Challenging Business Rateable Value 'Lock Up Garage'

Majic

Could anyone advise where I could find out about how the rateable value is calculated. Our property is described as 'Warehouse and Premises'. When drilling down into how the rateable value is calculated, there is an element described as  'lock up garage' in the value. A figure has been assigned to that. Other similar premises have a different value for 'lock up garage'.

Would anyone know how the 'lock up garage' part is valued?

daveyjp

The value is based on similar properties in the area which set the 'tone' for the unit type.

Savvy_Sue

And I think size comes into it as well, so how 'similar' are these other premises in terms of size?

lincroft1710

Unless there are actual amounts per sq metre and sizes for each part of the premises which you can see, only the VOA will know the rating assessment has been arrived at.

Majic

Thank you. A comparable property just down the road is a 1/3 the size of ours. Their Lock-up garage value is exactly 1/2 ours (£300 v £150)

So are you saying the lock up garage value is calculated on size of premises? Remember the rateable value is multiplied by the size x the value assigned.

Property A 440m squaredx£300 (lock up garage value)

Property B 150m squared x £150 (lock up garage value)

So is there a relationship between size of property and Lock up garage value?

lincroft1710

A property's Rateable Value should reflect its rental value. The VOA will have obtained information on actual rents being paid and will adopt a price per sq m for the main part of the premises and ancillary accommodation could be the same price, more (e.g. an office in a warehouse or factory), or less (e.g.inferior construction or mezzanine storage).


I can only repeat that you should approach the VOA for an explanation of the LUG pricing. Property A could be too high or B could be too low or it could in fact be correct.

Majic

lincroft1710 said:

Unless there are actual amounts per sq metre and sizes for each part of the premises which you can see, only the VOA will know the rating assessment has been arrived at.

I can get the sizes from the Gov uk website. They are in square metres, That is what I quoted in above post

Majic

lincroft1710 said:

A property's Rateable Value should reflect its rental value. The VOA will have obtained information on actual rents being paid and will adopt a price per sq m for the main part of the premises and ancillary accommodation could be the same price, more (e.g. an office in a warehouse or factory), or less (e.g.inferior construction or mezzanine storage).


I can only repeat that you should approach the VOA for an explanation of the LUG pricing. Property A could be too high or B could be too low or it could in fact be correct.

Thanks again for your reply. I will give them a call see if they can explain

daveyjp

You can't just compare property descriptions.

A lock up of 150 sq m stood alone and used by a single person business for example spraying cars may well have a different value to a lock up of 450 sqm which is part of a much larger property.

The 150 will be compared to other single lock ups, the 450 will be valued against similar much larger properties.

Majic

daveyjp said:

You can't just compare property descriptions.

A lock up of 150 sq m stood alone and used by a single person business for example spraying cars may well have a different value to a lock up of 450 sqm which is part of a much larger property.

The 150 will be compared to other single lock ups, the 450 will be valued against similar much larger properties.

Thank you, that is precisely what I wanted to know. I telephoned the VOA and they couldn't answer the same question

Are you saying the number of employees in the business is a factor? Because in my case it is a one man company, in a very large warehouse, or is that irrelevant? 

daveyjp

Number of employees is irrelevant.