Local taxation level 2

Question 1

Talk me through the school valuation you did?

Answer 1

Local authority school valued for rating purposes.
Confirmed size, age and building category
Checked pupil numbers against design size and overcapacity
identified % of external works and undeveloped land
Applied decap rate of 2.6%
Stand back and look
Flat roof allowance of 1.2%

Question 2

What do you mean by building category?

Answer 2

Cat 1 - Main school buildings intended for permanent use
Class space
Assembly halls etc
Cat 2 - Sports buildings like sports halls
Cat 3 - Temporary structures eg temp classrooms for overspill

Question 3

What do you mean by checking pupils against design size?

Answer 3

Secondary schools base GIA is 1,270m2 then 7.1m2 for each student.

Question 4

What do you refer to for school vals?

Answer 4

VOA rating manual

Question 5

What are the 5 steps of contractors test method?

Answer 5

Estimated replacement cost
Adjusted replacement cost (functional, technical and economic)
Add site value
Apply decap rate
Stand back and look

Question 6

Are there any RICS guidance on contractors test?

Answer 6

RICS guidance on contractors basis of valuation for rating purposes 2nd ed Aug 2017

Question 7

Any recent case law on contractors test?

Answer 7

York musuem case.

Question 8

What is the principle of Contractor’s test?

Answer 8

Dawkins v Royal Leamington spa case - the hypothetical tenant has an alternative to leasing and paying rent for it. He can build a similar building himself. He could borrow money and pay interest on it or use his own capital. Argument is that he will be unwilling to pay more than he would pay interest.

Question 9

Daventry appeal, tell me about it?

Answer 9

2 adjoining industrial units. Agent requested merger citing the units have been affected by PICO as these units have no intercommunication but are contigious. I requested evidence by way of lease regarding the use of the land infront of the units. This will help to understand if there is intercommunication, if there exclusivity then they could have been merged prior to PICO. If they dont, it is a valid appeal.

Question 10

What was the material day, effective day, AVD for this appeal?

Answer 10

Material day –
Eff day –
AVD 01 Apr 2008

Question 11

What is an FOR?

Answer 11

Forms of return. Legal document requesting rental and lease details to assess RVs

Question 12

What is Lotus Delta v Culverwell Case?

Answer 12

Case regarding procedure for considering evidence. Shoe shop in Leicester. 6 Propositions for considering evidence.

1. Subject rent is starting point.
2. More weight attached to rents that reflect statutory definition.
3. Rents on similar properties.
4. Assessments of other comparable properties.
5. Make an opinion from available evidence.
6. if no rent available on subject, review of other assessments helpful but difficult to reject actual rent.

Question 13

Why did you apply % of adjustments to rents?

Answer 13

To comply with the statutory definition. These % are based on analysis of leases. 5% usually adopted for ext and int repairs but in some locations 7.5% for ext repairs. 3.5% for insurance reflects changing insurances rates. Valuer must always look at the property and decide what rate is appropriate in the circumstances.

Question 14

What kind of shops were the haverhill shop?

Answer 14

A end terrace shop. A1 user. Next two shops were A5 users.