Anyone built a granny annexe?

[PosiePootlePerkins]

Hi all. I was wondering if anyone has been through the process of building a granny annexe in their garden. This could become a real possibility for us in the next couple of years to provide accommodation for my aunt. She would be doing it for financial reasons ie selling the house she owns, paying for the granny annexe to be built, and living off the remaining money.
We have enough space in our garden and could make it a private area for her. We are literally at the beginning of thinking about this so any thoughts or advice very gratefully received. Thanks?

I have heard of it becoming a problem if dementia is involved, or arises later. Either because the person will not stay in their own annex (comes over constantly day and night) and/or because they now need a care home and there is no house to sell to pay the fees. Social services can look on it as 'deprivation of assets ' I.e. you have made your own house bigger and more valuable using the person's money.

Getting thanks for your reply. Yes it is sensible to look ahead to the time when she may need a care home. If she sold her house then she'd have that lump sum, minus whatever she pays for the annexe, to live on, so she should be fine for living costs, but whether there would then be a large enough pot of money left to pay nursing home fees I don't know.
I am not sure if we'd be seen to add value to the house as the annexe would not be an extension of our house, but a separate dwelling in the garden. Actually I am reflecting on some of your comments that it may make the house harder to sell eventually. It could be marketed as a garden studio/office, which would not seem out of place with the size of the house and garden.
Lots to think about.

minus whatever she pays for the annexe

This is the problem area. If your Aunt gifts you that money and dies or needs residential care within 7 years, then that money is still considered her money I believe. If her cash reserves ran out then her money invested in your house would be considered an asset to be released.

*Not a legal bod, but this is my understanding.

dot that does make sense. Thank you. Lots to think about.