Following Wasabi taking a unit in Kensington Arcade, fronting Kensington High Street, we reviewed the valuation to identify potential savings. The unit was valued on a zoned basis in line with other shop units along Kensington High Street.
Although the unit is similar in position, layout and size to numerous A1 units on the High Street, the unit was let with permission to be used for A3 purposes and is utilised as such by the occupier. Whilst no perfect comparables existed in the area, other A3 units nearby were valued on a substantially lower basis of valuation and we supplied evidence to support an assessment on this basis.
The Valuation Office contended that this should continue to be valued on a zoned basis as the tenant had the right to occupy as either an A1 or A3 unit. We were able to show that, in line with established case law, the valuation should reflect the actual use of the property in this instance and not a potential use. We were able to secure a 60% reduction of the rateable value from 397,500 to 157,500.
Please contact Alan Vickery for further information.