What is an annexe and does it add value to a property?
Everyone has heard of the ‘granny flat’ – the annexe where an elderly member of a family can live self-sufficiently, but is actually part of the same household, close to sources of care and support. Today annexes are more popular than ever, and not just among the older generation. The rising cost of living means that more younger people are leaving the family home later, and living in an annexe gives a degree of independence while allowing them to save for a deposit on a property of their own.
But how much value does a self-contained annexe actually add to a property, and what kinds of annexe are there? Find out more with our comprehensive guide to annexes.
What is an annexe?
An annexe is part of a property that has been built or converted into a self-contained unit of accommodation. The annexe can be joined to the main property or be an outbuilding or independent structure, but the annexe is always part of the same address. Annexes are self-contained living spaces, often used by elderly members of a family, grown-up children or as holiday lets.
What are the different types of annexes and their features?
Attached Annexes
An attached annexe or integrated annexe is part of the main footprint of a building, but has been converted in a way that makes it a self-contained unit of private accommodation. It will have at least one bedroom, kitchen and bathroom and a living space.
Detached Annexes
A detached annexe might be an outbuilding, barn or storeroom that has been converted into an additional living space. It is not joined physically to the main property but is not a separate dwelling and has the same address as the main house.
Self Contained Annexes
A self-contained annexe is often known as a ‘granny annexe’. It is usually a stand-alone structure in the grounds or garden of a property, which provides a completely independent living space. Self-contained annexes are also popular as holiday lets, providing a second income for the people who own the main property.
Garage or Loft Conversions
Two of the most common ways a property owner creates an annexe is by converting a garage or loft. Garages are ideal as ground-level living spaces for elderly family members, while lofts are popular with the younger generation, who may not be able to afford moving out of the family home just yet.
How does an annexe add value to your home and what are the benefits?
Annexes almost certainly add to a property’s value, because they increase the liveable space and the financial potential of a building.
With the rising cost of living, multi-generational living is becoming more popular. Houses with annexes give the option of family members living together in the same property, while giving a sense of independence and privacy to the people living in the annex. If an annexe is detached, it can be rented out separately from the main house to provide an additional source of income.
What types of annexes add the most value to a home?
All annexes should provide everything a person needs for independent living, but their appeal can be enhanced. Features such as off street parking, new kitchens and bathrooms and lots of natural light would all be seen favourably by potential buyers.
How much does an annexe cost?
While all prices are approximate, a new detached annexe building will be the most expensive form of annex. Prices will be higher for a better quality of build, but an average of £90,000-100,000 would not be uncommon. Converting an existing room or outbuilding will be a cheaper option.
Do you have to pay council tax on an annexe?
Annexes do have council tax implications. If the annexe is attached to the main property then it will not be liable for a separate council tax bill. Detached annexes are considered differently, however. If no one is living in a detached annexe there will be no further charge; if the person living there is over the age of 65 or permanently disabled or mentally impaired, they are considered ‘dependents’ and again it is included in the main property bill.
However, if the person living in the detached annexe is a non-dependent relative, council tax will be charged at half the normal rate for a property of equivalent size.
Is an annexe considered a separate dwelling?
Annexes are not usually considered a separate dwelling, because they are on the same plot of land as the main property. Unless they are rented out as a holiday let, they are also occupied by members of the same family as the main property, so do not constitute a separate household.
Can you live in an annexe?
Yes, annexes are designed to be spaces where people can live self-sufficiently.
Do you need planning permission for an annexe?
Planning permission is required for annexes if they are going to be lived in by a member of your family or used as a rental property. If the structure is only going to be used recreationally, such as a summer house, shed, home office or gym, then planning permission is not needed as it would be classed as an ‘incidental building’.
Let us value your property
If you have recently completed an annexe, and want to know how much value it has added, we can arrange a free valuation of your property. Simply get in touch with your local haart branch.