Can I legally let out the family flat of the house I will buy?

Sarah1122

hi,

I'm looking to buy a new home house. I have seen a new house coming to the market, which has an attached 2 storey family flat to the main house. The family flat is a self-contained unit with its own front door, and a door inside connected to the main house.

I have found the planning permission online, it says "Two storey family flat at side of existing dwelling and extension of existing kitchen and demolition of existing single storey extension at side of dwelling." And in the planning permission it says "...make enclosed application for planning permission to the above address due the situation of overcrowding in the existing dwelling and to accommodate my daugter and her 2 children.."

As I have seen a few threads saying that legally you can't rent out a granny flat. In this case, it states as family flat, I'm wondering if i buy this house, can i rent out this family flat legally? and qualified for rent-a-room relief ?

many thanks in advance

DubCount

There is nothing illegal about renting out a Granny Flat. Most of the discussion relates to whether it is rented out as a tenancy or a license, or whether you can rent out a Seomra type construction in the back garden (which you cant).

Although you say it is "stand alone", the connecting door to the rest of the house IMHO means you can rent it as a license arrangement. This is important in terms of your rights and obligations, and if your rental income is going to be less than 14,000 p.a. it can be important for tax reasons as well.

ElBastardo1

DubCount wrote: »

There is nothing illegal about renting out a Granny Flat. Most of the discussion relates to whether it is rented out as a tenancy or a license, or whether you can rent out a Seomra type construction in the back garden (which you cant).

Although you say it is "stand alone", the connecting door to the rest of the house IMHO means you can rent it as a license arrangement. This is important in terms of your rights and obligations, and if your rental income is going to be less than 14,000 p.a. it can be important for tax reasons as well.

First thing that should be considered is what was approved for planning. Normally when applying for PP on a 'Granny Flat', the council insist before planning is granted that you must sign an affidavit you will never rent out the premises and it must be only used by a family member.

Gumbo

ElBastardo1 wrote: »

First thing that should be considered is what was approved for planning. Normally when applying for PP on a 'Granny Flat', the council insist before planning is granted that you must sign an affidavit you will never rent out the premises and it must be only used by a family member.

You don’t actually have to sign an affidavit but the Final Grant of Planning Permission will contain a condition that the “Granny Flat” is not separated by sale or lease. This prohibits selling it as a stand alone unit and entering a tenancy agreement.

But, if you let it out, technically there is no lease as it’s a licensee arrangement so may technically not be in breach of the granted permission.

ElBastardo1

Gumbo wrote: »

You don’t actually have to sign an affidavit but the Final Grant of Planning Permission will contain a condition that the “Granny Flat” is not separated by sale or lease. This prohibits selling it as a stand alone unit and entering a tenancy agreement.

But, if you let it out, technically there is no lease as it’s a licensee arrangement so may technically not be in breach of the granted permission.

I've seen stipulations that a signed affidavit must be signed and lodged with DLRCC prior to planning being granted. Might not be in every council, but it's something I came across.

listermint

Would this not fit rent a room definition.

ElBastardo1

listermint wrote: »

Would this not fit rent a room definition.

No, not if it has it's own front door. Even if you were legally allowed to rent this out, it would be taxed as an independent unit. You wouldn't get any relief on the earnings.

ElBastardo1

ElBastardo1 wrote: »

No, not if it has it's own front door. Even if you were legally allowed to rent this out, it would be taxed as an independent unit. You wouldn't get any relief on the earnings.

It can have its own front door once it also has an internal connection to the main house also. Once there is an internal door it’s rent a room and tax free up to 14k. It is also a licensee situation - some will attempt to argue otherwise but I don’t accept it’s anything but a licensee living under the same roof as you.

Planning permission cannot prevent your renting out rooms which is all this. There are granny flats being rented under the rent a room scheme all over the county for many many years have you ever heard of a single one come to the attention of planners etc??

ElBastardo1

Okay, If it's attached to your house but self contained you are entitled to have it under the rent a room scheme. If it's not connected to the house you aren't entitled to qualify. Although according to Citizens Information: While renting out a room that is part of your home is not covered by landlord and tenant law, renting out a self-contained unit is covered.

