Moving into a granny annexe is a big decision. But I think most people who live in a granny annexe would tell you that it is the best decision they ever made! That being said, there are many factors to think about and consider before moving into a granny annexe. And one of them is the monthly costs of living in a granny annexe.
The Cost-Effective Solution
Of course, granny annexes are so popular because they are a cost-effective solution. If you are looking for accommodation for an elderly relative, a granny annexe is far cheaper than a care home. If you are looking to downsize and stay close to the family, a granny annexe is far more cost-effective than a retirement village or new house. Granny annexes even provide a cost-effective solution for first-time buyers!
The beauty of living in a granny annexe is that you won’t be wasting your hard-earned pension or savings on the extortionate care home or retirement village fees.
The usual monthly costs of living in a granny annexe tend to be bills such as electricity, general upkeep and finance costs (if you opted for granny annexe finance).
Granny Annexe Finance
With prices as low as £58,500 for a Cosy Pod Annexe, many people buy their annexe outright. However, understandably, not everybody has the immediate funds to purchase a granny annexe. Therefore, there are excellent granny annexe financing options available.
If you choose to pay for your granny annexe through financing, you will have affordable monthly payments. The cost of these monthly payments will solely depend on the total amount you’d like to borrow.
Granny annexe finance offers an affordable and stress-free way to have your dream annexe, without having to save-up or go through the hassle of selling an existing property.
If you do not opt for finance and instead purchase your annexe outright, you will have fewer monthly costs of living in a granny annexe.
Granny Annexe Council Taxes
There was once a time when granny annexe council tax was quite the deterrent for people thinking about buying a granny annexe. However, because granny annexes save local authorities money and free up much-needed housing for the elderly, the Government made changes to their granny annexe council tax policies.
Now, if the annexe is used by a family member of the person who owns the main house, or by that person themselves, then the Council Tax is payable at the reduced rate of 50% of your banding. Find out if you qualify for this discount here.
Alternatively, if you are building a granny annexe for an elderly, dependent relative, there is a good chance that you will be exempt from paying granny annexe council tax.
We believe its always best to check with your local authority to find out if you need to pay council tax, and if so, how much.
Household costs are something that should also be discussed before purchasing a granny annexe. Obviously, due to their small size in comparison to a house, granny annexes are far more cost-effective when it comes to household costs.
Still, finances such as the electricity bill should be discussed with the rest of the family beforehand. This way you can plan out who is going to be responsible for the monthly costs. It is possible to have separate electricity bills for the annexe – this works incredibly well for people who are downsizing and want to stay close to the family yet live independently.
If you are purchasing a granny annexe for an elderly relative who needs at-home care, you should factor in the monthly cost of carers and any other services you may be using.
General upkeep consists of optional additional costs such as having a gardener or window cleaner. Although, many people choose to look after their homes themselves rather than paying for someone else to do it.
Although it may not be a monthly cost, general upkeep is still something that should be discussed before investing in a granny annexe.
At iHus, our granny annexes are unrivalled in quality and come with a ten-year insurance-backed guarantee, so you can be certain that you won’t be forking out for repairs.
Get In Touch
Here at iHus, we specialise in the design and build of luxury granny annexes. We also have an economical range of Cosy Pods available.
If you’re thinking about investing in your very own dream annexe with a beautiful bathroom, spacious living area, fully-fitted kitchen and bedroom, we can help! We even offer affordable financing options.
We take care of planning permission, provide complete project management on-site and ensure that every detail of your garden annexe is finished to an exceptional standard. All you have to do is move in.
If you have any questions about our range of granny annexes or you would like to book a free consultation, simply get in touch. A member of our team will be happy to answer any questions you may have.