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Read & Partners v Sykes (VO) [2012] RA 345

DATE: 21 May 2012

The Valuation Tribunal for England determined the assessment of large purpose built modern doctors’ surgeries by the contractor’s basis because (I) the rental method was rejected since the only rents available were based on independent valuations undertaken by District Valuer Services which produced a figure described as current market rent (CMR) which was the basis of the rents used in the leases of such surgeries, in development appraisal and in the reimbursement of doctors’ accommodation expenses, but these were not open market rents, and without checks provided by open market rents it could not be said that the leases resulted in an amount that the property might reasonably be expected to let from year to year in accordance with the definition of rateable value, (ii) the figure reached in any receipts and expenditure valuation would be so artificial and so remote from any type of occupation normally valued under such an approach as to make it quite meaningless, and (iii) the contractor’s basis valuation method had a clear justification, it was long established and widely understood by valuers, and used for a range of public sector buildings including Primary Care Trust healthcare accommodation for which a tone of value was established, and the appeal hereditaments were modern and excellent information for use in the contractor’s basis valuation method was available.