Gumbo

ElBastardo1 wrote: »

I've seen stipulations that a signed affidavit must be signed and lodged with DLRCC prior to planning being granted. Might not be in every council, but it's something I came across.

Any links to applications with this stipulation?
It it was requested then it will be under the guise of further/additional information.

I’ve been granted quite a few granny flats for clients and everyone of them only requires a letter at the time of lodgement stating the reasons it’s required. No league affidavit required.

But I accept that the planners may act different, hence why I’m looking for an example to see if it’s a recent change or something that’s been in there all along but not always requested.

ElBastardo1 wrote: »

No, not if it has it's own front door. Even if you were legally allowed to rent this out, it would be taxed as an independent unit. You wouldn't get any relief on the earnings.

Most granny flats will have their own front door, either to the side of the existing house, within a shared entrance porch or towards the rear.

They are still officially extensions to the main dwelling so rent a room applies and there’s no lease drawn up.

Gumbo

ElBastardo1 wrote: »

Okay, If it's attached to your house but self contained you are entitled to have it under the rent a room scheme. If it's not connected to the house you aren't entitled to qualify. Although according to Citizens Information: While renting out a room that is part of your home is not covered by landlord and tenant law, renting out a self-contained unit is covered.

There is no other way. If it’s not attached then it’s not legal. It has to be attached to be an official granny flat.

Ms. Captain M

You'll need to find out if it has a separate electricity supply, it's own LPT number. This will have to be put on your stamp duty return when/if you buy. You won't be able to claim under rent a room if Revenue class it as a separate entity

Gumbo

Ms. Captain M wrote: »

You'll need to find out if it has a separate electricity supply, it's own LPT number. This will have to be put on your stamp duty return when/if you buy. You won't be able to claim under rent a room if Revenue class it as a separate entity

It will not have any of the above due to the following

which has an attached 2 storey family flat to the main house. The family flat is a self-contained unit with its own front door, and a door inside connected to the main house.

It’s an attached extension to the main dwelling.

adam88

ElBastardo1 wrote: »

No, not if it has it's own front door. Even if you were legally allowed to rent this out, it would be taxed as an independent unit. You wouldn't get any relief on the earnings.

Not correct. The revenues own advice on rent a room contradicts what you just said

ElBastardo1

ElBastardo1 wrote: »

Okay, If it's attached to your house but self contained you are entitled to have it under the rent a room scheme. If it's not connected to the house you aren't entitled to qualify. Although according to Citizens Information: While renting out a room that is part of your home is not covered by landlord and tenant law, renting out a self-contained unit is covered.

I already accepted that.

adam88 wrote: »

Not correct. The revenues own advice on rent a room contradicts what you just said

ElBastardo1

Gumbo wrote: »

Any links to applications with this stipulation?
It it was requested then it will be under the guise of further/additional information.

I’ve been granted quite a few granny flats for clients and everyone of them only requires a letter at the time of lodgement stating the reasons it’s required. No league affidavit required.

But I accept that the planners may act different, hence why I’m looking for an example to see if it’s a recent change or something that’s been in there all along but not always requested.



Most granny flats will have their own front door, either to the side of the existing house, within a shared entrance porch or towards the rear.

They are still officially extensions to the main dwelling so rent a room applies and there’s no lease drawn up.

I'll have a look tomorrow, DLRCC planning section acting up.

Gumbo

ElBastardo1 wrote: »

I'll have a look tomorrow, DLRCC planning section acting up.

It’s a new system and It doesn’t work great on mobile devices.
I have to use my PC when using it.

Thanks.

ElBastardo1

Gumbo wrote: »

It’s a new system and It doesn’t work great on mobile devices.
I have to use my PC when using it.

Thanks.

Had a look through the applications and I couldn't find any requesting an Affidavit, just the letter as you had said. I could have sworn I had seen it somewhere on one of the Councils. I stand corrected though!