Lands Tribunal confirms Business Centres are different

The Beattie Partnership have been successful in establishing that business centres are valued differently to offices and in the process have secured substantial savings for their Client.

The Appeal

The Beattie Partnership appealed against the rateable value of the business centre at Gatwick Airport on behalf of United Business Centres. As the Valuation Office would not accept the appeal the matter was referred to the Valuation Tribunal and ultimately the Lands Tribunal.

The Case

Whether a business centre is in the same mode and category of use as offices. The Beattie Partnership argued that as a Business Centre is a different use, the rent payable and the existing lease were better evidence of value than the tone of value for offices.

The Decision

The Lands Tribunal agreed with our view that a different “mode and category of occupation” should be considered and that the Business Centre should be valued on a separate basis.

Business Centres

Rateable Value Savings Summary

Value before

£292,500

Value after

£170,000

Saving

£122,500

Upper Tribunal (Lands Chamber)

UT Neutral citation number: [2012] UKUT 32 (LC) UTLC Case Number: RA/15/2009

RATING – valuation – airport business centre – lease containing restrictions on use to meet requirements of airport operator landlord – whether use as business centre in same category or mode of use as office use – held it was not – rent payable better evidence of value than tone of value for offices – appeal dismissed – RV confirmed at £170,000