Annexe as part of main building - options

[Lance]

So are there deeds to two properties? Given there are two addresses and it's registered as two properties for CTax, are you buying both? How would you prove you own 17a?
Just curious really.

1 x land registry registration
1 x contract of purchase for the whole thing
2 x property information forms

Not seen the deeds as I haven't completed.

[d000hg]

Yes it's freehold.
It's a basement conversion to an annexe.

So are there deeds to two properties? Given there are two addresses and it's registered as two properties for CTax, are you buying both? How would you prove you own 17a?
Just curious really.

[Lance]

You say it is two properties for purposes of council tax and has separate utilities, so what exactly are you buying? The freehold to the property or something? Are there separate title deeds i.e. can you rent the flat or even sell it... I forget how this all works even though I own a flat in a house!

Paying two sets of CTax sounds like a PITA although maybe it's like £100pcm and not really a concern in the grand scheme of things... if you recombine your main property banding might go up anyway I suppose. Perhaps keeping them separate is handy for future flexibility.

CAn you get between the two properties or are they walled off?


Not even that, it's pretty standard to terminate a rental agreement in fact unless it's an AST (which you have to honour) the old tenancy agreement automatically ends as it's with the previous owners.
J-Hole is just being an A-hole and seemingly forgetting this isn't General.

Yes it's freehold.
It's a basement conversion to an annexe.
We can't get between the two yet as the doors have been sealed. But apparently the stair case is in place so it's just door sorting.


As for AST....... Well there's a long story.... To cut it short....
2 lenders that said they are happy with AST. One basically wasn't and even with the tenant named on the mortgage offer, and the conveyancer told to get some paperwork they point blank refused to release funds if not vacant.
2nd lender. Also happy with AST... The conveyancer conditions had 'property must be vacant on completion'.

No time for a 3rd lender, so the vendor is booting the tenant out.

[d000hg]

I suppose I'm struggling with why you'd buy a property that has this extra space you have no use for.

It's a freebie with the house they want. We use less than half our house but we like the house.

[d000hg]

You say it is two properties for purposes of council tax and has separate utilities, so what exactly are you buying? The freehold to the property or something? Are there separate title deeds i.e. can you rent the flat or even sell it... I forget how this all works even though I own a flat in a house!

Paying two sets of CTax sounds like a PITA although maybe it's like £100pcm and not really a concern in the grand scheme of things... if you recombine your main property banding might go up anyway I suppose. Perhaps keeping them separate is handy for future flexibility.

CAn you get between the two properties or are they walled off?

Why is he a ******? He doesn't want the hassle.

Not even that, it's pretty standard to terminate a rental agreement in fact unless it's an AST (which you have to honour) the old tenancy agreement automatically ends as it's with the previous owners.
J-Hole is just being an A-hole and seemingly forgetting this isn't General.

[Lance]

This. I'd get in and settled first and then see if it's spare. Might get ideas for kids snug, office or full golf simulator you didn't know you could consider at this point.

But my thoughts. Airbnb is very location dependant. I used to rent a one bed and bathroom under house annex in Kennilworth while I was working in Coventry which was done to a high standard and it was booked every weekend. Lots around there to do and see so was a good location. If you are near anything of note with a nice town nearby and that I'd say AirBnB it. Code operated keybox outside and you need never meet the guests. Unlikely nowadays but might get some dirty contractor wanting to do 5 nights at a bit of a discount as well. 7 night bookings for 6 months. They made an absolute mint out of it.

You can probably make more from the AirBnB if it works than tenants but it's an option but I don't think I'd be that keen to have people so close. Can they hear you and can you hear them? I wouldn't want a dream house to then put up with that so I'd wait and test it out to see if it would inconvenience you at all.

If it's part of your own home and you are using it I believe most councils would give you a 50% discount on the taxes but you'd have to check that with your local council.

Failing that you could screw the bathroom and kitchen doors shut so technically it won't have washing and cooking facilities

good shout on 'check the noise levels'. That's gonna be quite an early job.
It's a very desirable location and has a lot of tourists in the summer (despite being in the North). Hence why AirBNB is more likely than a tenant. It also means that we can have guests to stay at arms length.
Ideally we'd get a cleaner on contract to do the AirBNB cleaning anyway (they can keep the whole £25/£35 or whatever as longs as they don't need managing and it just gets done).

