How Much Value Does an Annexe Add to a Property?

If you are thinking about building an annexe in your garden, you might be wondering if it is worth the investment. In this article, we will discuss annexes in more detail and answer the question of how much value does an annexe add to a property.

What is an annexe?

An annexe is typically a standalone building which is built in the garden of an existing property and shares the same address. Unlike a basic outbuilding, an annexe will be equipped with everything necessary for independent living, such as a kitchenette, bedroom and bathroom.

Annexes can be used to house guests, provide accommodation for elderly relatives or younger family members wanting more privacy. They can also be rented out on a short or long-term basis.

Can I build an annexe in my garden?

Whether you can build an annexe in your garden depends on several factors. You need to consider the size and shape of your garden and whether the ground is suitable. An area prone to flooding or other environmental concerns is probably not ideal.

You also need to make sure your annexe will have access to utilities. Planning permission is often dependent on what the annexe will be used for, so it’s best to seek advice from your local planning authority (LPA).

If you are planning to lease out your annexe as a rental dwelling, we would advise also speaking to your mortgage lender as this might be dependent on the type of mortgage you have.

How much does an annexe cost to build?

Below is a breakdown of what a typical annexe is likely to cost:

Basic build: £800 – £1500 per m2
Standard, high-quality build: £875 – £1650 per m2
Premium quality build: £950 – £1800 per m2

Remember to factor in costs for internal and external finishes e.g. plastering, electrics and painting & decorating.