault of their surveyor/valuer for not bringing it to their attention.

SteeleyScott

lincroft1710 said:

Class T only relates to CT payments, it has no bearing on anything else. The only advantage in having the planning restriction is so you would qualify for a Class T, which would mean you didn't have to pay CT on the annexe if it was unoccupied. Whether or not an annexe qualifies for Class T, it would still be an annexe.

I see, so is it fairly standard practice for these properties with annexes existing... on a standard residential mortgage? Should you decide you'd want to let it out, at that point it'd have to be on a BTL? I suppose that rationale is no harsher scrutinised than any single residential property.

lincroft1710 said:

Conveyancers, mortgage brokers and lenders do not visit properties. They rely on what is presented to them by their clients and vendors' conveyancers. The only person who would visit would be the lender's surveyor/valuer. So I would suggest that if the lender was not aware of the annexe, then it was  the fault of their surveyor/valuer for not bringing it to their attention.

I would agree that it's their fault. Though it will undoubtedly be my problem in 5 years if it becomes an issue at remortgage time. Even if I can prove its the surveyor/valuer's fault I guess that won't necessarily help me secure another mortgage with them in the future. 

SteeleyScott

CIS said:

Lastly, if it's only Class T that IS dependant on planning / restriction, Interestingly then, why would anyone pursue putting a planning restriction in place if it devalues the overall property?

You don't get a choice, it's a council decision.

Well, why would the council decide to put a class T on something then? Under what circumstances would they want to do that? if it means they're getting no CT, I imagine it's not in their best interest? 

CIS said:

For the 50%... what formal procedure do I need to do to get that reduction?

Apply to the council and show that the relevant criteria are met.

.... to council planning control or council tax?  What is the formal procedure to show the criteria are met for the 50% reduction? 

lincroft1710

I'm not a mortgage expert, my background was CT banding, but it would seem reasonable that an ordinary mortgage would be suitable for a house and annexe. With regard to letting out the annexe, the easiest thing is to discuss with your lender 

SteeleyScott

Update - had a response from the council finally. Disappointing.

Basically said "Yes, we do have guidelines, Class W is occupied, Class T is unoccupied, please fill in this form with as much information as possible"
No mention of the 50% reduction.

I've told them that I need much clearer guidance than that before proceeding with anything, as their descriptions, compared to all other official pieces of literature (which i've pointed them to)....were a little bit incomplete. 

I'm not going through this process just for them to say ok actually we got this wrong, lets start again. Or being overcharged in the process.

CIS

SteeleyScott said:

Update - had a response from the council finally. Disappointing.

Basically said "Yes, we do have guidelines, Class W is occupied, Class T is unoccupied, please fill in this form with as much information as possible"
No mention of the 50% reduction.

I've told them that I need much clearer guidance than that before proceeding with anything, as their descriptions, compared to all other official pieces of literature (which i've pointed them to)....were a little bit incomplete. 

I'm not going through this process just for them to say ok actually we got this wrong, lets start again. Or being overcharged in the process.

Happens all the time with councils (If it didn't, I'd be out of clients and business !) They have no powers to vary the legislative provisions, so their guidance means little.

SarahJK

Not sure if this will help you 
We bought a house in March this year with an annexe as well.  The owner who had it built (two owners ago) used it as a granny flat and it was taxed as A with the rest of the property on an E band.  The owners we purchased from had it re-banded as they were paying two lots of council tax so then the property went on to an F band. They said that the person from the council came to the house and said if there was no kitchen in there then it wouldn't be classed as a separate dwelling, so they took the kitchen out.  They then started using it as their business head quarters so it was then moved onto business rates.  
When we moved in the council started charging us two lots again A band for the annexe and E for the house.  I queried it and eventually they said it would be removed.  This was back in June and now they have put the band up to F (which I thought they might) and want the backdated payments.   

lincroft1710

SarahJK said:

Not sure if this will help you 
We bought a house in March this year with an annexe as well.  The owner who had it built (two owners ago) used it as a granny flat and it was taxed as A with the rest of the property on an E band.  The owners we purchased from had it re-banded as they were paying two lots of council tax so then the property went on to an F band. They said that the person from the council came to the house and said if there was no kitchen in there then it wouldn't be classed as a separate dwelling, so they took the kitchen out.  They then started using it as their business head quarters so it was then moved onto business rates.  
When we moved in the council started charging us two lots again A band for the annexe and E for the house.  I queried it and eventually they said it would be removed.  This was back in June and now they have put the band up to F (which I thought they might) and want the backdated payments.   

It will be the VOA who dealt with both the CT banding and the rating the business part, not the council.

If the council started charging you on Band A and Band E, then it sounds like one of three things happened.

1. The rating assessment was removed from the annexe and Band A was reinstated or 

2. The CT band was never removed from the annexe or

3. The council were charging you on an historic banding

Summersun07

I am looking for some advise. We had a extension done on are house and after 4 years we put in planning to separate but we didn’t carry out the works as more involved in separating when planning come round, but now the council is charging us two lots council taxes. Had voa round to review and they are saying it is a self-contained dwelling but we have access to it and using the utility with all my white goods haven’t got any fridge/freezer or washing machine in main kitchen. How can we get rid of the self-contained.