CASE STUDY

Question 1

Why did you not apply an uplift to the basement for the frontage allowance?

Answer 1

It is only value significant to retail and the comparables with allowances only applied this to the zoned areas.

Question 2

When you incorporated the allowance into your analysis, how did this impact on ITZA?

Answer 2

It increased the ITZA

Question 3

You said the building is grade 2 listed, how did you know that?

Answer 3

Our internal property records and I had reference to the Historic England Website which details listed properties.

Question 4

You dated the property pre 1800s, how did you know this?

Answer 4

By assessing the construction of the property on my inspection. I also had regard to Historic England website as the site was grade 2 listed.

Question 5

Did the construction play a role in how you valued and adjustments you made?

Answer 5

The high street had some more modern buildings however my section of the street consisted of period properties. The tone was consistent for those. Little impact as retail values are more location sensitive and the subject rent reflected the tone.

Question 6

Why did you feel the need to add in a frontage allowance when your original analysis of the property already reflected that?

Answer 6

Best practice to have it separately as allowance reflected in the base price, then base price can be compared like for like with properties without frontage allowance, maintains tidiness of rating list.

Question 7

Case law:

Answer 7

Garton v Hunter (VO) 1969 Lord Denning CofA said ‘all other relevant considerations are admissible. We admit all relevant evidence. The goodness or badness of it goes to weight, and not to admissibility’. I considered all the evidence and weighed it accordingly.

Question 8

You say that Grade 2 listed and thought to be constructed 17th century, what thought is that, why not 16th, 18th? Looking at the property itself what era is that?

Answer 8

Tudor which is roughly 1400-1700. 1700 onwards is Georgian so more stone built buildings, taller, with larger windows (timber sash with 6 panes per window)

Question 9

What is vernacular architecture?

Answer 9

Where the building style and materials reflect the materials found in an area. E.g. Cotswold stone in Cotswolds, thatch in areas reeds were available. Clay brick in clay areas and nearer London/cities where industrialisation meant production of bricks were cheaper

Question 10

On inspection, you mention LED lighting, what does it stand for? What is the benefit of it

Answer 10

Light emitting diode. They are energy efficient, long life, durable.

Question 11

Are you sure the property is on a full repairing and insuring lease as I would be scared to death to that this property on a full repairing and insuring lease?

Answer 11

Our internal records stated that the lease was FRI and through discussions with the agent they also confirmed it was FRI. Could also say looked at lease.

Question 12

Is the usual on the stretch of that property on a FRI basis?

Answer 12

No, as there were comparables on other bases which I had to adjust to get to FRI.

Question 13

Is your reasonable then if not like to like?

Answer 13

These lease terms are not unreasonable and uncommon so adjustment for like to like basis not uncommon.

Question 14

Who put the CCTV in, landlord or tenant

Answer 14

Tenant

Question 15

Why pay rates on CCTV?

Answer 15

Included in the plant and machinery regulations. Rateable if not used mainly or exclusively as part of the manufacturing operations or trade processes

Question 16

Where would be find the CCTV is cameras a named item? Would you find the word camera?

Answer 16

Class 2 services, section f hazards – security and alarm systems. The word camera isn’t mentioned.

Question 17

Would it matter if there were 2 CCTV?

Answer 17

Yes, needs to be 4 or more to be rateable.

Question 18

Does the P&M say there must be 4? Or is that the VO being pragmatic.

Answer 18

Regulations does not refer to how many. VOA takes the pragmatic view that fewer than 4 do not constitute as a system.

Question 19

CCTV - The £128 where does that come from, why not £150?

Answer 19

I had reference to the VOA cost guide to determine an estimated replacement cost for the CCTV system, no adjustments needed to be made to the replacement cost. I applied a 4.4% decapitalisation rate which resulted in an annual equivalent value of £128.

Question 20

The subject rent, is a rent review, how was that rent review? RPI?

Answer 20

To open market value

Question 21

Why did you weight the rent review with significant weight as opposed to new lettings with some weight?

Answer 21

New lettings had to be adjusted to get to FRI and they were in different locations

Question 22

When was the CCTV fitted?

Answer 22

April 2010 when the tenant moved in

Question 23

Was the CCTV mentioned in the check submission?

Answer 23

No

Question 24

Is there anything in CCA regs that allow us to go back to an earlier date if we know that plant was there at an earlier date?

Answer 24

Regulation 14 – an alteration made to correct an inaccuracy allows us to go back to the day on which the alteration was made.

Question 25

We found CCTV, you assumed it was there at 1st April 2017. You added it in, did you serve a transitional certificate?

Answer 25

No as the value of the P&M did not impact on the RV rounding.

Question 26

When looking at rents as a whole, how did you impart that rental information?

Answer 26

I set out the information in a rental schedule and emailed it to the agent along with my explanation.

Question 27

Can you serve rental information by email?

Answer 27

Yes but it has to be issued under regulation 17 of the Valuation Tribunal for England Regulations 2009

Question 28

Is there any regulation you may have acted under?

Answer 28

The commissioners for revenue and customs act 2005

Question 29

What is the commissioner for revenue and customs act 2005?

Answer 29

Sets out the functions of the VOA - rating lists, council tax, valuation lists, valuation of property or matters in connection with the valuation of property. All information held by VOA is covered by the duty of confidentiality, specifies the circumstances when that information may be disclosed.

