Rating Manual section 4: valuation methods Part 1: practice note 1 — 2017 rental adjustment

Fees

15.1 It is essential to remember that cost does not necessarily equate to value. 15.2 In Edma Jewellers (case 1) the Lands Tribunal said “On the one hand it would appear reasonable to assume that, if a tenant is prepared to pay for the benefits of occupation of the hereditament partly by way of rent and partly by way of capital expenditure, he would also be prepared to pay the same amounts calculated in annual terms”. “On the other hand, it is also possible to say that not all expenditure by the tenant necessarily improves the value of the landlord’s hereditament in the market, vacant and to let”. Furthermore, “it becomes necessary to examine closely the facts of each case, in order to appreciate the value of the expenditure to the actual tenant, and this must involve his thinking and expectations at the time when he undertakes to carry out his expenditure. It seems to me therefore that all expenditure must be looked at on its merits”. 15.3 In amortising the cost of carrying out a wide