CLIENT INDUSTRY
-
Banking
SERVICES PROVIDED
- Removal of rates during fit-out
- Reassessment management
- Nearby building works allowance
LOCATION
- Westminster
SIZE
- 22,000 sq ft
CHALLENGE
Following the acquisition of new offices, business rates were payable despite the demise being handed over in CAT A condition and subject to the tenants CAT B fit out works.
SOLUTION
Upon instruction we compiled a challenge to delete the existing business rates valuation as a result of the space not being capable of occupation. In addition, the client was only planning to fit out part of the demise due to changing space requirements.
RESULTS
Following the submission of a challenge, the Valuation Office Agency accepted our representations that the offices should not be liable for business rates during the fit-out works. We then managed the reassessment of only the fitted out element of the offices into the rating list in the process agreeing reduced floor areas; including an allowance for the disturbance caused by nearby building works. On conclusion of matters we were able to report to the client savings at c. £1.5m.
COMMENT
William Illingworth, Director in the rating team at Savills said “This was a particularly pleasing result as we were able to move quickly following instruction and successfully agree the removal of the offices from business rates within a month. This meant the client was not exposed to rates during a period that they were not able to occupy the space. The management of the reassessment with the VOA and Westminster meant that we were able to achieve an accurate valuation and avoid further length challenges to the valuation”.