Granny Annexe Costs, Finance & Tax: FAQs
Thinking about the cost of a granny annexe? We’ve grouped the questions we’re asked most often about prices, payments, tax and funding below. For the full picture of building an annexe, see our complete guide to building an annexe in the garden.
Prices and what’s included
What an iHus annexe costs, and exactly what that price covers.
How much does a granny annexe cost?
Our annexes are a single, fixed, fully turnkey price that varies with size and specification. For current prices and a full breakdown of what’s included, see how much a self-contained granny annexe costs.
What do your prices include?
Our Classic range prices include:
- General groundworks and foundations
- 10 metres of service run connecting the annexe to the main house for water, electric and sewage
- Exterior weatherboard cladding
- A flat EPDM rubber roof (a pitched roof is available for an additional cost)
- PVC-U windows and doors
- A kitchen with single oven, ceramic hob, extractor, units, worktop and a single bowl sink
- A shower room with shower tray and dual shower head, WC, floating vanity unit sink and chrome towel rail (a wet room is available for an additional cost)
- Laminate flooring in the living and bedroom areas, vinyl in the shower room
- Electric radiators and a hot water heating system
- Full turnkey service
The above is our Classic range; please ask us directly about our set 3632 range.
Are there any hidden costs?
Not with iHus — you get one fixed, all-inclusive price covering design, planning, groundworks, build and connections. Hidden costs usually come from cheaper providers who leave essentials like planning, groundworks or utility connections out of the headline quote. We cover what to watch for in the quiet cost of choosing a cheap garden annexe.
Paying for your annexe
How payments are staged, and the funding options available.
What do I pay, and when?
The virtual consultation and site visit are free. The planning fee of £2,200 and a £2,000 commitment-to-build deposit are the first outlay. A further 10% is due when planning is approved, then 15% to secure a build start date (these two can be close together), 60% when the structure is delivered, and the final 15% two days before the key handover.
Do you offer finance?
We don’t offer finance directly, but we can introduce you to a financial partner — the advice they give would be their own.
Can I get a mortgage for a granny annexe?
No, as an annexe is ancillary to your main home rather than a stand-alone dwelling.
Tax and running costs
VAT, council tax and what an annexe costs to live in day to day.
Do your prices include VAT?
Our annexes are VAT exempt, as they comply with the Caravan Act. Anything larger than 20 metres by 6.8 metres would be VAT payable, as it wouldn’t comply.
Do you pay council tax on a granny annexe?
Most councils offer a 50% discount, and where a dependent relative lives there — someone over 65, substantially or permanently disabled, or severely mentally impaired — it may be fully exempt. Each council differs; see our guide to granny annexe council tax rules for the detail.
How much does a granny annexe cost to run?
Running costs are modest. Because an annexe is smaller and more energy-efficient than a main home, day-to-day utility bills are considerably lower, and maintenance is minimal. Solar panel packages can reduce running costs further still.
Value and guarantees
What an annexe is worth over the long term, and how it’s protected.
Do granny annexes add value to your property?
Yes. A well-built, self-contained annexe is a genuine asset, and these spaces are rare and in demand when it comes to selling. We look at this in more detail in is a granny annexe worth it?
Are granny annexes cheaper than a care home?
Over time, often yes. Residential care averages around £54,000 a year with no asset at the end of it, whereas an annexe is a one-off investment that keeps a relative close and adds value to your home. We compare the two in is a granny annexe worth it?
What guarantees and warranties are in place?
Each annexe comes with a 10-year build guarantee against defects in workmanship. Individual items carry their own manufacturer warranty — kitchen appliances, radiators, flooring, cladding and so on. Six months after you move in, we’ll arrange a snagging visit.
How do I insure my annexe?
Most customers add the annexe to their existing home insurance policy. It can be insured separately, and we have a preferred insurance partner we can introduce you to if your current provider can’t help.
Still have a question about costs? Speak to our team — the consultation is free.