CASE STUDY Flashcards
(150 cards)
1
Q
What is a proposal to alter the rating list?
A
A proposal is submitted by the ratepayer, or their representative when they believe their business rates are incorrect. The proposal is submitted within the CCA process.
2
Q
Can you explain the CCA procedure?
A
The ratepayer/representative begins by submitting a check proposal, which deals with the factual matters regarding the hereditament, such as size, split or mergers, or deletion. If the check team have disagreed with the changes, the ratepayer/representative can submit a challenge proposal which deals with more complex, valuation specific issues such as the rate, MCC or area disputes. Should the ratepayer/representative disagree with the VOAs decision, they can then appeal the decision before the VT.
3
Q
Can you explain the key dates and deadlines for the CCA process?
A
The ratepayer/representative can make a proposal against the 2017 Rating List at any point, beginning with the check stage.
They can progress to challenge within 4 months of the VOAs check decision or 16 months for MCC proposals, or where the VOA has not made a decision within 12 months.
They can progress to the appeal stage within 4 months of the challenge decision or where the VOA has not responded to the challenge within 18 months.
4
Q
What is the Rateable Value definition? Where would you find this?
A
The definition can be found in the Local Government Finance Act 1988, Schedule 6, paragraph 2.
“The Rateable Value of a non-domestic hereditament, none of which consists of domestic property and none of which is exempt from local non-domestic rating, shall be taken to be an amount equal to the rent at which is estimated the hereditament might reasonably be expected to let from year to year on 3 assumptions.”
5
Q
What are the 3 assumptions for the definition of Rateable Value?
A
1) the TENANCY BEGINS on the day by reference to which the determination is to be made. (VD)
2) immediately before the tenancy begins the hereditament is in a state of REASONABLE REPAIR but excluding from this assumption any repairs which a reasonable landlord would consider uneconomic. (GOOD REPAIR)
3) the tenant undertakes to pay all usual tenant rates and taxes and to bear the cost of the repairs and insurance and other expenses. (FRI)
6
Q
What is the main legislation in relation to the CCA process?
A
Local Government Finance Act 19888 and The Non-Domestic Rating (Alteration of Lists and Appeals) (England) Regulations 2009 and its amendments.
7
Q
What is the case law relevant to your case study?
A
Lotus and Delta v Culverwell (VO) & Leicester City Council (1976 RA 141)
8
Q
How did you check for COI?
A
RICS Conflict of Interest, 2017.
Consider the steps.
I checked the property address and the ratepayer to ensure that I had no professional or personal dealings.
9
Q
Can you give me an example of a COI?
A
A COI could be carrying out valuation or providing valuation advice for both the seller and buyer of the same property, as my advice would be conflicting due to each parties interest.
10
Q
What guidance would you refer to for COI?
A
RICS Conflict of Interest, Professional Statement, March 2017 (1st Ed)
11
Q
What legislation relates to the validity of a CCA proposal?
A
The Non-Domestic Rating (Alteration of Lists and Appeals) (England) Regulations, 2009 - part 2.
12
Q
Can you give me an example of a possible grounds of proposal?
A
Where the rateable value shown in the list is inaccurate by reason of a MCC which occurred on or after the rating list was compiled.
Where the RV was inaccurate on the day the list was compiled.
13
Q
Can you give me an example of a valid proposal?
A
Where the proposer is the occupier and ratepayer or their representative, or have a valid interest in the property.
Should be made on one of the grounds of proposal as set out in Regulation 4.
Should contain the basic details, such as name and address of proposer, the relevant authority, proposed RV and supporting evidence.
14
Q
Was the IP a small proposer?
A
No it was a representative.
15
Q
What would you consider a small proposer? How would it affect the way you approached this project?
A
If the IP was a small proposer I would have used plain English, detailed explanation of the process and providing additional guidance.
16
Q
Is your project governed by the Global Standards i.e. Red Book?
A
No, this was a statutory valuation for rating purposes.
17
Q
What would you do if you could not settle a Challenge case within the statutory deadlines?
A
If the valuation couldn’t be agreed, I would have issued a decision notice that sets out my reasons, allowing the customer to consider if they wish to move to the next stage.
18
Q
How did you determine you were competent to deal with this instruction/case?
