Dawn Bunyan (Valuation Officer) v Acenden Limited

Dawn Bunyan (Valuation Officer) v Acenden Limited

Tenant's Category B fit-out works generally increase the rateable value of the office building, as the market would pay a premium for fitted-out space. The statutory decapitalisation rate is not mandatory unless the contractor's basis of valuation is applied in full to all or part of the hereditament. The appropriate rateable value is determined by reference to market evidence and a realistic hypothetical negotiation, resulting in a rateable value of £1 million.

Parties
Appellant: Dawn Bunyan; Respondent: Acenden Limited
Jurisdiction
England and Wales
Judgment Date
25 January 2023
Procedural Posture
Appeal / Upper Tribunal Decision
Outcome
Appeal allowed
Legal Topics
Rateable Value, Tenant Fit Out, Statutory Decapitalisation Rate, Contractor's Basis of Valuation
Rating Law Valuation Rateable Value Tenant Fit Out Statutory Decapitalisation Rate Contractor's Basis of Valuation

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Parties

Dawn Bunyan

Appellant

Acenden Limited

Respondent

Procedural Posture

Appeal / Upper Tribunal Decision

Legal Issues

  1. 1 Whether tenant's Category B fit-out increases rateable value of office building
  2. 2 Whether statutory decapitalisation rate must be used when analysing rental value of fit-out

Ratio Decidendi

Tenant's Category B fit-out works generally increase the rateable value of the office building, as the market would pay a premium for fitted-out space. The statutory decapitalisation rate is not mandatory unless the contractor's basis of valuation is applied in full to all or part of the hereditament. The appropriate rateable value is determined by reference to market evidence and a realistic hypothetical negotiation, resulting in a rateable value of £1 million.

Court Disposition

Appeal allowed

Orders

  • Rateable value of Ascot House determined at £1 million with effect from 1 April 2017