Case Study - Rating 1
Ref: JH/09/7'07 Jean Howe – Partner Kirkby & Diamond
The client owned a large warehouse with a Rateable Value of £191,000. This was felt to be too high.
Generate comparable evidence of similar properties in that town and those nearby. If evidence supported the claim then a proposal be made to the valuation officer to alter the List at hearing.
Jean Howe, Partner at Kirkby & Diamond assessed the Rateable Value and concluded that it was significantly above the value that should have been entered into the List. She made a proposal to alter the List on behalf of the client and waited until the matter was listed for hearing (as the Valuation Officer will not discuss cases prior to it being listed for hearing).
Subsequently as a result of detailed research into comparable evidence of similar properties in that town and nearby towns, it was agreed that the base warehouse value of £68.25 per square metre, as used by the Valuation Office, should be reduced to £55 per square metre with appropriate reductions for all the office and mezzanine space that was provided.
The Valuation Office had applied a 20% figure to all mezzanine figures under the 2005 List which was previously at 10% of the valuation applicable to main space. She was able to agree that second floor mezzanines would be valued at 10% of main space value rather than 20%.
As with all comparable evidence, the careful research methods and interpretation of comparable evidence available to Valuers within Kirkby & Diamond helped them to be able to justify this very substantial reduction.
This resulted in a revised Rateable Value of £154,000 being achieved, by negotiation a saving of £37,000 Rateable Value. The client subsequently benefited from a significantly reduced rates bill for the next four years of the 2005 Rating List.