I will call the council sooner rather than later.

[Lance]

I get that, if everything else stacks up then you just put it in the box marked "figure that out later"

yes. It's very much in that box whilst I formulate thoughts. But I do want a vague idea before I have to have 2 insurance policies, 2 electricity contracts, and 2 x lots of council tax.

[northernladuk]

I get that, if everything else stacks up then you just put it in the box marked "figure that out later"

This. I'd get in and settled first and then see if it's spare. Might get ideas for kids snug, office or full golf simulator you didn't know you could consider at this point.

But my thoughts. Airbnb is very location dependant. I used to rent a one bed and bathroom under house annex in Kennilworth while I was working in Coventry which was done to a high standard and it was booked every weekend. Lots around there to do and see so was a good location. If you are near anything of note with a nice town nearby and that I'd say AirBnB it. Code operated keybox outside and you need never meet the guests. Unlikely nowadays but might get some dirty contractor wanting to do 5 nights at a bit of a discount as well. 7 night bookings for 6 months. They made an absolute mint out of it.

You can probably make more from the AirBnB if it works than tenants but it's an option but I don't think I'd be that keen to have people so close. Can they hear you and can you hear them? I wouldn't want a dream house to then put up with that so I'd wait and test it out to see if it would inconvenience you at all.

If it's part of your own home and you are using it I believe most councils would give you a 50% discount on the taxes but you'd have to check that with your local council.

Failing that you could screw the bathroom and kitchen doors shut so technically it won't have washing and cooking facilities

[ladymuck]

Nice house. Good area. Great investment (hate the idea of a buy to let so property investment will always be my home. The Annexe is just there)

I get that, if everything else stacks up then you just put it in the box marked "figure that out later"

[Lance]

I suppose I'm struggling with why you'd buy a property that has this extra space you have no use for.

Nice house. Good area. Great investment (hate the idea of a buy to let so property investment will always be my home. The Annexe is just there)

If you never intend using it then why not put up a Ukrainian refugee family for a while?

Good call. I will look into that.

Do you have children? What age? Would they appreciate their own space? If so, you could officially bring it into the main house again but keep it a bit separate. That would give you flexibility for a variety of ad hoc uses - be it AirBnB, or a Monday - Friday commuter let, or for your kids to hang out in, etc.

That is a longer term plan. The progeny is only 11, but when she reaches 16 I can imagine her moving in, but that doesn't preclude me making it part of the main residence, if only to save council tax.

[ladymuck]

I suppose I'm struggling with why you'd buy a property that has this extra space you have no use for.

If you never intend using it then why not put up a Ukrainian refugee family for a while?

Do you have children? What age? Would they appreciate their own space? If so, you could officially bring it into the main house again but keep it a bit separate. That would give you flexibility for a variety of ad hoc uses - be it AirBnB, or a Monday - Friday commuter let, or for your kids to hang out in, etc.

[Lance]

I'm not doing the booting. The clue is in BEFORE WE COMPLETE....
So wind yer neck and keep the winking for general.
Well done for taking a perfectly reasonable question straight off topic before the first response. That must be a record.

[SueEllen]

Why is he a ******? He doesn't want the hassle.

[jainnode]

The tenant is being booted out before we complete.

<mod snip> Infracted. No winking in the Professional forums.

[Lance]

Scenario
I am buying a new home. It has a 2 bed annexe in the basement. Currently this is rented out. Planning permission to convert to annexe was done and change of use.
the annexe has a different postal address ( 17a as opposed to 17). It has its own electricity supply and meter.
The tenant is being booted out before we complete.


I am considering the following options
1) Use as an Airbnb
2) Rent to a tenant
3) Convert back to the main residence

Why I'm struggling
Bluntly I don't know what I'm doing. We don't need the extra space. But also don't need hassle.

• Council tax. I understand that I will have to pay council tax unless it's rented to a tenant or I get planning to put it back as part of the main residence.
• CGT. If it's rented at any point there will be a portion of the property that would be subject to CGT on sale.
• I can get £7,500 rent per year without impacting my personal tax but that's only if it's a rent a room. So that would involve it being part of the main house, be furnished and I'd need to throw them a bacon sarni twice a week or summat.

Has anyone else had similar, or any dealings with annexe? Just looking for ideas.
Are any of the thoughts wildly wrong? Have I missed something glaring?