Converting existing outbuildings into residential space used to be the preserve of those whose elderly parents had grown too frail or dependent to live alone – hence the term ‘Granny annex’.
Now, however, annexes are coming in useful for a wide variety of purposes. So popular are they, councils received approximately 9,000 planning applications for them in 2019/20*. Viewed in the context of the past 18 months, it becomes obvious why extra space has become quite attractive.
Confined to our homes and trying to work at the dining room table or on the sofa, the thought of a home office or gym was one many found appealing. And there’s another reason to add an annex to your own home – research found that it can add an average of £91,000 to the value of a property!
Where to start?
Firstly, what is your annex for? A home office is relatively simple, requiring a single room and perhaps toilet facilities. On the other hand, hosting Airbnb guests will probably require several rooms, including a full bathroom, kitchen facilities, living space and a bedroom.
It’s all in the planning
Next, it’s time to think about planning permission. If you’re converting an existing outbuilding, like a garage or shed, you might not even need it. You’ll likely need to submit a planning application for larger projects, though.
Gaining planning consent before you sell your property, even if you don’t build, can still raise your property’s value, as it is an indication to prospective buyers that they will be able to build their own annex should they wish.
Get in touch
If you’re looking to borrow money on your mortgage for an outbuilding, or you want to discuss anything mortgage related, please talk to our IFA for mortgage advice. We see clients across Sussex and Kent, including Eastbourne, Uckfield, Lewes, Brighton, Tunbridge Wells, Ashford, Hastings, Hailsham, Bexhill, Newhaven, Seaford, Crowborough and further afield. Please contact us to arrange a free initial mortgage review.
Clifford Osborne are Independent Financial Advisors (IFA) based in Eastbourne, East Sussex, offering mortgage advice, early retirement advice, pension advice and more. We’d be delighted to help you.
Please read our VoucherFor reviews here.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
The information contained within the blog is for information purposes only and does not constitute financial advice.
The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.
*Churchill Home Insurance, 2021
