keys in the door of a granny annexe

Does A Garden Annexe Add Value To Your Home?

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Granny annexes have become extremely popular over the past decade with many families adding annexes to their homes for elderly relatives to live in or grown children.

Alongside the granny annexe, garden annexes, in general, have become very popular – these aren’t normally used as a permanent home but rather add additional living space to the main home. Sometimes used as a games room or a home office.

We’re sure if you have recently added an annexe to your property, you are too busy enjoying the extra living space or spending time with loved ones to consider selling. But all homeowners are always curious about the value of their home, and whether any works carried out will likely increase value when it comes to selling.

Will a granny annexe add value to your property? Read on to find out.

Can A Granny Annexe Add Value To My Property?

Just from a kerbside appeal point of view, yes, a granny annexe is likely to add value to your home AND attract buyers who may not have been interested in your property otherwise.

There are buyers out there actively looking for homes that come with attached annexes or granny flats.

This is likely due to the rise in multigenerational homes. More and more people are choosing to care for elderly parents at home as the cost of building an annexe can often offset the costs of private care or a care home. There are also younger people struggling to get on the property ladder and see annexes as a cheaper alternative.

An annexe offers the inhabitant a private space of their own, much like living in their own bungalow but the only difference is the annexe is situated in a relative’s garden. Lots of people enjoy this closeness and the comfort it brings knowing loved ones are nearby.

Bluebell Granny Annexe with Flat Roof
Bluebell: One-Bed Annexe

Families may choose to pool money together and look to buy a property that already comes with an annexe or granny flat – if you have a granny annexe in your garden it automatically becomes more attractive to this type of buyer.

Even if a potential buyer was interested in your home but didn’t need the annexe for a relative, the prospect of a separate self-contained home in the garden is still appealing to a wide range of people. Any additional space is good news when it comes to selling your home!

How Much Value Would A Granny Annexe Add To My Home?

Just how much monetary value a granny annexe can add to your home is much debated.

There are quite a few variables, and prices range depending on where in the country you are.

The type of annexe you have is also important.

For example, if the annexe is, in reality, a poorly constructed shed, it isn’t going to be appealing to buyers or add any value. The type of annexes that add value are the type that is built to last.

An annexe is more than a garden room or a shed – they are built to be permanent and are self-contained units with sleeping space, a full kitchen, a bathroom and a connection to services such as water and electricity.

Modular annexes or brick-built annexes are in high demand with home buyers as the people who have these types of annexes are usually enjoying them and not willing to sell their homes. This commands a premium if the owner should decide to sell.

As mentioned, estimates vary but Property Investor Today reported that many experts believe one of these high-quality annexes could add 20-30% to the value of your property.

Can I Sell My Annexe and Property Separately?

Owning an annexe adds to the saleability of your property and as advised in Property Investor Today, present you with a unique marketing opportunity when you sell your home, but you also need to be clear on what the annexe can and cannot be used for.

a granny annexe kitchen

For example, if you were thinking about selling your annexe and home separately, that would be impossible in most cases as at the planning stage, annexes are really extensions to the main property that is to be used for members of the household or dependant relatives. Annexes and the main home are essential one property in terms of planning.

It is also important to be clear to prospective buyers who look at the annexe as a business opportunity that they would need to speak to your Local Authority regarding this as again, granny annexe planning permission is often conditional on a defendant relative living in the space. That means you can’t, for example, let the annexe out as a holiday let or cottage.

Thinking About Adding Value With An Annexe?

As demonstrated, a granny annexe can add considerable value and appeal to your home but that isn’t the reason families choose to buy them.

A granny annexe is often installed to meet a specific need, maximise space, care for relatives or just bring the family closer together.

If building an annexe is something your family is thinking about please get in touch, or feel free to download our brochure.

granny annexe council tax pound coin

Granny Annexe Council Tax – Could You Be Exempt?

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Customers often ask us if they need to pay council tax on their granny annexe – it is better to be informed of any potential ongoing costs once your annexe is built and council tax could be one of those.

However, in most cases, our customers are either exempt from paying council tax on their annexes or will receive a 50% discount.

Read on to find out why.

Pre 2014 Annexe Tax

Before 2014, a granny annexe was usually subject to full a council tax bill just as though it were separate property. The second council tax bill was applied to any other additional living spaces such as granny flats or extensions.

Long before this change, many families spoke up about the unfairness of this, seen as most annexes or granny flats are built to help care for dependant relatives – an additional council tax bill could be a deterrent when it came to families staying together to look after loved ones.

