Neighbours house coming up for sale. To buy or not to buy

clones1980

Hi everyone. I live in a mid-terrace house and as the title explains my neighbours house is coming up for sale. The house is an end terrace house. I know this sounds a bit crazy possibly but what are the chances if I buy this house of turning it into a "granny flat" type property. I would block up the front door and put in a side door and also connect the house via an entry way to mine. Would the council give permission to turn a neighbours house into such a dwelling.

Also if the council would give permission and if it was say connected to my house in some way could the rental income from it be treated as having live in tenants for purposes of tax or would I still be required to pay the 20-40% tax?

Black_Knight

clonesbabe wrote: »

Hi everyone. I live in a mid-terrace house and as the title explains my neighbours house is coming up for sale. The house is an end terrace house. I know this sounds a bit crazy possibly but what are the chances if I buy this house of turning it into a "granny flat" type property. I would block up the front door and put in a side door and also connect the house via an entry way to mine. Would the council give permission to turn a neighbours house into such a dwelling.

Also if the council would give permission and if it was say connected to my house in some way could the rental income from it be treated as having live in tenants for purposes of tax or would I still be required to pay the 20-40% tax?

Do the utilities/electrics have to be merged into the 1 property? I'm not sure how one goes about merging 2 properties into 1, but i'd assume that's a condition.

mcbert

Ive nothing to back up my claim but I dont think youll ever be allowed do this.

Black_Knight

https://www.askaboutmoney.com/threads/converting-2-semi-detached-houses-into-1.135398/

unhappys10

Have nothing to add other than I know of a place in Mullingar like this.
Used to work as a postman and always thought it was funny.
[IMG][/img]

clones1980

Black_Knight wrote: »

https://www.askaboutmoney.com/threads/converting-2-semi-detached-houses-into-1.135398/

Thanks for that Black_Knight.. Its more hassle than its worth by the sounds of it. I am still interested in buying it and possibly do it up and move into it for the end house and bigger garden and then rent my own.

lawred2

mcbert wrote: »

Ive nothing to back up my claim but I dont think youll ever be allowed do this.

I've seen it done.. two semis converted into one large house. Doubt it's that extraordinary.

Alan30

http://www.mulcon.ie/Room-to-Improve---Dundalk-knocking-two-houses-into-one.html

salmocab

I did some work in an apartment a few years back that had basically done this, the two apartments were top floor and were in different stairwells although it was obviously the same building. They were at 90 degrees to each other do former s lovely L shape and they added some velux that the other apartments didn’t have. I know it’s not quite the same as two houses legally but I’d say it’s possible, if it’s worth the hassle is another thing I’d think. Presumably one bigger house would cost you less to buy than your own house plus another house with all the building work and fees that are likely to be required. Even floor levels being a bit off could be a right pain when doing the openings.

BrokenArrows

clonesbabe wrote: »

Hi everyone. I live in a mid-terrace house and as the title explains my neighbours house is coming up for sale. The house is an end terrace house. I know this sounds a bit crazy possibly but what are the chances if I buy this house of turning it into a "granny flat" type property. I would block up the front door and put in a side door and also connect the house via an entry way to mine. Would the council give permission to turn a neighbours house into such a dwelling.

Also if the council would give permission and if it was say connected to my house in some way could the rental income from it be treated as having live in tenants for purposes of tax or would I still be required to pay the 20-40% tax?

You could do this but as soon as you merge the two and it becomes a single house you will lose money on the property.

If you do this make sure it's easy to separate them again if you need to sell one.

I remember seeing a house for sale something like this a good while back when I was thinking of buying alone and was looking for something with a granny flat or similar that could be rented out to contribute to the mortgage but not having to actually share the house. It would be an absolute dream for rent a room relief. It was something like no.44a and no.44b with separate entrances both hand bedrooms, living rooms and kitchen but there was a door between them meaning tax free under the rent a room scheme. The rent of the second “house” would have fully covered the mortgage the mortgage too so you would be paying nothing out of your pocket for owning a house.

BrokenArrows

Jimena Sweet Explorer wrote: »

I remember seeing a house for sale something like this a good while back when I was thinking of buying alone and was looking for something with a granny flat or similar that could be rented out to contribute to the mortgage but not having to actually share the house. It would be an absolute dream for rent a room relief. It was something like no.44a and no.44b with separate entrances both hand bedrooms, living rooms and kitchen but there was a door between them meaning tax free under the rent a room scheme. The rent of the second “house” would have fully covered the mortgage the mortgage too so you would be paying nothing out of your pocket for owning a house.

