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I doubt they can enforce the microwave. Wet areas such as sinks and cabinets are legal anywhere from what I understand. Just not the actual ovens etc.

Better question is, will you still be covered by insurance if both houses burn down.

Rent it as a sleep out. If you want to get it approved, you really need to understand what will get through council and what won't. I've seen a lot of 'granny flats' that were unaproved that looked pretty legit, that didn't have a chance in hell of getting through council. Agents try to...