A
I determined I was competent to deal with this instruction/case because I have extensive experience handling retail rating proposals in this area.
19
Q
How did you apply the Conflicts of Interest, 1st Edition 2017 guidance?
A
I carried out a COI
I ensured that any potential conflicts were disclosed early and openly
If a conflict was identified, I would have withdrawn or managed the conflict
I would document all disclosures and decisions to provide a clear record of compliance
20
Q
Who was your most important stakeholder?
A
Department for Levelling Up, Housing and Communities (DLUHC).
Now replaced by the Ministry of Housing, Communities and Local Government (MHCLG).
21
Q
Who is the minister for your client department? Has the DLUHC changed?
A
Michael Grove.
Yes, it has been renamed to the Ministry of Housing, Communities & Local Government (MHCLG) and the minister is Angela Rayner.
22
Q
Are you aware of any guidance regarding rating consultancy?
A
The RICS Rating Consultancy Code of Practice, 5th edition, April 2024
23
Q
What would some typical ToE be for a rating instruction? How would you determine your fee basis?
A
As a minimum the TOE should include:
a. Identification of the client.
b. Confirmation that the service relates only to a single specified general rating revaluation unless clearly and unambiguously stated otherwise.
c. Confirmation of the extent to which the service includes assessment alterations during the revaluation period and outline of the service to be provided.
d. Identification of the property/properties in reflect of which the service is to be provided together with the extent to which the property/properties will be inspected.
e. Details of how the fees will be calculated and when they are due.
f. Details of the handling of any rate refunds if these are two be payable to the rating consultant.
RICS, IRRV and RSA do not prescribe scales of fees and they have to be agreed with the
client for each instruction.
24
Q
If you were the agent, other than this compiled list Challenge, how would you mitigate your client’s rating liability?
A
I would check for property reliefs/exemptions such as small business rate relief, charitable rate relief, empty property relief.
25
There were no changes proposed at Check but how would you determine if the unit of hereditament is correct?
All facts were agreed at Check.
26
What would you do if an ATM at the front of the unit has been installed?
Cardtronics UK Ltd v Sykes (2020):
The UK Supreme Court ruled that ATMs within stores should not be separate hereditaments. The retailers had "paramount control" over the ATM spaces.
27
How did you determine the age of the subject property? Typical construction and features of a 1940’s property such as this?
1. Our internal records.
2. Cross checking with 3rd party sources like EG or CoStar.
3. You could have also checked historic websites and local records.
4. In addition to the findings of your desk-based review/inspection i.e.
a. the cavity wall construction
b. the stretcher bond brick work of the next-door bank
c. Some of the features likes the hipped roof.
28
What type of brick construction? How did you determine this?
Stretcher bond brick work, determined by looking at the construction of next-door.
29
Does it have an EPC rating? What is the building’s planning history?
The EPC rating could not be found – but could play it safe at C. No planning history.
30
What is next door? What is above the subject hereditament?
Neighbouring units are both retail units, above the subject hereditament is accommodation.
31
How would you treat this if it were a customer toilet?
I would have excluded customer toilets from NIA.
32
What are typical defects of this type of property from this period?
Dampness, poor insulation, dated wiring and plumbing, structural movement.
33
Is this only for loading for customers? Is there no rear loading for the subject? Any affect on the rent?
Yes, there was loading at the front of the property.
34
How does this enhance accessibility for all? Think about Inclusive Environments. Maybe NPPF - Section 8?
Inclusive design – S8 of the National Planning Policy Framework (NPPF).
Entrance – ensuring it is accessible to all, incl those with disabilities.
Internal layout – enough space for wheelchairs or mobility aids/
Toilets – accessible for disabled users, following the Equality Act 2010 guidelines.
Signage and lighting – clear, visible signage and good lighting.
35
Are any of these anchor tenants? Do they have any effect on the level or direction of footfall?
Yes, M&S foodhall. These do have an effect, they increased the level of the footfall past the subject unit.
36
How did you determine the level of activity? Footfall figures? Vibrant and active compared to what? Also, when? Do you mean currently or at the material day?
I inspected the local area and observed the level of footfall, noting that it was vibrant and active. I also noted that there were no vacant units.
37
What were the lease details for the previous occupier?
The previous occupier let on a 15 year term from 1st March 2006.
