when does building a new house become renovation?

Wig

Scenario,

A terrace house where you want to knock down the house and build from scratch (to avoid VAT) If you connect with the next door house as it was before, is it technically a "new build"?

In the event you did not want to connect and you left 2 butress' (one front and one rear) I suppose you would be liable if any weakness was caused to your neighbours house and for any water ingress through the exposed party wall, I suppose normal practice is that the party wall must be externally rendered? And would building a detached property in this way be considered "new build"?

ken_and_dot

What does your planning permision say?

adr0ck

as far as i'm aware if you knock down a house and build a new one on the same plot its considered a new build

Badger_Lady

Yes - I'm sure you can still attach to existing party walls. Mind you, my "expertise" is based on watching Property Ladder! :rotfl:

ken_and_dot

To demolish and rebuild would be a new dwelling and would certainly require planning permission. If you left the adjoining wall exposed you would certainly have to ensure it was in a sfae and weatherproof condition. Would there be sufficient sapce to build a detached house on the site of a demolished terrace house? And finally, the cost of demolition and rebuilding a new dwelling is likely to considerably exceed the cost of renovating the old property even including the cost of VAT.

If you demolished and rebuilt a new attached terrace house again you would need planning permission. Provided you cleared the site completely and started again with new foundations then it would be a new dwelling but ask the VAT help line. They are very helpfull. You would still have to pay the VAT up front and recalim it once you had the completion certificate. This is quite a complicated process so if you go down that route make sure you keep good records and all invoices/receipts.

Doozergirl

For VAT purposes, I understand that you can leave one wall standing of the old house and it still qualifies for VAT relief. Building a completely detached house of course means you get the relief.

Impossible to say what would save money - if you are totally gutting the property and building a considerable extension, or it really is wrecked, there may be a benefit to starting from near scratch. A detached house in a suitably sized plot would be worth more than an EOT so you would benefit best financially if you did that.

Without doubt you'd need a surveyor to assess what you have to do with the 'new' end of terrace and it's newly exposed wall. Render would certainly look better than the remnants of your old internal plaster and wallpaper!

chappers

Doozer you are correct you can leave one wall standing or two if on acorner plot. I don't know a bit of 1970's flock might look quite fetching instead of brick.
Don't forget party wall act.

Blimey must need some serious rennovation or considering some serious addition if you are considering demolition to save vat

Doozergirl

chappers wrote: »

I don't know a bit of 1970's flock might look quite fetching instead of brick.

I'm thinking you perhaps leave in a nice feature fireplace and that Ikea print of grey stones over the mantel

Wig

It is a hell hole of a house, and would IMHO only benefit from an extention adding 200% to the size of the house (thus tripling the size) this would inevitably require the old roof being completely renewed. And because of damp problems the only real solution is to demolish and rebuild completely. And if I am doing that, I might aswell build detached rather than terrace (there is room).

However it is too much work and money for me. I was just wondering what the tax situation was regarding using the party wall within the new house.

SquatNow

Damp problems can definately be resolved WITHOUT KNOCKING THE WHOLE F*****G HOUSE DOWN.

Just gut the place and have the damp course renewed.

"would only benefit from having an extension 200% the size of the house"???? Absolute rubbish! Besides if you extend it that much you will almost certainly block out everyone elses light... so no way will you get permission for an extension.

You've been watch WAAAAAAAY too much property !!!!!!.