The Government recognised the commitment of many families across the country caring for dependent relatives and scrapped the charge in 2014. Multigenerational living has increased significantly in the UK with parents moving in with their children, and due to the housing crisis, younger people choosing to stay home or move back in with parents.

The introduction of the new council tax scheme meant granny annexe owners would be either exempt from council tax or would receive a 50% discount.

Former minister for local government and adult social care, Kris Hopkins said on the scheme:

“it is only right we help hard-working families by giving people the choice to live with extended family without having to pay the price twice through double taxation in their Council Tax bills. Councils must pass this discount on to those who are rightly entitled to it. By cutting these taxes on family annexes we are sending a strong message that we want to help extended families stay together.”

person with paperwork, pen and coffee

Granny Annexe Council Tax Exemption

The occupant of your granny annexe will be exempt from paying council tax providing they are:

“A dependant close relative who lives in the annexe and they are over 65 years of age or they are either severely mentally impaired or substantially and permanently disabled.”

The occupant will also likely be eligible for the exemption if they are a full-time student.

Annexes that can’t be let separately (which annexe planning permission doesn’t usually permit) that are currently unoccupied will also usually be exempt from council tax. For example, if the occupant passes away or moves elsewhere.

Granny Annexe Council Tax Discounts

If your granny annexe isn’t for a dependant relative then you will likely have to pay council tax but will be eligible for a 50% discount, provided that the annexe is used as part of the main property (for additional space, for example) or is occupied by a relative of the person paying the council tax for the main property.

Uttlesford District Council define a relative as the following in their annexe guidance:

“Relative is defined within the regulations as a spouse, parent, child, grandparent, grandchild, brother, sister, uncle, aunt, nephew or niece (including older generations of each e.g. great grandparent).

Additionally please note:

i) This includes relatives by marriage or civil partnership

ii) Two people living together as if they were married or in a civil partnership will be treated as though the couple were married or in a civil partnership and

iii) The stepchild of a person shall be treated as his/her child.”

Further Information

The information on exemptions and discounts in this blog were taken from the website of Uttlesford District Council for illustration purposes but most Local Authorities (LA’s) have the same rules on council tax and annexes.

If you’re planning on building an annexe you should check with your own LA for confirmation – the information should be easy to find by searching online for ‘granny annexe council tax’ and the name of your area or Local Authority.

For further information on building an annexe or any aspect of planning, please get in touch.

consultation service

What Is Householder Application?

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The term Householder Application is likely something you will have come across if you’ve been researching planning permission for granny annexes.

Householder Planning Applications

Householder Applications are planning proposals used by homeowners to alter or enlarge their home. This also includes any buildings and extensions added to a garden.

This application method is commonly used for different types of garden buildings such as granny annexes or garden annexes. In some cases, it may also be needed for sheds or garages.

For granny annexes, planning permission is nearly always needed and a Householder Application is the most used method.

Householder Applications are decided by your Local Authority planning department – your Local Planning Authority (LPA). Your application will usually be handled by just one case officer and the planning decision will be granted by the management team.

Although planning is similar across the country, each LPA will have slightly different processes and specific local policies. Therefore it is important to seek professional guidance when applying as a planning professional will understand these differences between each LPA.

Sycamore Granny Annexe with Pitched Roof
Sycamore: Two-Bed Annexe

Granny Annexe Householder Application

Here at Family Annexe, we take care of planning permission on your behalf so there is no need to worry about Householder Application. It is still useful to know the process though and what we will do for you.

Before we get started on your granny annexe, we apply for planning on your behalf by submitting a Householder Application to your Local Planning Authority (LPA) – this is our preferred method to obtain planning permission as in most cases it is a simple process and goes smoothly.

Where we see there may be an objection that can’t be worked around, we also apply under the Caravan Act. We will always inform you which methods have been used beforehand.

As mentioned, the Householder Application is usually a very straightforward process but if you live in a Conservation Area, National Park or Area Of Outstanding Natural Beauty the LPA conservation officer will need to be involved to ensure your annexe fits with local restrictions.

For more information on Householder Application, The Caravan Act and to see a timeline of the planning process please visit our granny annexe planning permission page.

Planning Included

Planning permission can be an area of worry when you are thinking about building a granny annexe – you may have worries about cost or having to deal with any complications.

The good news is that in most cases we include planning permission as part of our service, including the costs.

We can do this for several reasons. As a small, family business we have lower overheads and because we’ve worked in the trade for many years, connections, and contractors we can work with enabling us to get better prices.

We also have a dedicated planning permission expert on hand which means we can process applications efficiently and with the best professional knowledge and guidance.

If you have any questions about our planning service or the Householder Application process, then please feel free to get in touch and speak to one of the team.