Practice Notes
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Approved for Publication 09.08.2004
COMMERCIAL PROPERTIES COMMITTEE
Practice Note 18
REVALUATION 2005
Valuation of Licensed Clubs
1.0 INTRODUCTION
This practice note deals with subjects which are entities in themselves and are registered as a Licensed Club.
The subjects will be identified by the presence of bar "facilities" and may also contain kitchen, toilet and perhaps some ancillary dual purpose accommodation as the day to day running may be carried out by club members. The more extensive subjects could contain a number of Bars, Committee Rooms, Boardroom, Offices, Function Hall, Games Room and possibly a Quiet Room.
Typical examples of these are listed below ;
-
British Legion Club
-
Football Supporters Club
-
Knights of St Columba and Hibernian Club
-
Masonic Lodge
-
Miners Welfare and Social Club
-
Political Constituency Club
-
Snooker Club
-
Sports Club (without ancillary sporting facility)
-
Workers Social Club
2.0 BASIS OF VALUATION
The valuation of Licensed Clubs is on the Comparative Basis. Valuers should use discretion in determining whether or not to make an addition to the value to reflect the commercial nature of any club.
3.0 RECOMMENDED RATES
In the absence of local evidence, the Recommended Rates as detailed below, which exclude car parking, should be applied to the Gross External Area of the property. Properties should be classified into one of the undernoted types and the final rate applied direct to NAV making suitable adjustment where necessary for particular features.
|
Type |
Class |
Rate per sq.m. to NAV |
|
1 |
Located in or close to high value areas within a town or a city, where there will be competing users. |
£50.00 - £60.00 |
|
2 |
Located in a secondary area within a town or a city with a moderate commercial value. |
£35.00 - £45.00 |
|
3 |
Located in an area of low commercial value. |
£25.00 - £30.00 |
4.0 ADJUSTMENTS
(a) Storey Allowance
|
Floor |
Reduction Factor |
|
Ground |
100% |
|
First |
90% |
|
All other floors |
At valuers' discretion. |
(b) Quantum
An allowance for quantum should be granted in accordance with the undernoted table:
|
Area |
Allowance |
|
600 sq.m. -650 sq.m. |
Nil - 5% |
|
651 sq.m. - 700 sq.m. |
5% - 10% |
|
701 sq.m.- 1,000sq.m |
10% - 12.5 % |
|
1,000 sq.m and over |
At valuers' discretion |
(c) Deductions for Age and Obsolescence
The recommended scale of deductions for Age and Obsolescence is noted below. However, subjects of this type have frequently been improved over the years and it may be appropriate to apply a restricted allowance for Age and Obsolescence.
|
Year |
Allowance |
Year |
Allowance |
Year |
Allowance |
Year |
Allowance |
|
2005 |
0.00% |
1991 |
9.00% |
1977 |
23.00% |
1963 |
37.00% |
|
2004 |
0.50% |
1990 |
10.00% |
1976 |
24.00% |
1962 |
38.00% |
|
2003 |
1.00% |
1989 |
11.00% |
1975 |
25.00% |
1961 |
39.00% |
|
2002 |
1.50% |
1988 |
12.00% |
1974 |
26.00% |
1960 |
40.00% |
|
2001 |
2.00% |
1987 |
13.00% |
1973 |
27.00% |
1959 |
41.00% |
|
2000 |
2.50% |
1986 |
14.00% |
1972 |
28.00% |
1958 |
42.00% |
|
1999 |
3.00% |
1985 |
15.00% |
1971 |
29.00% |
1957 |
43.00% |
|
1998 |
3.50% |
1984 |
16.00% |
1970 |
30.00% |
1956 |
44.00% |
|
1997 |
4.00% |
1983 |
17.00% |
1969 |
31.00% |
1955 |
45.00% |
|
1996 |
4.50% |
1982 |
18.00% |
1968 |
32.00% |
1954 |
46.00% |
|
1995 |
5.00% |
1981 |
19.00% |
1967 |
33.00% |
1953 |
47.00% |
|
1994 |
6.00% |
1980 |
20.00% |
1966 |
34.00% |
1952 |
48.00% |
|
1993 |
7.00% |
1979 |
21.00% |
1965 |
35.00% |
1951 |
49.00% |
|
1992 |
8.00% |
1978 |
22.00% |
1964 |
36.00% |
1950 |
50.00% |
Allowances in excess of 50% should not be granted unless the property is in its original state, with no evidence of improvement or refurbishment.
(d) Car Parking
Car Parks should be valued in line with local evidence.
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