38
1. How did you conduct your desk-based review? (aside from reviewing the previous plans and inspection notes).
Location, aspect, business types, public transport, amenities.
39
What does the RICS COMP state regarding zoning?
RICS Code of Measuring Practice, 6th
Zoning – the use of zones when assessing the values of shops is a valuation, not measurement, technique.
Consequently, it is not part of this code.
40
Can you explain zoning? Did you apply it to your measurement or valuation? Why did you use a zoned approach? What zoning pattern? Why? Are you aware of any other zoning patterns?
Zoning is a method of measuring retail premises to calculate and compare their value – it is a form of analysis. The theory is that the area closest to the shop window is most valuable, with the value decreasing with distance away from the frontage.
The zoning pattern used was the standard 6.1m depth zoning for ZA, ZB and remainder.
Can be 4.3m or 9.43m in London.
41
Did you consider any other approach other than zoning?
Overall approach, although the zoning approach was consistent with the market.
42
Did the agent’s approach to zoning impact the “measurements” i.e. the dimensions? Or just the calculation of the zoned areas but using the same measurements?
The agents approach to zoning did not impact the dimensions, just the calculation of the zoned areas.
43
What range of evidence? How wide does this range need to be?
K Shoe Shops v Hardy
Locality taken to mean area within sufficient evidence to produce a reasonably expected rent.
I identified evidence of retail properties on the same street or within close proximity.
44
When was the property last inspected?
December 2010
45
Had there been any changes to the property since the last inspection? Did you review the planning history?
Yes, I reviewed the planning history and there had not been any changes to the property since the last inspection, but the last inspection did not record any structural walls, therefore I needed to inspect to confirm.
46
As the survey was not disputed on the “no-change Check”, were there any settlement in the previous list? If there was an agreement in the 2010 list and there had been no changes to the subject property, would an inspection be required? Wouldn’t the survey be sufficient to produce a professionally adequate valuation ion line with VPS 2?
There had been no settlement in the previous list.
47
What health and safety did you consider when inspecting? Later on, you state you considered Surveying Safely, how or which part?
VOA lone worker policy.
RICS Surveying Safely Principles for Property Professionals, 2nd edition 2019,
Section 3 – assessing hazards and risks.
Section 6 – Visiting premises or sites.
48
Did you consider any PPE was required? How often do you check your PPE?
No, PPE was not required. Should be checked regularly, before each use, and weekly and monthly.
49
Did you consider any ESG factors during your inspection? RICS Guidance on this?
Sustainability and ESG in commercial property valuation and strategic advice, 3rd Ed, December 2021:
Environmental: energy efficiency, waste management, carbon emissions, and environmental impact of the building.
Social: impact on the community, accessibility for people with disabilities, health and safety standards, and the local employment opportunities.
Governance: Compliance with laws and regulations, transparency in operational practices, and ethical considerations.
50
Did you consider any diversity and inclusion issues on your inspection?
Equality Act 2010, during the inspection I would assess that the property provides adequate access, such as ramps, wide doorways, and accessible washrooms.
51
Can you describe how you inspected externally?
1. Method of construction
2. Repair and condition - describe from roof downwards
3. Car parking, access, loading arrangements
4. Defects - structural movement
5. Check site boundaries -using OS map / title plan
6. Age the building - ask client, research date of planning consent, Grade Listing at Historic England, Land Registry, local historic records, architectural style, or the architects certificate of practical completion.
52
What did you note during your inspection of the locality?
Accessibility to transport, commercial activity, infrastructure, neighbouring properties, local amenities.
53
I note there is no AC for this retail unit, if there was, how would you treat this?
For retail properties, AC is based on £7 sqm addition.
54
What value significant factors did you record? How did you ensure you did not miss any relevant details?
Condition of the building, location, accessibility, carparking.
I took photographs and made detailed notes.
55
What measuring tools did you use? Pros and cons of these tools? Did you calibrate your laser? How often do you do this?
Disto laser- pro: quick and accurate for measuring long distances, cons: inaccurate in sunlight and on tiles and requires regular calibration.
56
Why did you measure to NIA and not IPMS? How would you measurements been different if you had measured to IPMS?
NIA is commonly used for measuring retail, if I had measured to IPMS, the measurements would have been different because IPMS includes GIA.
