Case Study Flashcards
Under what legislation determines a ground for a challenge? Name 3 other grounds
The non domestic rating (alterations and appeals) regulations (2018)
deletion, merger, mcc
Definition of Rateable Value?
LGFA 1988 sh6
Difference between AVD, effective date and material day.
AVD - the date the economical factors are considered, effectively the valuation date.
Effective date - is the date of the change on the rating list
Material day - the day the physical / factual details are considered
For a Private sector rating surveyor what should be included within the TOE and what is the fee basis?
Rating Consultancy code of practice (2017)
1. identify the client
2. identify property and extent of inspections
3. liability of appeal fees
Fee basis - no set basis but must be agreed in TOE
Client? SOS and minister
Department for Levelling Up, Housing and Communities
SOS - Michael Gove
Tell me about the local market at the time
Prime rents were at around £1400/m2 ITZA. Behind only London in the south.
250,000 footfall a week
13mil a year
30min catchment of 450,000
84min tourist dwell time
70 units
How did you know it was a 1960’s construction? Common defects?
Visually the brick clad told me it was post war, i later checked the exact date using previous plans and VO records. Common defects of this type of construction include honeycombing and brick deterioration.
How was it constructed?
Appeared to be slab and beam whereby structural beams rest on the foundations with concrete slabs acting as the ceiling and floor of the second storey.
Original lease and rent
2009 at £24,000pa.
Can a former IP submit a challenge
If an alteration was made effective during the time they were an IP.
What is a conflict, different types?
Where acting in ones interest could impact your ability to act in another parties interest.
Party conflict
Personal conflict
Confidential information conflict
Management
gain confirmed consent
record keeping
inform senior colleague and parties at earliest chance
Guidance - RICS conflicts of interest 1st edition 2018
Valid challenge?
if they qualified as IP
correct grounds
evidence supporting grounds
Desk based Checks conducted?
Search for evidence
Hardship / small proposer - would impact internal timelines
Purpose of Zoning?
The theory is that front of the shop is the most valuable therefore the floor area is analysed as such halving in value at 6.1m increments.
Zones can be different depending on locality for example some London authorities adopt 4m zones.
Timeline for Appeal?
Within 4 months of Challenge decision or 18 months after challenge submission if VOA not responded.
Cost of Appeal
£150 small proposer £300 all others - refunded if successful
Mode and category of Subject
Shop premises - A1 Shop or E
Tell me about Suri v Masters (1982)
Lands tribunal considered the most important factor in valuing Kiosks was its location rather than size, regarding frontage as more important than depth and size, commenting on the very narrow frontage of the appeal hereditament (0.7m).
Tell me about the Kiosk market in the locality
I identified two further Kiosk assessments in the locality, both of which were much smaller units with one located at a train station entrance therefore I concluded these did not offer comparability to the subject.
What is meant by the term standard shop rate
This refers to the adopted value per sqm in the locality for shop units, this is the wording used within the Suri v Masters case.
Are you aware of the Arma Hotels case?
Yes, this involved a hotel lacking rental and tone evidence whereby the Receipts and expenditure method was adopted.
Did you consider any case law when looking at mode and category?
Fir Mill Ltd v Royston (1960) - use limb of rebus sic stantibus - Held that a cotton mill could be valued as a factory and not restricted to a cotton mill - a factory is a factory but not any particular kind of factory.
Scottish and Newcastle v Williams 2000:
Case determined mode or category of occupation has two distinct limbs:
- Use – must be valued in same use
- Physical – only minor alterations
Case law regarding settlement evidence
Obrien v Harwood - unchallenged does not establish tone, good number of settlements does
Is Rating meant to be uniform? Case law?
No we are looking to arrive at a fair and reasonable RV in line with the statutory definition.
Ladies’ Hosiery v West Middlesex Assoc- Correctness must not be sacrificed to uniformity
How did you identify the non structural wall?
Knock test to see if hollow
checked upper floor to see if it was present in the same position which would suggest it is structural
could check previous plans
If structural would need to record the area differently for rating assessment and remove the thickness.