VRCC LIMITED v MRS AMANDA FRENCH
Decision date: 17 December 2013
Neutral citation: [2013] UKUT 627 (LC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned the rateable value of a converted warehouse at 1 Bramston Way fitted out as a veterinary treatment centre with a Linac radiotherapy vault. The Tribunal held the hereditament must be valued in its fitted state as a veterinary facility on a net internal area basis and accepted the VO’s adopted basic rate and adjustments, resulting in an assessed RV of £74,000 from 1 April 2010. Warehouse comparables in the unit’s original industrial use were given limited weight.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
Where an extensive specialist fit-out has fundamentally altered a hereditament, the rebus sic stantibus principle requires valuation according to the property’s physical state and its mode/category of occupation on the material day; evidence of rents/assessments for adjoining units in their original use may be of limited relevance where the conversion works are not minor and the property cannot sensibly be returned to that original use.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal noted that expert evidence obtained under a conditional fee arrangement may be perceived as at risk of unconscious bias and attract less weight, and that experts should disclose such arrangements in writing in line with RICS guidance. It also commented that a net internal area basis may be appropriate where a property comprises discrete functional areas making a gross internal area basis unsuitable for rating purposes.