Some properties can fall into disrepair because it is not economically viable to undertake remedial works. This can be where a large, outdated property becomes obsolete due to change in demand which results in long periods of vacancy while development or demolition options are considered. Often, the VOA will adopt the assumption of reasonable repair which means business rates are still payable on these properties.
A large industrial unit in Liskeard had been vacant since 2007 due to substantial disrepair, which was not economically viable to remedy, and the property continued to incur rates liability despite being incapable of occupation. We were of the opinion our client should not be paying business rates whilst unable to occupy the property.
We submitted a ‘Check’ document which provided evidence of the extent of the disrepair at the property and the cost of works that would be required to put the property back into a reasonable state of ‘repair’ in order to be capable of beneficial occupation. This highlighted that the costs of works were uneconomic in relation to the rental value that would be realised were the property to be put into repair, with the payback period not reflecting a sufficient return on investment, thus rendering it economically unviable.
The outcome was the successful removal of the property from the Rating List over the life of the 2017 List, resulting in a business rates rebate and an overall saving of circa £18,500 for our client.
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