I didn't think granny flats were given rent a room relief. The room must be part of the main household.

BrokenArrows

BrokenArrows wrote: »

I didn't think granny flats were given rent a room relief. The room must be part of the main household.

Granny flats are part of the main house they wouldn’t get planning otherwise. They can have their own entrance etc once there is a door connecting them to the main house (which can be permanently locked) they qualify for rent a room relief.

Juwwi

Iv'e nothing much to add except when it goes up for sale if the auctioneer brings
anyone around to view it make sure your sitting in your under pants drinking
beer in your own front garden to avoid getting into any bidding wars .

mikemac2

Good advice Add some rusted old cars around your house for the next few weeks OP and good luck with the purchase

Colonel Claptrap

I know somebody who owns a house, and next door was rented out by a celtic tiger developer.
In 2009 the developer was on it's knees and struggling to find a tenant for the property.

The guy i know made a deal with the developer that he would rent it on a long term lease, the developer would knock a hole through the wall and the guy would live in both houses as a single unit. Mortgage on one side. Lease on the other.

I didn't believe him until I saw it with my own own eyes. Mental.

TheW1zard

I know a house who did it, kids lived in the other half.


If i ever was im a position to id do it

tabby aspreme

I have worked in a few houses that were connected inside, but had two front doors. Another that sticks in my mind is where, two houses are connected back to back, they each had tiny back yards, about 8' deep at most which were built over, with a door onto each street.

draoicht

The artist Robert Ballagh combined three houses into one in Broadstone in Dublin, it was on Celebrity Home of the Year last year. http://archiseek.com/2003/boyd-cody-architects-ballagh-house-temple-cottages-dublin/
Also if I remember right Brenda Fricker combined two properties in Dublin 8 years ago.

punisher5112

Watch step brothers some great ideas in there....

If you can buy, set it up to rent a room and have the one entrance, have it well divided and you never have to see them or watch TV with them...

Edgware

salmocab wrote: »

I did some work in an apartment a few years back that had basically done this, the two apartments were top floor and were in different stairwells although it was obviously the same building. They were at 90 degrees to each other do former s lovely L shape and they added some velux that the other apartments didn’t have. I know it’s not quite the same as two houses legally but I’d say it’s possible, if it’s worth the hassle is another thing I’d think. Presumably one bigger house would cost you less to buy than your own house plus another house with all the building work and fees that are likely to be required. Even floor levels being a bit off could be a right pain when doing the openings.

Did the owner have to pay two management fees?

clones1980

Thank you everyone for the input. I think when it comes up I will certainly try and buy it, There is a good rental yield in my estate so if nothing else at least I can choose who my neighbours will be.

Gumbo

Deffo possible.
Planning and clever design would create a nice large house alright.

salmocab

Edgware wrote: »

Did the owner have to pay two management fees?

Honestly don’t know, never thought of it. I suspect not because if I remember correctly he ran the management committee.

Gumbo

Edgware wrote: »

Did the owner have to pay two management fees?

I’d suspect so as it’s technically 2 units.
The other thing is planning and a fire safety cert would have been required.

Or, if planning was granted, then the owner would of having the permission from the MC to carry out the works, and they have have come to an arrangement for a revised fee for the new unit.

Del2005

clonesbabe wrote: »

Thank you everyone for the input. I think when it comes up I will certainly try and buy it, There is a good rental yield in my estate so if nothing else at least I can choose who my neighbours will be.

See if you can arrange a meeting with the local planning department to see if it's possible to do what you want and then talk to an accountant to see if it's legal. Buying to rent as a single unit landlord is a lot of hassle for little return, half your rent could go in tax not to mention what new anti landlord laws could be on their way.

harr

Had neighbors down home who did this they got planning but had to leave exterior as was , so two front doors and wall separating two house had to be kept ( front ) but they did good job inside with the help of an architect.
I think the renovation costs were fairly substantial.

Del2005

Del2005 wrote: »

See if you can arrange a meeting with the local planning department to see if it's possible to do what you want and then talk to an accountant to see if it's legal. Buying to rent as a single unit landlord is a lot of hassle for little return, half your rent could go in tax not to mention what new anti landlord laws could be on their way.

If there is an internal door connecting the two houses then they are rent a room so once it’s 14k or less there is no tax. Its the ideal scenario, rent a room relief without having to ever encounter the people paying you.