MG- Rating Flashcards
In the retail shop you valued, if you had measured it what basis would you use?
NIA
Zone the unit in 6.1m increments to zone c, after that the remainder is the depth that is left
nonstructural partitions are ignored when using the zoning method.
Internal widths should be taken from the block/brickwork or from the plaster surface.
Staircases, columns, piers, structural walls, escalators, lifts and other similar features should be accurately plotted on plans.
Toilets should be measured and shown separately
What is the acendun case and what was the uplift per sq m ?
Decision in Bunyan (VO) V Acenden Ltd states Cat B space is worth more than Cat A.
Negotiation and then … CBRE and VO agree Cat B addition of £25/sqm to be applied to Central London grade A offices.
What is the Shoosmiths and mando case and what was the decision ?
Shoosmiths and Mando Group v Hitchings (VO [2024] VTE CHG100528632
Following on from the Acendon House case in 2023, this was another appeal involving the value attributable to offices which on the material day were in Category B condition [ie including tenant’s rateable fit-out works] and what enhancement should be applied for Category B over Category A [shell].
The winner? The ratepayers, in that they achieved reductions in value, albeit enhancements for Category B fit out were applied and we understand that the valuation office (VO) has appealed to the upper tribunal (UT).
The valuation tribunal (VT) applied a £15 per sq m uplift for Shoosmiths’ office in Manchester whilst they ascribed £10 per sq m for Mando (Liverpool). This compared to the £25 per sq m uplift “universally accepted” [in the tribunal’s words] for offices in and around London, where costs would be higher.
Does the increase of £15 for fitout in manch and £10 psf in liverpool proposed in shoosmiths hold much weight?
Not yet - diff to quantify how they have reached these values
What is the key outcome of the acendun v bunyan case?
Applied £47 per sq m in London on 2017 list for cat b fit out Ascenden Ltd’s offices at Ascot House, Maidenhead - CAT B Space is worth more than Cat A
Renegotiated to apply £25/sqm to be applied to Central London grade A offices.
Give an example of an MCC in birmingham
Paradise Birmingham impact on offices
What did O’Brien v Harwood 2003 establish about tone?
that there are THREE STAGES:
- At first, when a new rating list is put on deposit, entries will carry relatively little weight: they are opinions of value by the valuation officer, as yet unchallenged and untested by negotiation.
- Over time assessments will be challenged and agreed or determined by a valuation tribunal or this tribunal or accepted by lack of challenge.
- Finally a stage is reached where enough assessments have been agreed or determined or are unchallenged to establish a pattern of values, a tone of the list.
How does the fit out debate affect space that is let furbished ?
not clear answer - how does this fit in with the vacant and to let hypothesis anyway?
What are the timelines for the CCA process?
VOA has 12 months to decide on a check but they aim for 3 months
4 months after check decision for a challenge
18 months voa for a challenge
4 months to appeal challenge to tribunal
Give an example of co-ordination with the VOA
Receiving a challenge or check decision that you don’t agree with and trying to have a conversation or agreeing to go and measure a property with the voa
What is the AVD in scotland?
What are the last 4 rating lists?
2005,2010,2017,2023
What is the purpose of revaluation?
The whole purpose of having a revaluation is to reassess relativities and rebase the valuations to the new dates an
What 2 things should each new rating list take into account?
PHYSCIAL - takes into account the changed physical circumstances at MARKET - changed market conditions at the new Antecedent Valuation Date.
what has the autumn budget (30 oct) said about rating?
what is a key change in the local gov and finance wales bill (24) in terms of rates mitigation?
It introduces a new anti-avoidance framework to permit the Welsh Ministers to
specify artificial anti-avoidance activity in regulations. The provisions also permit the
Welsh Ministers to impose financial penalties in connection with anti-avoidance
arrangements.
If a unit is split into two hereditaments can you get a new rate free period?
Yes, if the hereditament is split and returned to the LL they might be able to benefit from a fresh rate period once the property is brought into the rating list (example unit 6a/6b)
If you measured a unit and found that it contained say an office space which would increase the assessment would you declare this?
At present there is no duty to notify but understand there will be once the mechanism for this is in place
- tell client to budget for anticipated increase of xx
What is a compiled list error??
An error made from the AVD (ie the voa bring a property in at apr 23 and have the incorrect factual details) - THIS MEANS THEY CAN ONLY CHANGE THE RV FROM THE DATE THEY REALISE THIS - CANT GO BACK TO APRIL 2023
- if the property changes e.g. adds in an office after apr 23 then the VOA can charge the RV from the date the change took place.
what is the summary of jackson vs canary whard
OFFICE DELETION - 2 floors of a tower block (One Canada Square) at Canary Wharf, which had been stripped out to shell for 2 years.
AT the upper tribunal the case was decided
- The assessment of whether or not the property was capable of beneficial occupation is a matter of objective fact requiring no hypothetical assumptions - didn’t matter that there was not a scheme of works.
The nominal assessment of rateable value £1, determined by the Valuation Tribunal, was upheld.
What is the key case summary for monk and newbiggin?
Supreme Court - OFFICE strip out for refurbishment
The offices had been stripped out including removal of sanitary fittings, electrical wiring including the comfort cooling system, most of the ceiling tiles and light fittings and about 50% of the raised floors.
Where premises are undergoing redevelopment as a consequence of which they
are incapable of beneficial occupation they do not constitute a hereditament and, therefore,
them repair assumption in the statutory formula cannot apply.
If it is determined that the
premises do constitute a hereditament one must then consider the mode or category of
occupation and then whether the premises are in a reasonable state of repair consistent with
that mode or category.
in this case the Supreme Court ruled that Monk premises were undergoing refurbishment on
the material day and that the Upper Tribunal was entitled to alter the rating list so as to
reduce the RV to £1 (“building undergoing reconstruction”).
In the contractors basis how can you deduct for obsolescence or age?
The Monsanto case established a scale to be used if accounting for age/ obsolescence
What’s the final stage of the contractors basis?
Stand back and look - assess if it looks appropriate per sq m
What is the premise of the receipts and expenditure method and what type of properties ?
Concept is that income less expenditure = divsible balance
- Often used for pubs, leisure etc
