ASSIGNMENT CASE STUDY 1
For Case Study 1, you have been asked by a client called Toppus Fashions Ltd as
occupiers of 4 Royal Parade, Sinniton and who are keen to establish what their likely
Rateable Value will be from April 1, 2023. All draft rating valuations given are those
effective from April 1, 2023.
For parts (a) – (c) of this case study, you should ignore any effect on value as a
result of the opening of The Three Queens Shopping Centre.
(a) Provide a valuation for rating purposes of the entire hereditament known as 4
Royal Parade (to be entered in the Rating List as Shop and Premises). You
should comment on the appropriate evidence you have used to arrive at the
Rateable Value. (35 marks)
(b) Toppus Fashions are currently discussing taking an assignment of the lease
on 44 Constitution Road. The intention would be to knock through and open
up the ground floor only between 44 Constitution Road and 4 Royal Parade.
On the basis that a single assessment is appropriate, provide a rating
valuation of the entire co-joined unit effective from April 1, 2023. (25 marks)
(c) Toppus Fashions is interested in sub-letting the first and second floors of 44
Constitution Road to the Columbo Coffee Chain trading as ‘Triple-C’. Provide
a rating valuation of the possible Triple C unit assuming that the entire first
floor is put over to cafe use along with 50% of the second floor. The
remainder of the second-floor space will be used for storage, preparation and
cloakrooms (toilets). (20 marks)
(d) Assuming that The Three Queens Shopping Centre opens on September 1,
2022, and using your earlier valuation under part (b), examine how the impact
of the Centre could affect the town and provide a revised valuation on the
basis that the Zone A rents are being confirmed at £2,200 per square metre.
You should also discuss what methods and research you would employ to
gauge any impact on the assessment. (20 marks)
ASSIGNMENT CASE STUDY 2
For Assignment Case Study 2, you have been instructed to act for Trilogy
Investments Ltd who own and lease out premises known as 39 – 43 Constitution
Road. There are four different tenants (see Annexe 3).
The ground floor has been let to Lloyds TSB Bank. The premises have a net 31.26
metre solid stone frontage on to Constitution Road and a stone return frontage with
pillars on to Kingdom Street (extending the full length of the return).
You may assume that rents have stabilised in the town over the past 18 months but
grew prior to this.
(a) For each of the four tenants, provide both an opinion of Market Rent (MR)
should each of the demised premises be vacant and the Estimated Rental
Value (ERV) today based on the next lease event. (25 marks)
(b) Value the landlord’s freehold interest. (30 marks)
(c) Trilogy Investments Ltd has asked that you prepare a report for secured
lending purposes. Outline the main sections of your report to accord with
RICS Valuation Global Standards (2022) and what you would include
under each section. (15 marks)
(d) Value the leasehold interest of both Lloyds TSB Bank (ground floor) and
Colour Solutions Ltd (first floor). You should provide an appraisal of the
strengths and weaknesses of your valuation methodology. (30 marks)
ASSIGNMENT CASE STUDY 3
Billy Butchers Ltd own and occupy 10 – 12 Kingdom Street (the unit has been
opened up at ground floor level and has single self-contained flats over both units).
The turnover in the last financial year (2021) ending 31 December 2021 was
£112,000 pa and net profit £13,500 (estimated at 25% below fair maintainable trade
due to the impact of Covid-19). This had dropped further by around 35% over the
previous year’s figures (2020).
The property was built in 1955 of brick/block elevations under a pitched tiled roof
with metal casement windows. Each of the flats has been let out on an assured
tenancy basis to expire January 1, 2023 at £1,350 per calendar month. It is
estimated that each flat is worth around £ 345,000 if sold on a long lease.
The local authority, Sinniton District Council, has asked for your advice in connection
with a proposal to improve this part of the town. The Council wish to compulsorily
acquire 10 Kingdom Street only from Billy Butchers to improve access to 10A
Kingdom Street which is currently a run-down toilet block with a very narrow access
between 8 and 10 Kingdom Street.
(a) Provide the Council with a fully costed and annotated compulsory purchase
claim on the basis that Billy Butchers retain the shop unit with flat over at 12-
Kingdom Street and the Council undertake any construction works to the
retained building. (45 marks)
(b) Appraise the position as to whether Billy Butchers could insist on a total
extinguishment claim. (20 marks)
(c) Using your own figures and assumptions, provide a draft rating valuation
under the 2023 Rating List of the public toilets at 10A Kingdom Street. (15
marks)
(d) The Council is also keen to gain some additional advice from you as a
separate matter on the potential liability to local taxation assessment on the
Anglo-Saxon burial chambers at The Three Queens Shopping Centre.
Discuss how you would approach the rating assessment with reference to
decided case law. (20 marks)
