If you consider building an annexe or buying a property with an annexe, you are in growing company. Annexes have been booming in popularity over the last couple of years, and it’s not just pandemic-related. Read on to discover why properties with an annexe are so popular.
There are many benefits to properties with an annexe:
Whether you have elderly relatives to care for who need a balance of independence and support, or young adult children saving for their own property or relying on grandparents for childcare, multi-generational living is becoming increasingly popular. Cross-generational living arrangements work out better for everyone when each person has a dedicated living space.
In addition, on the back of the pandemic, we have found that families increasingly want to stay together. Many feel it is safer and essential for loved ones to be cared for out of traditional settings. Loneliness hit many during the pandemic, so multi-generational living has benefited everyone.
The home office
More space is needed, with multiple family members now working at least some time from home. Annexes are a great way to extend and get the versatile room you need.
Beyond adding value to your home, an annexe has numerous other financial benefits.
First, in the case of the traditional ‘Granny annexe’, there are enormous savings on care costs. The cost of residential care is staggeringly high, typically well more than £1,000 per week.
Second, a lesser-known financial benefit of buying a property with an annexe is the potential savings on stamp duty. On the one hand, they are viewed as one rather than being viewed as multiple properties. So there is no stamp duty surcharge. In addition, properties with an annexe are often eligible for Multiple Dwellings Relief (MDR) on Stamp Duty Land Tax (SDLT). You can claim this relief where one or more dwellings in the transaction share freehold or leasehold interests.
Additionally, and significantly in light of the cost of living crisis, it can be more cost-effective to have two units sharing day-to-day expenses and some facilities.
Add value to your home
Various factors affect the figures, but an annexe could well add value to your property. Additionally, the versatility of an annexe makes it attractive to potential buyers.
Choosing a property with an annexe
Consider your requirements when choosing a property with an annexe or building a new annexe. For example, do you need additional accessibility requirements for elder care? However, most importantly, consider versatility. The use of an annexe can change over time and should work to suit your lifestyle at different stages.
However, know that you are making an excellent investment if you buy a property with an annexe.
For help finding your next property with an annexe in East Anglia, get in touch.