Insurance query

November2

Thanks for replies, CL was already set up when I bought the house and I reopened it this year, honestly thinking of just closing it again as fed up with it all!  Caravan Club said they were aware of members having home insurance issues but had no advice. 

lincroft1710

Savvy_Sue said:

lincroft1710 said:

Savvy_Sue said:

lincroft1710 said:

Unless you are in NI you will not have "domestic rates", you will have Council Tax as will the dwelling element of any property with both business and residential usage.

Although, if any room within the home is exclusively used for business, then business rates may be charged on that area, as well as CT for the rest. It's why it's suggested that one might also use the home office for ironing, or as a spare bedroom, and equip it accordingly.

I'm ex VOA and that very, very rarely happens and in any case if there was a room used exclusively for business use it would not be part of the dwelling element. Where there is a composite hereditament, i.e. part business, part residential, the CT is worked out by a formula using both the value of the dwelling element and the value of the whole property,

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The liability for business rates was assessed by the VOA looking through the window IIRC ...

Which is NOT how it should be done

lincroft1710

Savvy_Sue said:

lincroft1710 said:

Savvy_Sue said:

lincroft1710 said:

Unless you are in NI you will not have "domestic rates", you will have Council Tax as will the dwelling element of any property with both business and residential usage.

Although, if any room within the home is exclusively used for business, then business rates may be charged on that area, as well as CT for the rest. It's why it's suggested that one might also use the home office for ironing, or as a spare bedroom, and equip it accordingly.

I'm ex VOA and that very, very rarely happens and in any case if there was a room used exclusively for business use it would not be part of the dwelling element. Where there is a composite hereditament, i.e. part business, part residential, the CT is worked out by a formula using both the value of the dwelling element and the value of the whole property,

I'm sure it is very rare, but it happened to us at work: residential property, with support workers there 24/7, and one room used as an office. It's a long time ago, so I don't remember any adjustment to the CT, but I recognise your expertise.

The liability for business rates was assessed by the VOA looking through the window IIRC ...

Something else occurs to me.

If this property was a care/nursing home, then the whole property is a "business", the business being providing accommodation for and looking after the welfare of the residents. But because it is also home to several (mostly unconnected) people, that element falls to be assessed to CT. The very nature of the beast usually means that most of the property is used for residential purposes, with perhaps one or even two rooms used for non residential purposes, e.g. matron's office, staff rest room. These would be subject to non-domestic rating.

This set up (which I have encountered) is quite common unlike a room in a single family dwelling used exclusively as an office (which I have never encountered).

Because of their size, care/nursing homes are usually Band G or Band H, so the removal of one room would be unlikely to affect the band.

Savvy_Sue

It wasn't a care or nursing home, better described as supported living for a small no. of slightly vulnerable adults.

As I said, it was a while ago, ultimately we had to close it because we couldn't make the numbers add up. There are VERY few places for people with that particular vulnerability, so it was a sad day. But I believe we did some good for the few we were able to work with.

Getting back to the OP: have you looked for a broker?