Rating Manual section 6 part 3: valuation of all property classes

Section 1: AA and RAC hereditaments

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Co-ordination

For the purposes of the 1990 Rating List, AA and RAC Hereditaments have been classified as a Group C Class and Regional Co-ordination procedures will apply.

Special category code 001C should be used.

2. Description

2.1 The following categories of AA and RAC Hereditaments are covered in this section:-

(i) Stalk telephones

(ii) Telephone boxes

(iii) Service centres

(iv) Relay centres

(v) Shops and offices

2.2 Stalk telephones

Stalk telephones comprise a metal pole concreted in to the ground which supports a metal cabinet housing the telephone equipment (see Appendix 5:1:1).

2.3 Telephone boxes

Although they are being phased out a few of the old “sentry type “ AA and RAC telephone boxes still remain (see Appendix 5:1:1).

2.4 Service centres

The vast majority of service centres operated by the AA and RAC are portable buildings similar to builders site huts and are usually stationed in car parks or in road side lay-bys. The modern ones may be connected to full services including power, water, drainage and telephone whereas some of the older units may have power and telephone only. Sizes vary but are generally between 15 m2 and 25m2 measured externally (see Appendix 5:1:1).

2.5 Relay centres

The majority of relay centres are situated on industrial estates and are similar to other vehicle workshops and garages.

2.6 Shops and offices

The AA and RAC also occupy a number of retail units and offices usually located within major towns and cities.

3. Survey Requirements

3.1 Stalk telephones

Because these are regarded as de minimis no survey details are required.

3.2 Telephone boxes

Measurements are not required as “sentry type” telephone boxes are usually of a standard size. However, the referencer needs to make a careful note of the telephone’s location which should normally include the box number and the road number.

3.3 Service centres

Service centres should be measured externally. A special note should also be made of all the services that are connected.

3.4 Relay centres

As these centres are similar to vehicle workshops/garages they should be measured to GIA as per the VO Code of Measuring Practice.

3.5 Shops and offices

In accordance with the VO Code both shops and offices should be measured to NIA. Regard should also be had to any specific referencing requirements contained in Rating Manual section 6 part 3: section 920 for shops and Rating Manual section 6 part 3: section 730 for offices.

4. Basis of valuation

4.1 Discussions took place between Chief Valuers Office and agents acting on behalf of the AA and RAC with a view to agreeing for the 1990 Rating List a basis for the valuation of typical AA and RAC stalk telephones, telephone boxes and service centres.

Details of the agreement reached with the agents are set out below:-

4.2 Stalk telephones

It has been agreed that stalk telephones in the occupation of the motoring organisations will continue to be treated as de-minimis. This follows the approach adopted for the 1973 Valuation List.

Emergency telephones on motorways are similar to AA and RAC stalk telephones and, for the avoidance of doubt, these should also be treated as de-minimis.

4.3 Telephone boxes

It has been agreed that these should be valued at £50 RV.

4.4 Service centres

The valuation approach taken in central negotiations was to adopt an average site rental based on actual rents passing then to add to this the amortised cost of the rateable structure. This scheme clearly involves some averaging between the better units and the poorer units and the agreement reached will entail both sides “taking the rough with the smooth”.

The agreement reached with the agents is in respect of the typical service centres as outlined above and should apply to units of up to 30m2 external area, regardless of the quality or level of services. Except for service centres at motorway service areas, airports and ferry terminals, it has been agreed that an assessment of £950 rateable value should be adopted in all cases except where there is a conflict with the local tone.

Service centres at airports and ferry terminals are outside the terms of the agreement and it is anticipated that there will be sufficient comparable evidence on which to base their assessments.

In cases where the service centre is materially different to that outlined above, or is of a permanent solid construction, VOs should value in accordance with their local tone. In cases where there is no direct evidence or in other cases of difficulties VOs should refer the case to CEO (R2) via Technical Advisor.

4.5 Service centres at motorway service areas

Let outs, including AA and RAC service centres at motorway service areas, are to be dealt with under the National Co-ordination Scheme by the Group A Valuer.

No agreement has been possible in respect of service centres at motorway service areas but the value should be based on the site rental plus the amortised cost of the rateable structure.

4.6 Relay centres

The majority of relay centres are situated on industrial estates and are similar to other vehicle workshops and garages. Where there is no direct rental evidence VOs should have regard to the general level of values prevailing in the locality for this type of hereditament.

4.7 Shops and offices

These should be valued on the traditional rental basis in accordance with the local tone of the list.

Appendix 1: AA and RAC hereditaments

Service centre and relay centre