Rent a section of house as holiday let?

jblakes

It's not the difficulty to do it, it's the what's involved and it's it worth it. 

Thrugelmir

jblakes said:

It's not the difficulty to do it, it's the what's involved and it's it worth it. 

Have you had the various options costed and determined if they will add value tothe property? 

jblakes

Not as such, we have only just got planning permission for an extension which will allow access to the cellar from inside the house, so it's just a idea of what to do with the cellar. 

lucypilates

jblakes said:

Would it fall under an annexe? It will basically be a floor of the house that would be in use when not rented out. It would have a bathroom and kitchen but would be assessable from the house and also have its own entrance. 

I have exactly this .. bedroom, sitting room, shower room and small kitchen with its own front door, access to the shared garden and internal access to the main house via internal doors (albeit fire doors) to the main kitchen.

This was built by previous owner and so when I bought it, it triggered the valuation office to give it its own Council tax banding . So I now have 2 Council taxes to pay tho luckily my mother is 100% exempt due to her age.

 If the annexe subsequently becomes unoccupied, I ‘think’ it will also be exempt.

 My intention is to Airbnb it in future and from what I understand, I will have to register it as a holiday let, Council tax will change to business rates and I will need separate insurance … hopefully it will be quite a few years before I have the option to do that but that’s what I understand it to be.

 Annexes have their own criteria for Council tax so well worth familiarising yourself with your specific councils way of handling them.

CIS

 If the annexe subsequently becomes unoccupied, I ‘think’ it will also be exempt.

If it's empty it'll be a a full charge with most councils.

Annexes have their own criteria for Council tax so well worth familiarising yourself with your specific councils way of handling them.

The rules are the same across all English councils (annexe being a specific definition in legislation, for a specific purpose).

My intention is to Airbnb it in future and from what I understand, I will have to register it as a holiday let, Council tax will change to business rates and I will need separate insurance

The rules on that are expected to be tightened so that more of these sort of properties stay within council tax.