Should I rent out our garage (once converted)

cobbingstones

Hi

I have a small dilema about whether we should convert our double garage into a 1 bedroom property. Basically the internals are 16' x 16' and I would put a bedroom up top which including the en-suite would be around 9' x 16'. The building is detached and I would basically split our drive in two so they can park 2 cars. So on this possibility can I ask a couple of questions to anyone with any experience on this please?

1. I'm pretty handy, even with RSJ's etc, has anyone done something similar? If so how much would you estimate the materials?

2. Could I get away with sticking the mother in law in there and claim for her accomodation as my name is obviously different to hers, or better stick to other people via an agency (was thinking better the devil you know )

3. Would it be worth adapting it for someone disabled, and renting for someone less advantaged?

4. Finally, does anyone know what the threshold is for income from rentals before paying tax (i.e, if it was in my wife's name who is a stay at home mum)

Any advice would be much appreciated.

Many thanks

Justin

PasturesNew

I've seen these and to me, they don't look appealing. But those were attached, yours is detached. It all smacks of being the "poor cousin" for the semis.

The space is good enough as a studio, I am currently renting one over a foot smaller in both directions.

Re [3] You would only be able to use the ground floor space and you wouldn't have enough room for disabled access and them being able to live in it. Doors have to be wider etc and the person couldn't be in a chair as there's just not the room imho.

If you are renting it, you'd have to declare the lot as it's not part of your own home. You can't use the Rent A Room scheme for this. They would be a tenant with an AST. So it would be a business. Rent A Room (about £80/week) is where the lodger shares your home and you have shared space. The person in the garage would be a tenant with an AST. Your wife could, though, use her personal tax allowance (about £5200/year) for this as she's got no other income.

Re [2] - could be tricky to "claim" as she is related. Any renting to family members has to be able to provide a business case that the property really IS an investment/rental in its own right - and not a way to get your hands on dss money. The name being different is irrelevant as the claim forms ask about relationship to landlord etc.

I am assuming you know you have to apply for planning permission and that building regs would apply.

mitchaa

This question was asked by the O.P a couple of days ago on the benefits forum and she was quickly shot down and the thread was deleted.

Not sure why she has now got her hubby to ask the exact same question again.

Basically, they want to be able to claim HB for the mother in order to fund their garage conversion.

Garage conversion = Increase in house price for their benefit, funded by you, me and the honest paying taxpayer.

I can't see how it would work anyway, the garage would still be part of the original address which would mean its irrelevant if she lived in the garage or lived in a spare room within the actual house. The housing dept are not stupid either, they'll clearly be able to tell that your wife and the tenant are mother and daughter. If not then you'll be committing fraud.

Its almost as good as the woman on the benefits forum just now trying to claim HB for her son who lives with her.

cobbingstones

Hi ParstersNew

Many thanks for your advice. Sorry what's an AST (tennancy agreement?), being a bit thick today ;-).

I realise I would need building regs for the upstairs structural part and fire escapes/doors etc. But was not aware I'd need planning permission. Is that because of any neighbours objecting, or because the building will be changing its status from a garage to a dwelling? If because of the neighbours, that would be a pain, as they have just had a loft conversion with oodles of windows overlooking without a mere 'is it ok if we....'.

The bit about point 2. We would be much happier having the mother in law rent it. She is getting on a bit and could do with the company, but we cannot afford to spend x pounds converting it to get nothing back. It's a shame the dss won't see it this way. After all, they have to pay god knows how many pounds at the moment providing her with sheltered accomodation.

Many thanks again for your help.

Justin

mlz1413

the tax allowance for 2008-2009 is £5435 so a monthly rent of £450 will fall below your wifes allowances if she is not getting SMP from a place of work.

Re the benefits I agree you cannot have house benefit to fund a garage/building conversion. But if a relative is disabled you can get DLA (disability living allowance) and carers benefits depending on how bad the disability is and they can be living with you.

taxdoctor

Just a quick word of waring re the tax situation.

We have had a few cases like this lately, if HM Revenue look into this for any reason they could say that the income should have been split 50:50 between husband and wife as the property would be owned in joint names.

Just a thought.

cobbingstones

Dear Mitchaa

I'm not trying to defraud anyone including the taxman, dss or you the taxpayer. Just trying to make an honest living from a resource we have. Plus the point about increasing the price of the house is not true, as one, we have no interest in selling, and two, even if we did we'd probably have to convert it back to a garage.

Regards

Justin

PasturesNew

The planning permission issue can be complex. There isn't a black and white answer.

It will include things like:
- have you used your permitted developments
- is the size of the garage being changed (it is if you're putting in a first floor
- is it more than or less than 5m from your house
- are there any rights to development without permission that have been removed from your area by the Council for a variety of reasons (e.g. new builds, conservation areas).

You should speak to the planning office, anonymously, to find out if it is needed.

An example website shows the following:
http://www.stoke.gov.uk/ccm/navigation/environment/planning/do-i-need-planning-permission-/garage---convert/;jsessionid=a_UoViTi7ck7
- it MAY need permission
- building regs ARE required

Building regs are always required for any work anyway.

I see the biggest issues over that first floor you want to put in. This would be increased space. It also indicates you might have to increase the roof height. Then there's the issue of the current foundations. You might have to knock it all down, dig down and start again. Building regs would dictate this.


Might be worth reading this recent thread too:
http://forums.moneysavingexpert.com/showthread.html?p=9180351


Cost? No idea. Depends partly on building regs, quality of finish, how much you're doing yourself, professional fees.

cobbingstones

mitchaa wrote: »

This question was asked by the O.P a couple of days ago on the benefits forum and she was quickly shot down and the thread was deleted.

Not sure why she has now got her hubby to ask the exact same question again.

Basically, they want to be able to claim HB for the mother in order to fund their garage conversion.

Garage conversion = Increase in house price for their benefit, funded by you, me and the honest paying taxpayer.

I can't see how it would work anyway, the garage would still be part of the original address which would mean its irrelevant if she lived in the garage or lived in a spare room within the actual house. The housing dept are not stupid either, they'll clearly be able to tell that your wife and the tenant are mother and daughter. If not then you'll be committing fraud.

Its almost as good as the woman on the benefits forum just now trying to claim HB for her son who lives with her.[/QUOT

Dear Mitchaa

To clarify some points if I may? Firstly, I did not tell my husband that I had previously posted, hence the mistake of another post. Secondly, I asked the board guild to remove after having second thoughts, it was NOT deleted. Also your hard earned tax money that you are raving about will help with the cost of providing care for my mother and other poor souls who need 24/7 care due to her mental illness. I wanted her near me so I could provide that. FREE!!!

Anyway enough said. Please in future think about the whole story, instead of attacking.

MM

Doozergirl

If you're putting in new wastes, running services to the garage etc then it's a proper conversion. I'd budget a good £700 per square metre, both upstairs and down if you are using subbies.

I would call in an arcitectural technician to design the space for you, advise you and help with planning and building regs.

It doesn't sound like a great space for a disabled person. Ideally they will need one level - it's a bit of a pain if you have to go upstairs, even in a lift, to go to the loo!

PS. There is a relevant question that needs answering here; benefit fraud doesn't really come in to it. Converting a garage into a potential source of income is a super money saving idea. Flaming the OP seems childish to me.

Errata

Are you sure youll get planning permission for what is to all intents and purposes a new dwelling?