Commonwealth Custodial Services Ltd v Valuer General [2008] NSWLEC 310

Commonwealth Custodial Services Ltd v Valuer General [2008] NSWLEC 310

The correct method for valuing heritage restricted land under s 14G is to assess the land as if the only permitted use is its current use with the existing improvements, to compare the net effective rental achievable for a hypothetical new, modern building as at the valuation date with the rental achievable for the actual heritage building at the same date, and to adjust the s 6A(1) land value by the rental differential percentage, adding agreed land improvements.

Jurisdiction
Australia
Judgment Date
28 November 2008
Procedural Posture
Merit Appeal / Judgment
Outcome
appeals allowed
Legal Topics
['heritage Restricted Land' 'land Valuation Methodology' 'valuation of Land Act 1916 S 14 G' 'planning Instruments' 'rental Differential Adjustment']
['valuation of Land' 'heritage Law'] ['heritage Restricted Land' 'land Valuation Methodology' 'valuation of Land Act 1916 S 14 G' 'planning Instruments' 'rental Differential Adjustment']

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Procedural Posture

Merit Appeal / Judgment

Legal Issues

  1. 1 ['How should the land value of heritage restricted land be determined under s 14G of the Valuation of Land Act 1916?' 'What is the proper method for adjusting land value based on the rental differential between a new modern building and a heritage building in its actual condition?' 'What impact do building design efficiency and land improvements have on valuation?']

Ratio Decidendi

The correct method for valuing heritage restricted land under s 14G is to assess the land as if the only permitted use is its current use with the existing improvements, to compare the net effective rental achievable for a hypothetical new, modern building as at the valuation date with the rental achievable for the actual heritage building at the same date, and to adjust the s 6A(1) land value by the rental differential percentage, adding agreed land improvements.

Court Disposition

appeals allowed

Orders

  • ['The appeals are allowed.' 'The land value in accordance with s 14G of the Valuation of Land Act 1916 is determined as $35,563,000 at 1 July 2005 and $36,260,000 at 1 July 2006.' 'The exhibits may be returned.']