Business Rates review by VOA?
3 years ago | 3 comments
Does re-valuing risk wasting money?
12:02 AM, 30th August 2023, 3 years ago
5
Hello, Our block of flats is owned by the leaseholders, except one which has a long lease pre-dating self-enfranchisement. According to this lease, ground rent should be reviewed every 21 years, which falls in December.
This requires an expensive valuation of the whole block.
Given the recent change in law, and government’s apparent intention to scrap ground rents entirely, would it be more sensible to ignore this provision?
Thank you,
Richard
Tags:
block of flats, Leasehold Law Reforms UK, owner of leasehold flats, revaluating leasehold flats
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Member Since January 2015 - Comments: 1435 - Articles: 1
11:12 AM, 30th August 2023, About 3 years ago
As all the other flats are joint freeholders, and presumably pay no ground rent, I wouldn’t think it necessary to revalue and keep this sole ground rent paying flat at the same payment as is now.
When you do a rebuilding valuation for insurance purposes could get the surveyor to give a current building value then, which they should do anyway
Member Since June 2023 - Comments: 65
12:57 PM, 30th August 2023, About 3 years ago
How long has the sole remaining lease to run? At it’s expiry, the flat could be offered as share of freehold. If lease renewal/ extension is sought before then, why not offer freehold, with the price paid in instalments in lieu of ground rent.
Member Since January 2020 - Comments: 559
2:03 PM, 30th August 2023, About 3 years ago
You cannot unilaterally disregard lease provisions.
Without seeing the actual lease, I wonder why the whole building needs to be revalued and not just the flat that wants reviewing.
I don’t think that ground rents in exisiting leases are to be scrapped, as far as I’ve read it’s only in new leases.
Member Since January 2020 - Comments: 559
2:06 PM, 30th August 2023, About 3 years ago
Reply to the comment left by Judith Wordsworth at 30/08/2023 – 11:12
Comment by a valuer – there’s no connection between a reinstatement valuation and a capital valuation. My firm doesn’t do reinstatement valuations, we outsource them to a firm that doesn’t do capital valuations. Any valuer doing both would want to be paid for both of them due to two lots of liability.
Member Since August 2023 - Comments: 1
11:15 AM, 31st August 2023, About 3 years ago
As a valuer of ground rents those that relate to the entire building we usually just do to the flat value, when only looking at one flat, as we assume the flat has the same ratio value as to the building but it really does depend on the exact wording of the lease.