Second home or annex?

KittyMac

Sorry long question.

We purchased a property last year that has a second property within its boundary. A barn converted in 2001 to a residential dwelling and it was lived in by the daughter of the main house. It states on the deeds that permission could only be granted to convert the barn to a granny/family annex and that the property as a whole is for single-family residence only.

It appears that the planning passed in 2001 makes no mention of this single family/no letting out covenant as a planning restriction and so the Council Tax Department view it as a second home and are now charging just under £6000 a year in the double second home council tax.

Obviously, I have queried it, as the property, although independant in services, sits next door to our house and shares our garage and we purchased it under the impression it was an annex.

According to our Deeds we could not let it out if we wanted to.

The council tax department have said it is a second home and can be rented out and that they have no interest in covenants on deeds and as such is not eligible for any exemptions or reductions of any kind.

Anyone have any thoughts on if it is possible to retrospectively have a condition added to the planning permission that states it is to be used as an annex only as this was obviously an oversight at the time of planning being passed? Or any other comments - its a huge amount of money so we would have to rent it to try to recoup the cost -  if we ignored the covenant and rented it out potentially it could ruin our enjoyment of our hard earned retirement forever home and I assume there could be legal repercussions if the covenant restrictions were challenged by the neighbours with whom the covenant rests.

It cant be sold separately to the main house as it has no land registry of its own, no right of access from the main road even without using our drive.

Any help appreciated as to what we could do.

Emmia

Could you demolish it?

Flugelhorn

Could remove kitchen / bathroom then it might stop being a dwelling - what do you do with the property these days? 

QrizB

KittyMac said:

It states on the deeds that permission could only be granted to convert the barn to a granny/family annex and that the property as a whole is for single-family residence only.

Who is the other party for the covenant on the deeds? Whose rights will you be impinging if you were to let it? You've said "neighbours", were they historically the owners of your plot?

KittyMac said:

It cant be sold separately to the main house as it has no land registry of its own, no right of access from the main road even without using our drive.

Splitting a plot into two separate properties is a relatively straightforward transaction. If the covenant could be discharged, you could potentially do this.

KittyMac

Emmia said:

Could you demolish it?

It’s too nice and we were hoping (when time comes) that it would actually have a granny in it.

KittyMac

Flugelhorn said:

Could remove kitchen / bathroom then it might stop being a dwelling - what do you do with the property these days? 

We wanted to use it as an annex, one of the reasons for buying the property was that eventually MIL could move in

KittyMac

QrizB said:

KittyMac said:

It states on the deeds that permission could only be granted to convert the barn to a granny/family annex and that the property as a whole is for single-family residence only.

Who is the other party for the covenant on the deeds? Whose rights will you be impinging if you were to let it? You've said "neighbours", were they historically the owners of your plot?

KittyMac said:

It cant be sold separately to the main house as it has no land registry of its own, no right of access from the main road even without using our drive.

Splitting a plot into two separate properties is a relatively straightforward transaction. If the covenant could be discharged, you could potentially do this.

It was with church commissioners but has passed to the neighbouring land owners as all the land has been sold off over the years - I believe it could be lifted. But we really wanted it as an annex as that was how it was sold to us.

QrizB

Has the status of the annex changed recently?

If not, the previous owners will surely have known that it was treated as a separate property for council tax purposes? Was this not disclosed during your purchase?

Flugelhorn

KittyMac said:

Flugelhorn said:

Could remove kitchen / bathroom then it might stop being a dwelling - what do you do with the property these days? 

We wanted to use it as an annex, one of the reasons for buying the property was that eventually MIL could move in

could move MIL in now - then it would go back to to standard CT for the property.

it is very difficult with these annexes - I am seeing many properties with them struggling to  sell.  

njkmr

I would be tempted to register yourself in one property and your partner in the other.
You would then actually get single person discount on both properties.
Not saying this is legal but it's an option.

jackieblack

Have you gone back to the solicitor who did the conveyancing with the query?