Renting out annexe?

[irregularegular]

I'm interested in an amazing house which has a fairly large annexe. At the moment the annexe is lived in by the owner's elderly parents, but the only way we could afford the house would be to rent it out (or even sell it). Does anyone have any experience of doing similar? What are the implications likely to be for the mortgage? planning? insurance? Where would be the best place to go to find out? The annexe has an independent entrance, but at the moment there is one internal door (which obviously could be closed).

I think you are right sunnyshores.

Is renting as a holiday let an option, there are better tax breaks for that. Youd have to do all the bookings, cleaning etc yourself though, otherwise you'd be hard pushed to break even too.
(been thinking about options myself too, but Im quite risk adverse --and unsociable so its not ideal!-)

How are there better tax breaks for holiday letting? Suspect not quite enough demand to be honest. And I'd definitely have to pay a cleaner!

I've had a brief chat with the EA's mortgage adviser. He's going to ring around some lenders and get back to us. But basically he thought that given it would be mostly residential we would probably be better off just getting a single residential mortgage on the whole property and benefit from lower mortgage rates that way. He said a standard high street lender wouldn't do it, but a specialist would. I'd still like to know more about the ability to offset interest against the tax bill though!

I dont know what exactly, just that its better than traditional BTL

Which mortgage lenders allows you to let out an annex and live in the main house? Does anyone have any advice? Thanks

Irregularegular - I know your thread is old, but wondering if you ended up buying the house? The situation sounds exactly like the situation I am in now! Love big house, already has annex, need more money! Wondering what you have learnt about renting out this type of property. Thanks in advance if you are still reading this thread.

It is not necessarily true that you need change of use planning to rent out an annexe. Weren't ours through Air InN and didn't need planning, we checked.

It has been rather lucrative for us, but it obviously depends on location.

That should read we rent ours out through Air BnB

Hi I hope someone can help! I live in Kent with my partner and 14 year old son, unfortunately my partner has had a serious accident and we both have had to give up work I have to care for him ! We have had to now be in receipt of UC and pip until he makes a recovery! My parents live in Cornwall and they have an annex they rent out but the tenant is leaving my mum has offered it to me but I’d have to pay rent will I still get UC that will help me with rent ?
thabk you

Be careful about utilities and the possibility that if you create a separate unit of housing it would require separate council tax band increasing the overall council tax cost if that can't be offset. Airb&b requires planning permission in my area

I wondered this, could it be let as though the tenants were “lodgers” , if the electricity is communal for both areas then this might count as being a lodging rather than a separate tenancy. Disclaimer, no idea if this is possible!

@Spuddypants

I would start your own thread for this, tenancies between relatives are possible but have to be very clearly set out.

Thank you how do I do this

Go to the top of this thread, there is an oval shaped label saying “start new thread” click on this , write a title for the thread eg Can I claim UC if renting from my mum, then write out your thread as you have done above.

The rent a room scheme might work.

Thank you I think I do have to pay separate council tax as the annexe isn’t attached to the house it’s the rent I was more worried about because I will need UC to help

It's worth finding out the council tax position and bands to be certain, I don't know how the rent and UC interact with each other but tenants don't always pay on time and there are gaps between tenancies so financially the income from the annex would need to be estimated well and cover more than the minimum at any one time to make ends meet is the way I would see it. Does the annex have a separate address?

Thank you it doesn’t have a seperate address but it completely separate from the house