57
Talk me through how you measured to NIA. Where did you measure from? What did you include/exclude?
I measured from the inner face of the external walls. I included all usable floor space and excluded common areas, internal structural walls, WC facilities, plant rooms, areas with a ceiling height below 1.5m.
58
How did you determine the wall in question was non-load bearing?
Thickness of the wall, position within the building and whether it aligns with structural columns, tapping the wall, non-load-bearing walls produce a hollow sound.
59
13. You have determined the wall is non-load bearing but why value do we value rebus? Can you not accept the agent’s contention if this could be converted into a structural wall? Supporting case law? Would not installing a support beam just be a minor amendment?
1. Consider the facts on MD.
2. Always value Rebus at the MD. The property should reflect its current state and use, not its potential alternative uses and can only consider minor changes.
3. For the first issue, I would have regard to Scottish v Newcastle and the first limb- the physical limb.
I’d there was a structural wall before the MD then u would have regard to it and zoning would stop as a structural wall would be more than a minor change.
If it was after the MD, then it would have been outside the scope of the CHG and u would have amended by VON.
60
Your inspection confirmed there was no change in areas or the survey. If there were changes to the survey, how would you treat this with regard to the previous list?
I would have issued a VON.
61
Are you aware of any changes to Transition for the 2023 list?
Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2022:
1. Removal of downward transition - full reduction in their bills, rather than having reductions phased in gradually.
2. Capping increases - for business' facing increased RV, a cap will be set each year to allow for a gradual adjustment
3. Valuation Certificates and Appeals - VO to issue certificates for the application of the transitional relief rules.
62
What if the property had been improved? Are you aware of any relief the ratepayer might be liable for?
Business Rates Improvement Relief: Ratepayers who improve their property (e.g., adding extensions or major refurbishments) may be eligible for relief, ensuring they do not face immediate rate increases as a result of the improvements.
63
The Zoning method is consistent along the parade, but is that what we are looking for?
The decision to value a shop on the overall basis, as opposed to a zoned shop, depends upon the marketplace.
Need to apply a consistent approach to analyse the £sqm accurately.
64
When was the last inspection of the other retail units in the parade? If you had to inspect the subject to confirm the zoning was correct, how can you now just accept the zoning on the other units to be correct without an inspection?
The units had been inspected in the last 5 years; I noted that no challenges had been made and also cross-checked the zoning of the other units by reviewing their planning history.
65
You have stated “tone”, does that mean you believe the tone of the list has been established for this parade?
The fact that the tone has been successfully unchallenged this far into the list does establish that there is a tone.
66
If you believe the tone has not been established, why not? Did you refer to any case law?
Futures London
67
What was the 2010 £/m2? Was this agreed?
£490/M2. This was agreed, there was no challenge.
68
For the subject rent, what method of adjustment do you use?
I adjusted 3.5% for external repairs.
69
Talk me through a rental adjustment of a rent free period / premium or reverse premium / repairing covenant etc.
I would adjust evidence to account for differences in lease terms.
For a rent-free period, I’d spread the rent-free period over the lease term.
For yields, I’d adjust based on market conditions and the amortisation period.
RICS guidance suggests adjusting for incentives like rent-free periods depends on the length of the period, for instance a 3-month rent period would usually be given for tenant fit out.
70
Are you aware of any recent caselaw regarding rateable fit-out for offices?
Bunyan (VO) v Acenden Ltd [2023] UKUT 17 (LC):
Decision has clarified that tenant fitouts should be considered when valuing a property.
71
Did you refer to any case law for post-AVD rents?
Specialeyes plc v Felgate (VO) [1994 RA 338]):
Rent close to AVD carry greater weight (Specialeyes plc v Felgate (VO) [1994 RA 338])
o Evidence divided into 3 categories:
1. Rents set 2-3 years prior to AVD – little weight.
2. Rent immediately prior/close to AVD – best evidence.
3. Post AVD rents – admissible but indicate trend value due to changing circumstance.
72
What legislation governs FORs?
Commissioners for Revenue and Customers Act 2005.
73
How did you confirm these transactions?
FORs verified also 3rd party sources.
74
How did you ensure data security when discussing your rental evidence with 3rd parties?
I ensured that I remained fully compliant with CRCA (2005) regulations while still providing the agent with the necessary information.
75
What guidance did you refer to in CoStar and EGI?