Question 30

Are all the other comparables zoned? Are you sure none of them are overall as some looked to be overall basis?

Answer 30

All my comparables were zoned. This was a high street shop which are typically zoned.

Question 31

Did the subject property have an EPC or a display energy certificate? Should it have a display energy certificate?

Answer 31

The property did not have an EPC rating as listed properties are exempt and it did not have display energy certificate as building needs to be at least partially occupied by a public authority, have a total floor area of over 250sqm and is frequently visited by the public.

Question 32

Do all 3 of these things need to be true for a DEC?

Answer 32

Yes

Question 33

How long do DECs last?

Answer 33

1 year for buildings with total useful floor area more than 1,000sqm
10 years when total useful floor area is over 250sqm

Question 34

Are there any regulations that require certificate in window?

Answer 34

The Energy Performance of Buildings (England and Wales) Regulations 2012

Question 35

What penalty is there for not showing a DEC?

Answer 35

£500

Question 36

You said there was an adjustment in previous rating list, is it right should be carried over or on a case by case basis?

Answer 36

Need to attempt to value accurately at each valuation and therefore not bound by previous relativities thought they do represent some evidence of value

Question 37

Is there any case study that it should be reviewed per list?

Answer 37

Barnard & Barnard V Walker 1975 provided a presumption that differentials and adjustments between lists should continue to run in the absence of evidence to rebut the presumption.
Lamb V Minards 1974 – dwelling house but gave the Lands Tribunal view that there was a presumption that the relative values of different properties were correctly expressed in the old list were of no direct assistance, the relativities might be of some help in arriving at the correct valuations in the new list.

Question 38

Can you describe the building?

Answer 38

Timber framed with wattle and daub infill and whitewash, this is often removed and filled with brick at a later date and rendered. Steep pitched roof with high chimney stacks. Smaller windows subdivided into smaller windows by timber mullions, glass production less sophisticated so smaller panes, decorative leaded panes.

Question 39

The rent on the subject property was increased to £30,200 on rent review. Why was this figure not rounded down/up? Was this because the rent included VAT?

Answer 39

I asked for the lease and checked figure on FORs

Question 40

What evidence did the agent supply as part of their submission?

Answer 40

Analysis of rent and explanation of base rates of the street decreasing.

Question 41

Where there any access issues or masking issues?

Answer 41

No access issues, no masking issues in the shop as very thin cast iron pillars.

Question 42

Two pictures of return frontages – why did you apply same rate as your appears not to have any windows? One has strong return frontage so felt was there a justification for 5%?

Answer 42

Windows were blocked up wIth advertising. Still had the benefit of it. Other shops had 5% so determined this was reasonable plus agreed in 2010 list.

The way we value from list to list, no reason to depart. I stripped it back and looked at the rent both ways. I had regard to 2010 which was covered by case at tribunal. Cant see any reason between own analysis and tribunal any reason to depart from that.

Question 43

I see you have inputted some plans, at scale of 1:827 can you explain scale?

Answer 43

The ratio of what the size on the plan is equal to on the ground. 1cm on the paper is 827cm on the ground

Question 44

Why did you choose this scale?

Answer 44

Led by making sure it was visually clear on the page. I am however aware there are recommended scales.

Question 45

Is the plan to scale?

Answer 45

No, because copy and pasted the plan. Distorted scale. Original plan was to scale.

Question 46

How many km in mete?

Answer 46

1 km = 1000 m

Question 47

How are buildings graded? How many types?

Answer 47

Grade I, Grade II and grade II*

Grade I - exceptional interest
Grade II - special interest
Grade II* - particularly important buildings of more than special interest

Means building consent must be applied for in order to make any changes to the building.

Question 48

Were there any incentives at the beginning of the lease?

Answer 48

No our records showed that there was no incentives given

Question 49

The rateable value now sits lower than the rent on the subject?

Answer 49

The valuation actually came out at £30,231 so £31 above the rent. This was rounded down so that is why the assessment appears lower than the rent. Really it is in line.

Question 50

What changes were made to the property – you said it was updated in the 20th centure?

Answer 50

The shop was updated to include a glass retail shopfront.

Question 51

How would you adjust for fit out of a shop?

Answer 51

If I had a shop in a shell condition in a new letting, I would try and apportion the cost associated with rateable fit out, take the cost of rateable fit out and ammortise this over the period of the lease to create an annual equivalent to add into rateble value. Using YP.

Question 52

Why didn’t you make any adjustment for fit out?

Answer 52

Because the rented property, already reflected the fit out, the rent was for fitted out unit hat they already had as was rent review. If was new letting then rent related to shell but would have to adjust for it mine wasn’t a new letting and no adjustment for it.
Already has the function of the shop without the need for fixtures, fittings and branding
Had FOR details from 2010 when they took ownership, rent review, would have had regard to it at 2010. But I would expect we considered this at 2010 and the shop was previously an independent shop. Ive checked it and had regard didn’t think I needed to make any adjustments at the rent review stage.

• Holland Barrat is huge national organisation likely with teams of people, have certain level of branding and their stores to look a different way – this would fall outside the definition of rateable value.

Question 53

You say the assessments were reduced but not by challenge, why was the tone reduced?

Answer 53

Following a summary valuation enquiry by the MP and thorough review of rental evidence, reports raised to amend RV on 84 properties. Chief valuer and Unit head are aware and involved.

Question 54

What is the time limit for dealing with hardship cases?

Answer 54

2 months