The Financial Case for an Annexe
An annexe costs a fraction of what care homes charge over time. It also adds value to your property and qualifies for zero VAT under the Caravan Act. Here are the numbers.
The Real Cost of Care
Here's a side-by-side comparison of annexe costs versus residential care over 10 years.
Care Home Costs
What you get:
Grannexe Annexe
What you get:
Total Savings Over 10 Years
£515,000+
That's what a family can save over 10 years by choosing an annexe instead of residential care.
Zero VAT Under the Caravan Act
Our annexes are built to BS 3632 residential standards and qualify under the Caravan Act 1968. This means you pay no VAT on your annexe, saving you 20% immediately.
Example savings on a £110,000 annexe:
- Legally VAT-exempt as a "caravan" for tax purposes
- Built to permanent residential standards
- No council tax in most cases when "ancillary" to main home
Selling Your Parent's Home to Fund the Build
If your parent sells their home to move into the annexe, the sale proceeds usually cover the build cost with money left over.
Fund the Annexe Build
Sale proceeds typically cover the entire annexe cost with substantial funds left over.
Money Left Over
Remaining funds can cover future care needs, day-to-day living, or whatever your parent wants.
Preserves Family Wealth
Care home fees drain savings at £65,000+ per year. An annexe is a one-off cost that retains value as part of the property.
Add 15-30% to Your Property Value
"Annexe" is the most searched property keyword on Rightmove. A well-built annexe adds real value when you come to sell.
15-30%
Added Property Value
Typical increase to your home's value
#1
Search Term
"Annexe" is the top property keyword on Rightmove
89%
Demand Increase
Rise in annexe searches since 2020
Future Flexibility
When circumstances change, the annexe can be used for other things:
Lower Running Costs
Our WarmWall insulation system keeps heating bills low, and shared utilities reduce costs further.
Heating Savings
250mm WarmWall insulation means minimal heating costs, even in winter
Shared Utilities
Connect to existing water, electric, and broadband, splitting costs
Council Tax
Often exempt when used as ancillary accommodation for family
Low Maintenance
Quality build with 10-year guarantee means fewer repair costs
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