Market reports for the subject area.
76
Are you aware of what Category B and C evidence are, and have you ever used them?
Category A – DIRECT transactional evidence
Category B – general MARKET DATA providing guidance rather than a direct indication of value, such as evidence from published sources, commercial databases, indices, historic evidence and demand/supply data
Category C – other sources, such as transactional evidence from OTHER PROPERTY TYPES and locations and other relevant background data
Yes, I use Cat B- market trends and Cat C- to look at the general market within the locality.
77
What guidance did you refer to regarding your comparable evidence? How did you apply this guidance?
Comparable Evidence in Real Estate Valuation, 2019:
I adjusted and weighted my evidence.
78
What makes a good/key comparable?
Closest to AVD and statutory definition under Section 2, Schedule 6 LGFA.
Minimum adjustments to accord with statutory requirements.
→ New leases preferred.
→ Rents of hereditaments with same mode and category of occupation (City Duck)
79
This appears to be on the most western end of the parade. Where is the prime pitch? If the eastern end (where the agent’s comps are) is the lower valued pitch, is Comp 1 in the prime pitch?
The western side of the pitch is prime location, this is directly accessible to transport links.
The ratepayers representatives lower rental values reflects that its lower valued pitch, nearer the dual carriageway, away from the footfall.
80
Where is the station? Direct and level of footfall with regard to your comps?
The station is located to the west of the property, allowing direct access to the west parade, this could contribute to an increased footfall in that area.
81
13. Why would you normally give most weight to a NL?
NL are preferred. Reflective of true market value at arms length, agreed upon between willing landlords and tenants.
Both parties can walk away, the KEY difference between RR and LR.
82
Slightly larger comp but this looks to be the smaller property on your Goad map, was there a basement or other floors?
Yes, the unit had a basement.
83
A comparable appears to be a high outlier, why? Was the RR to OMV?
It was an upwards only RR.
84
How would you treat new evidence received from the agent?
Further evidence relating to the grounds of the proposal may be considered.
85
Was all your evidence in the same mode and category as the subject? Does this matter?
Williams (Valuation Officer) v Scottish and Newcastle Retail Ltd and Another - (City Duck):
Yes, they were the same mode and category. Rents of hereditaments with the same mode and category of occupation are preferred.
86
Settlement evidence shows a DN not appealed and a WD. Is this good evidence of the Zone A price of £575/m2 being reasonable? How would you treat this evidence if these were both agreements?
Yes, this is good evidence that the tone is accepted. If these were both agreements, the evidence, though not perfect, can provide a strong indication of the tone, especially if supported by other comparables in the same area.
87
Before you issued your DN, your timeline shows you entered into negotiations. How did you ensure good discussions with the agent?
In my initial decision I presented my evidence and reasoning, the agent asked for a phone call to discuss my approach and evidence, the agent agreed with my findings and I issued a decision notice.
88
What professional standards did you uphold?
RICS Code of Conduct – Rule 5: Members must prioritize the public interest, be accountable for their actions, and work to prevent harm while upholding public confidence in the profession.
The ratepayers’ representative’s measurement for the width was larger, which would have increased the Rateable Value (RV). However, my own measurements showed a smaller width. In alignment with public interest, I chose not to adopt the agent’s figures.
89
What other photos would you have taken and why?
Yes.
External - building frontage, access points, surrounding area. This helps to document the visibility, location and overall condition.
Internal - including the retail area, the WC. This provides a complete understanding of the space’s functionality.
90
How did you prompt trust in your interaction with the ratepayer?
I was transparent, I clearly explained the purpose of the inspection. I actively listened to the ratepayer and I maintained respectful and profession throughout the inspection.
91
Weren’t FORs already issued for all comparable properties in the parade? Fine for not returning? Just a civil penalty? Any other penalties?
Paragraph 5a(1) of Schedule 9 to the Local Government Finance Act 1988.
Yes.
The ratepayers must return FORs within 56 days from the day they received it.
If they do not return the form within 56 days they will be liable to a penalty of £100.
92
If there were offices upstairs and they were part of the same hereditament, how would you value the offices?
If there were offices upstairs then I would have valued it on a seperate line entry as an office (higher rate?)
93
If there was basement retail, how would you value this?
I would value at a lower rate.
