Practice Notes
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Approved for Publication 04.06.2004
MISCELLANEOUS PROPERTIES COMMITTEE
Practice Note 19
REVALUATION 2005
Valuation of Non-League Football Grounds etc
1.0 INTRODUCTION
This practice note applies to the valuation of junior football grounds and any similar non-league football grounds. It may also be used as a guide in relation to other similar subjects, such as rugby grounds.
2.0 BASIS OF VALUATION
The ground, clubhouse, car parking and ancillary buildings should be valued on the comparative principle. Where appropriate, additions for site improvements such as fencing, terracing and enclosures should be valued using the contractor's basis of valuation.
3.0 METHOD OF VALUATION
3.1 Site Value
If no local evidence is available a rate of £350 to £500 NAV per hectare to Net Annual Value should be applied for a ground of 0.5 ha to 2 ha. These rates reflect the provision of basic drainage and a level grass playing surface of average quality.
3.2 Site Improvements
It is envisaged that the rate applied to the site, derived from local rental evidence, will be for a developed site and will already reflect the provision of a grass surface drainage etc. Accordingly no further addition for the cost of site preparation, cultivation and seeding of grass pitches will normally be required.
Where appropriate, additions for site improvements should be made by the application of the contractor's basis of valuation, in accordance with the recommendations of the Basic Principles Committee Practice Note 2.
Costs of site improvements are detailed in the Miscellaneous Properties Committee Practice Note 9, which deals with the valuation of sports grounds in general. Where appropriate, the costs detailed in that practice note should be adopted to arrive at the estimated replacement cost. These costs are derived from The National Playing Fields Association Cost Guide and need no adjustment for contract size, professional fees or location.
3.2.1 Fencing, Terracing, Enclosures, etc
Ancillary items such as fencing, terracing and enclosures should be valued by the application of the contractor's basis of valuation as detailed in Basic Principles Committee Practice Note 2.
The Estimated Replacement Cost of such items should be determined either by updating historic costs or by using costs obtained from the Rating Cost Guide or the recommendations contained in Miscellaneous Properties Committee Practice Note 9, which deals with the valuation of sports grounds in general.
3.2.2 Age and Obsolescence
The Estimated Replacement Cost of site improvements and ancillary items should be adjusted to reflect age related obsolescence and general condition in accordance with the recommendations of Basic Principles Committee Practice Note 2. A notional date should be adopted where appropriate.
3.2.3 Decapitalisation Rate
The appropriate decapitalisation rate should be applied to the effective capital value of the items valued on the contractor's basis.
3.2.4 End Allowance to Items Valued on the Contractor's Basis
In some instances, the application of the contractor's basis of valuation to site improvements and ancillary items may produce results which are high in relation to the other elements of the valuation. Where this occurs further adjustment may be required at the "stand back and look" stage of the valuation and an allowance of up to 50% may be applied to those elements valued on the contractor's basis.
3.3 Clubhouses and Pavilions
Where there is a clubhouse or pavilion present, this should be valued in accordance with Miscellaneous Properties Committee Practice Note 5.
3.4 Ancillary Buildings
The valuation of grounds man's huts, stores and other ancillary buildings should be derived from local evidence, having regard to location and, where appropriate, extent of use.
3.5 Car Parking
Car parking should be added at an appropriate rate in accordance with local evidence. It is recommended that any addition for car parking should not normally exceed 10% of the value of the subjects.
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END ADJUSTMENTS
It is accepted that for this category of subject, by virtue of poor location, historic over provision, or otherwise, there may be circumstances in which the membership or extent of use of the club is so low that it would affect the rental offer made by the club.
While each case should be judged on its own merits, an allowance of up to 50% may be applied to reflect such factors.
The allowance should be applied to the total value of the subjects, including the clubhouse, provided that the clubhouse is in keeping with and appropriate to the sporting facilities. Care should be exercised to ensure that an allowance for such factors has not already been made in the valuation of the clubhouse. It should also be borne in mind that, as the chosen site value might already reflect location and the typical occupier, further adjustment to that element of the valuation may not be appropriate.
The allowance should not apply to the clubhouse in circumstances where the principal use of the clubhouse is other than as an adjunct to the sporting facilities - eg where the clubhouse is predominantly a licensed social club.
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COMPARISON WITH LEAGUE FOOTBALL GROUNDS
Resultant values should be checked against the values proposed for Football League grounds, and further adjustment of valuations may be required to ensure that the subjects bear comparison.
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