Case Study - Rating 2
Ref: JH/11/7'07 Jean Howe – Partner Kirkby & Diamond
Kirkby & Diamond clients bought a large vacant office block in October 2005, six months after the 2005 Rating List came into force. The Rateable Value of the entire property was £377,500.
Subsequently the clients split the building into a multilet office building and the rating assessment was split by the Valuation Office.
The objective was to reduce the Rateable Values in the List significantly.
Meetings were held with the Valuer for the Valuation Office, the building was remeasured jointly and after a significant period of negotiation it was agreed that the Valuation Office would not agree to the Rateable Values which were considered to be appropriate by Kirkby & Diamond.
The preparation of the submissions to the Local Valuation Tribunal involved a huge amount of analysis of lettings of similar office blocks in the town and adjustments between the terms of the individual lettings to achieve a rate per square metre in accordance with the definition of Rateable Value as required.
Kirkby & Diamond Partner, Jean Howe, subsequently attended the Tribunal hearing and presented the case for the occupiers and acted as advocate for the clients at the hearing.
Kirkby & Diamond’s detailed knowledge of the office market allowed a very detailed analysis of the comparable evidence, which was used to support the case for a significant reduction in the Rateable Values.
The Rateable Value of the entire building was subsequently reduced by £84,500 to £293,000 with the split assessments relating to the individual office premises achieving a reduction of £68,500 Rateable Value in total.
As the current rate in the £ is 44.4 pence for the year 2007/8 this has resulted in a saving of in excess of £37,500 in rates payable for that one year alone.