94
What it the RV for 2023, how do you think this sits with your advice for 2017?
the £/m2 is £600, which agrees with the advice I provided for 2017.
95
I note your analysis of the 2021 subject rent NL is £20,810 per annum so can I assume the RV is around this £20,500? If it were lower, say at £18,000 would you refer the 2023 RV to maintain an accurate list?
Yes RV is £20,500.
96
I note the agent’s proposed RV is less than £15,000 - What affect would this have on their client’s rating liability? What multiplier would you apply to this property?
Small Business Rates Relief (SBRR).
Tapered Relief: For properties with an RV between £12,001 and £15,000, the relief is tapered, meaning the client would pay a reduced percentage of the full rates.
49.9p multiplier.
97
The agent has measured to 2 decimal places but you have measured to 1. Did you round down, how many decimals places did you measure to? Did you not agree your smaller area with the agent?
I noted that the ratepayers representative had measured 6.0m zones, which was not consistent with the market approach.
My measurements were in line with what we already had on our survey data.
I discussed my measurements with the agent and they agreed with them.
98
What is an acceptable level of tolerance for measuring a shop like this?
1-2%
99
Your plan is not to scale, if you were to draw a scaled plan, what scale would you use?
1:100
100
Forgetting rating for a moment, say you were instructed to calculate the OMRV for a NL or a RR or a LR, what other sort of evidence could consider?
Comparable evidence, tenant profile, incentives, market trends, covenant.
101
You have adjusted for 3.5% for external repairs? Why 3.5%? What is this based on?
No guidance but our % are based on the analysis of actual evidence at the AVD provided by our BEAMS team.
102
A comparable is a 7 year term instead of the 10Y, did you consider the effect on the rent?
Might impact on rental level, thats why I put less weight on the comparable.
103
In your A&A you have also stated this is an IRI lease like the subject but you have adjusted for only 3.5% this time for external repairs, why?
This was made in error, but this would have further supported the current tone, as the correct analysis is £593/m2.
104
How did you know the areas of your comparables were correct?
They had all been inspected and measured within the last 5 years I cross-referenced our data with 3rd party sources.
105
Settlement 1 looks very large on your Goad plan and Settlement 2 look small. Should the annotations be swapped?
Yes, I swapped these on my PP.
106
When would you consider repair to be uneconomic? Any case law?
Princess Street (Bond VT).
The LL would consider the market to determine if the repays would be worth undertaking. Would consider the length of the lease and how long the LL could amortise (spread the costs) of repairs.
107
Why did you not increase the tone?
Based on a basket of evidence, stood back and look, looked reasonable.
108
What is the thickness of a structural wall?
It depends, but roughly a brick thick.
109
Did you issue a withdrawal or decision notice?
We agreed with the zoning approach, but failed to agree the tone, so negotiated and then issued a decision notice.
110
What is the hierarchy of evidence?
New Letting
Lease Renewal
Rent Review
Independent Expert
Opinion
Arbitration/Court
Asking Rents
111
Why is a new letting considered to be the best evidence?
Because both parties can walk away
112
FORs, what governs them?
Schedule 9
113
What is the case law on tone?
Futures London v Stratford - tone can be established after a number of settlements and time passed.
114
Was there any masking? What is masking?
No.
Masking is columns and hard frontages (e.g. lack of windows or glazed frontage, typically found in bank properties).
115
The agent measured to 6m, why?
116
What is regulation 4?
The code of grounds.
Circumstances in which proposals can be made.
The CS was a compiled list entry.
117
What is the statutory deadline?
16 months, if the VOA has failed to respond to a CHG within this timeframe, then the proposer can go straight to appeal.
118
What is the statutory acknowledgement?
119
What is zoning? Is it always 6.1m?
The standard to measure a shop is 6.1m.
VOA adopt 6.1m.
120
Is zoning a measurement or valuing tool?
VOA Code of Measuring Practice
Zoning is VOAs measuring practice.
Rating approach to measure ships so they are measured to the same standard.
Measurement tool not a valuation tool.
121
Why did you not consider the subject rent at AVD?
VOA did not hold any records of any rental transactions of the property.
The agent provided the subject rent.
I considered comparable evidence to verify.
122
How did you adjust your compare evidence?
IRI.
Adjusted for the landlords responsibly for external repairs at 2.5%.
