Buying a house with an unregistered annex - advice

ben5053

Hi All,

I'm looking at a house currently and wondered if someone could help shed some light on a few things. The house was extended 10 years ago on the basis of creating a dining room, snug and a larger bedroom/ensuite (looked at the planning portal). It's at the top of our budget and we were thinking we could make the mortguage more palatable by utilising the rent a room scheme and at some point my wife's dad moving into it.

1. It currently has what is described by the estate agent as an annex. There is a door through to the main house but it has a kitchen and bathroom. Is it an annex if there is no external door? Loophole? What are the criteria?

2. At what point in the buying process do the council reevaluate the council tax bandings? What triggers it? Would someone need to tell them there is what could be considered an annex? 

3. I understand if the annex ends up needing to pay council tax it will be band A. If it started paying would the main houses council tax be reduced due to 1 less bedroom and smaller footprint? 

Thanks in advance. Can't really afford to be paying 2 sets of council tax if we don't manage to rent it. Also,  does this just sound like a nightmare waiting to happen? Beleive if the annex gets officially recognised it affects the mortguage. 

gwynlas

The EA might describe it as an annex but theses are just words, some families have a second kitchen for dietary/religeous reasons whilst others would call it a utility room. A downstairs bedroom with ensuite is just that and a snug is a snug home office or craft room. To utilise the rent a room scheme your lodger needs a bedroom and use of other facilities. If you choose not to use those facilities because you do not wish to that is your perogative, Your FiL moving in at a later date still does not make it an annex

NameUnavailable

A friend had this issue. I understand that if the annex has it's own entrance, separate from the main house, then it will be considered as a separate dwelling and have its own council tax bill.

As your 'extension' is accessed via the house then it's not a separate dwelling.

The council queried it after he bought and the land registry was updated.

lincroft1710

If an annex is accessed from a hallway or passage of the main, house which has a door to the outside then it can have its own CT band providing, of course, it meets the criteria of being a separate dwelling (for CT banding).


If the annex is separately assessed there is no guarantee that it will be Band A (although this is most likely) or that the band of the main house will be reduced.


When an extension has been completed, the council will inform the VOA who will log it so that following the next  sale of the property it will trigger a need to review the CT band. 

FreeBear

lincroft1710 said: If an annex is accessed from a hallway or passage of the main, house which has a door to the outside then it can have its own CT band providing, of course, it meets the criteria of being a separate dwelling (for CT banding).

Kinda remember someone posting about a house they were looking at that had a kitchenette & second bathroom on the top floor - Council/VOA had decided that it qualified for its own banding, and it would have been a major battle to overturn the decision.

If the OP goes ahead with this purchase, I wouldn't be surprised if the annex did get its own banding. Being pretty much self contained, it is doubtful the space could be rented out under the rent a room scheme.

propertyrental

Recenly sold a house with an annexe. Separate entrance, own bed/living room; bathroom and errr..... utility room (I took the cooker out).

No separate CT, though I suspect that may become an issue some time for the new owners.

No one queried anything, not the buyers, their soliocitor or their mortgage lender.