Planning issues with any extension build project have the potential to be complicated but when considering an annexe, there are several points to take into account.
Whether a property already has an existing, interconnecting 'granny' annexe, a completely separate unit or whether the plan is to separate part of the home to potentially let it, the configuration can all make a big difference to how a Local Planning Authority is likely to view the situation - as well as what the owner wishes to do with it.
Definition of an Annexe
An annexe is defined in planning guidance notes as:
Council Tax and Annexes
Contrary to popular belief, a home does not have to have a separate entrance or front door to be liable for a separate council tax charge. The Valuations Office, a branch of HMRC and the department responsible for setting Council Tax on properties, deems an annexe to be liable for separate banding if it could be classed as a self-contained unit - i.e. it has its own kitchen area, bathroom and sleeping/living space - even if it shares other services and entrances with the main house. Two sets of Council Tax could be levied if a property has an annex, so you'll need to consider that if you are:
- building an annexe
- buying a house with an annexe
- designing an extension to include an annexe
You may be able to apply for a 'Class T' exemption to the second amount of tax if it is possible to prove that the annexe is :
- for sole family use
- for someone who is substantially mentally or physically disabled
- for a relative over the age of 65
Flexibility of an Annexe
Annexes seem to have grown in popularity over recent years as they are a relatively simple way of utilising a home or extension in the most flexible way. For some, they can provide a useful extra income through renting out the additional space whilst for others, an annexe can provide future security as families plan for ageing relatives and 'boomerang' children who return to live at home after university.
Letting an Annexe
What is crucial, however, is to be clear as to how the annexe may be used right at the planning stage. If the annexe is to be commercially let at any time, then Change of Use Planning will be required and it varies hugely from LPA to LPA (Local Planning Authority) as to how such projects are viewed. Back in 2012, there was talk of permission being scrapped for annexes but so far nothing has happened and it is vital to check with the council before commencing any work. Detail of exactly what is permitted can be found on page 40 of the government guidance notes: Permitted Development for Householders - Technical Guidance.
Wider Implications of Letting an Annexe
It follows that if the annexe is to be let, then there will be further implications and responsibilities to consider. The mortgage lender will need to be informed and again, depending on the provider,attitudes will vary as to whether they look favourably on this or not. Insurance will also need to be checked as some home insurance companies, such as Direct Line, don't take on residential landlord's insurance and of course there will be tax implications from the resulting revenue stream in renting the property.
Becoming a Landlord should not be taken lightly and it would be wise to consider legal obligations such as gas safety checks, fire regulations and access to the annexe at an early planning stage as it could mean expensive alterations to the house as a whole.
Letting Rooms within the Home
If the property already has an 'internal' annexe - i.e. it isn't completely separate from the main house but has its own bathroom, then one option available, in consideration of any extension build plans, is to let the rooms to a lodger. This is certainly possible - and financially very beneficial - under the Government's Rent-a-Room scheme. This scheme allows a person to earn up to £4200 per annum tax free by letting out a portion of their home. What is clear, however, is that:
- The owner of the property must be living at the home
- The property owner must have regular access to the lodger's area
- The kitchen must be shared. If the annexe section has its own kitchen and is separable from the main part of the house then this, under council legislation, is deemed to need separate planning.
An annexe then, can be a flexible, useful and potentially profitable addition to a home - but it can also bring with it a minefield of red tape - mainly between the Valuations office and the Planning office - and could saddle the home owner with the unanticipated role and responsibilities of acting as Landlord. So before making any plans to buy, build or alter a property with an annexe, it is important to have that conversation with the Local Planning Authority first.
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