123
Comp 2 is much larger and comp 3 is closer to AVD,
Comparable 2 had a basement.
Comparable 3 was an upwards only RR.
124
Why did you not increase the tone?
Established a basket of evidence, settlement evidence, stood back and look, time seemed unreasonable.
125
What EPC was the building?
C
126
What are the EPC requirements? What are the penalties for not complying?
The Energy Efficiency (England and Wales) regulations 2015
From 1st April 2023.
Non-domestic - E or above
Less than 12 months - up to £5,000 or 10% RV
More than 3 months - up to £10,000 or 20% RV
127
How did you handle discrepancies in floor area?
We must provide a fair and reasonable valuation.
The incorrect floor area would have an impact on the valuation.
I detailed my measurements and plan and presented them to the agent. I explained my methodology and the reasons for the discrepancy between the two floor areas.
The agent agreed with my floor areas.
128
How did you know the wall was non structural?
Due diligence.
Hollow. Checked other aspects of the building, columns didn’t add up.
129
Comparable 3, did the upward only review take place?
No
130
Comparable 3, did the upward only review take place?
No
131
Did the agent serve a rebuttal on the IR?
Level 2- negotiation.
Verbal negotiation, followed up with written correspondence, build up rapport, go back over points with an email to recap what was agreed.
132
What does matrix value mean?
A basket of evidence of similar properties, in a similar locality, with similar characteristics.
133
What was the market like at the lease date?
Market had decreased by 22% based on subject rent.
The market for retail units around the subject rent ranged between £400-£600.
While there was initial stability, the market declined overall from 2015 to 2021, particularly during the pandemic, with landlords offering lower rents to attract tenants.
134
What do you mean by weighting?
Lamb v Go Outdoors Ltd
The usefulness of different types of evidence, having regard to relevant evidence of all types, if available, with a clear focus on the statutory definition of rateable value.
135
How would you identify a building of that age?
Cavity wall construction
Traditional masonry
Multi pitched tiled roof
136
What are the stages to the tone of the list?
Futures London v Stratford
O’Brien v Harwood
1. Start of the list
2. Assessments (CHG list)
3. Settlement and a pattern established
137
Is zoning a measurement?
Yes, it’s a form of measuring retail premises.
138
Is zoning different in different areas?
6.1M (20 ft)
Can also be 4.3M or 9.43M in London.
139
Any H&S issues? RICS regs?
RICS Surveying Safely:
- part 3: assessing hazards and risks
- part 6: visiting premises or sites
Health & Safety at Work Act 1974
- employers duty to ensure health, safety & welfare
- provision of information, training and supervision
- employee responsibility
- enforcement and penalties
140
What are the timeframe to appeal? What is the cost of appeal?
4 months
Small business - £150
Or £300 for others
141
What are the ADR options?
1. Mediation - independent mediator facilitates negotiations between the parties, non binding unless an agreement is reached
2. Arbitration - formal, referred to an independent arbitrator, who makes a binding decision
3. Adjudication - quick resolution, adjudicator reviews the evidence and makes a decision within a specific timeframe, usually 28 days
4. Expert determination - a neutral expert, with relevant industry knowledge is appointed, used in technical or valuation disputes
142
What scale was your location plan?
1:1250 - a common scale for most location plans, showing the site and nearby roads, buildings, and context within a larger neighbourhood or town
143
PII cover?
RICS mandates that all regulated firms and members maintain adequate PII coverage to protect against claims made by clients
Many PII policies cover ADR process, resolving complains through ADR can be more cost effective and may reduce the overall claims cost compared to court proceedings
144
How much did the rent go up for comp 3?
There was no increase.
145
Is an upwards only rent review common?
Yes, upwards only in most cases
If the RR has not been carried out, then this holds less weight, as it’s evidently above MR
146
Was the hereditament double glazed?
Single glazed, UPVc windows
147
If there was damp and cracking would you have any regard to that? Would it have impacted your valuation?
No, part of the assumption of rateable value is we assume is in reasonable repair.
If it was detrimental then I would have reflected the defect.
148
If the wall was structural, what would you have done? Do you know what the lower rate would have been?
149
Are there any differences between NIA and IPMS?
150
If there was a pillar in the shop would you include it in IPMS?
Yes
