We were instructed by Closegate Hotel Developments (Durham) Ltd to advise on minimising its rate liability on the Radisson BLU Hotel in Durham city centre.
Detailed receipts and expenditure valuation carried out
We conducted a detailed survey of the premises and held protracted negotiations with the Valuation Office Agency.
Key arguments for this valuation centered around use of accounts from first year trade figures in 2009 and making appropriate adjustments with which to value as at 2008 as per the Rating hypothesis.
Little rental evidence in this type of property class
Chris Wilkinson, rating surveyor in our North East office, said: “Rateable Value in its simplest form is the estimated value with which a property will let between a hypothetical Landlord and hypothetical Tenant in an arms length transaction as at 1st April 2008.
“In this type of property class there is very little in the way of rental evidence. Therefore the correct basis with which to value for Rating is the receipts and expenditure method which gives a greater emphasis to income generated as at 2008.”
Receipts and expenditure valuation adopted
Using a variety of arguments with selected gross turnover and accommodation receipts as well as giving due consideration to quantity and quality of hotel accommodation, we were able to successfully argue on all fronts ensuring good savings and a most satisfactory conclusion for our client.
Reduction in rateable value of £100,000
We successfully agreed a reduction in the Rateable Value from £605,000 to £560,000 ensuring savings for Radisson Hotel over the 2010 list of over £100,000