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

Section 65: ambulance stations

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

1. Scope

This section applies to all ambulance stations occupied by Ambulance Trusts(NHS)

2. List description and special category code

List Description: Ambulance Stations and Premises
SCAT Code 010

3. Responsible teams

This is a generalist class and responsibility for valuation will lie with the business unit. Queries of a complex nature arising from the valuation of individual properties should be referred to the NSU class facilitator via the class co-ordination team (CCT)

4. Co-ordination

The Emergency classes Co-ordination Team and the Civic Valuation Panel have responsibility for this class ensuring effective co-ordination across the business units. The team are responsible for the approach to and accuracy and consistency of ambulance station valuations. The team will deliver Practice Notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating list. Caseworkers have a responsibility to:

  • follow the advice given at all times
  • not depart from the guidance given on appeals or maintenance work, without approval from the co-ordination team
  • seek advice from the co-ordination team before starting any new work

Purpose built ambulance stations are a sui –generis class and consequently, as a general rule, only evidence relating to hereditaments in the mode or category of use is pertinent.

See:

  • Scottish and Newcastle (Retail) Ltd v Williams (VO) (RA 2000 P 119) and the subsequent Court of Appeal decision –Williams (VO) v Scottish and Newcastle Retail and Allied Domecq [RA 2001 P 41)
  • Re the appeal of Reeves (VO) RA 2007 P168
  • Dawkins (VO) v Royal Leamington Spa BC and Warwickshire County Council (1961) RVR 291.

See Rating Manual section 6 part 10 paragraph 9.2 and appendix 1 thereof for further guidance on mode and category of use.

However, in some circumstances it may be appropriate to have regard to rental evidence derived from other modes or categories of use such as general garaging/light industrial – see para 8.1 below and Re. the Appeal of Reeves (VO) [2007] RA/74/2005.

6. Survey requirements

6.1 Method of measurement

Ambulance stations may be valued by either the rentals method or by reference to the contractors basis. The basis of valuation will determine the method of measurement required. Net Internal Area (NIA) in respect of the rentals method and Gross Internal Area (GIA) in respect of the contractors basis. It will be necessary to ascertain the basis of valuation prior to inspection but in case of doubt sufficient measurement and survey information should be recorded to enable valuations to be carried out using either basis

6.2 Description

An ambulance station is essentially a building for the garaging of ambulances with attendant medical equipment, personal protective equipment, and other medical supplies. Stations will generally consistent of garage bays with ancillary crew room, bunk room/living quarters, station office, kitchen area, equipment store, sluice room - cleaning equipment, clean linen store, oxygen cylinder store, and shower facilities.

A few stations are equipped with a fuel pump to refuel ambulance vehicles and vehicle workshops. Larger stations may have a manager’s office or training rooms.

There will normally be external hard standing and possibly a communications mast.

From 2010 some Trusts have re-organised the provision of ambulance services by providing a hub and spoke system centred around “Make Ready stations” (MRS). Ambulances are based at the MRS where they are prepared for service being checked for roadworthiness, sanitised and fully equipped before being taken out by the ambulance crew to a spoke destination to await a call out. The “spokes” often referred to as “ambulance community response posts” maybe a smaller retained ambulance station or merely a parking space normally with access to sanitary facilities. This may have led to some existing ambulance stations being rendered redundant. An MRS may incorporate administrative functions and also house the Hazardous Area Response Team (HART) which is present in each Trust area.

In some instances, ambulance stations may be co-located with, or integral to, other emergency services facilities, such as fire stations.

6.3 Requirements

a) Unit of assessment

Where co-located with other emergency services it is possible that unit of assessment issues may arise, particularly where some facilities are shared. In these circumstances the principles referred to in Rating Manual section 3 part 1 should be adhered to. In cases of difficulty advice from the NSU specialist should be obtained.

b) Survey detail

The following information is required

i. A plan(CAD) or otherwise should be obtained where available and check dimensions made on site as necessary; otherwise a plan should be drawn up

ii. Method of construction-e.g. traditional brick and tile or steel framed

iii. Dimensions (where measured to NIA) and description of ancillary accommodation i.e. offices, stores, crew room, bunk room/living quarters, station office, kitchen area, equipment store, sluice room - cleaning equipment, clean linen store, oxygen cylinder store, shower facilities etc. Ambulance Bays - number and dimensions (where measured to NIA) including height, together with description of internal finish

iv. Where the contractors basis is to be the method of valuation only the GIA of individual building(s) is required but a note should be made of the proportion of the total area which is given over to office accommodation. Office accommodation in this context should be taken to include rooms used for support and admin purposes (including ancillary facilities like kitchens and toilets primarily used by admin staff) as distinct from space used for the garaging and maintenance of vehicles and accommodation for their crew

v. Description and detail of services to the hereditament e.g. heating, air conditioning, security systems, solar panels etc

vi. Number of car and ambulance parking spaces or/and parking area , the nature of the surface and the note of the extent of site landscaping

vii. The site area

viii. A description of the means of access to the highway and a note of the proximity to major trunk /arterial/ring roads

7. Survey capture

Survey information including plans are to be stored on EDRM. Where the ambulance station is to be valued using the contractors basis the GIA of the building(s) is to be entered onto the valuation spreadsheet held on the non-bulk server NBS. Where the ambulance station is to be valued using the rentals method then data, utilising appropriate BCI and sub location codes, should be captured within RSA.

8. Valuation approach

8.1 The rental method should be applied where there is (a) direct rental evidence or (b) rental evidence derived from the letting of other ambulance stations or (c)there is sufficient evidence from other localities to establish that the rents relating to ambulance stations are at a level commensurate with other modes or categories of use such as general garaging/light industrial. When considering rents relating to ambulance stations care should be taken to ensure that they can be suitably adjusted to accord with the rating hypothesis and are not otherwise of a nature which may prejudice their evidential weight – for example, lettings between connected parties, sale and leaseback, etc.

8.2 It is considered that in the main there will be insufficient available rental evidence to use the rentals method and as a consequence the contractors basis will be the most appropriate method of valuation. When applying the contractors basis the guidance given in Rating Manual section 4 part 3 and the practice note applicable to the Rating List for which the valuation is being undertaken is to be followed.

8.3 With the amalgamation of ambulance trusts and consequent operational changes surplus accommodation may result in some instances and thus superfluity may need to be considered. Superfluity can be taken into account but only after careful investigation of the root cause, and ensuring that space is genuinely redundant. Superfluity is not to be assumed and its presence and valuation effect it is for the ratepayer or agent to demonstrate. When considering the merits of a claim for superfluity a consideration of the features and characteristics of the modern equivalent, in those trust areas where such stations existed at the AVD, will be of assistance. In considering this matter no account should be taken of changes to the funding arrangements of the ratepayer body subsequent

9. Valuation support

Valuations on the rentals method are to be carried out on the Rating Support Application. Valuations undertaken using the contractors basis are to be carried out using the dedicated ambulance station spreadsheet held on the non-bulk server (NBS)

Practice note: 2017 - ambulance stations

1. Market appraisal

In an endeavour to achieve improved response times and in order to promote efficient use of resources, some ambulance trusts have in the past 5 years or so moved to a new concept of ambulance station provision based upon a “hub and spoke” arrangement. Under this arrangement overnight garaging, sanitisation and maintenance of ambulances is undertaken in larger, normally purpose built “make –ready “stations. These hub stations (sometimes referred to as super stations) usually accommodate administrative and maintenance staff as well as paramedics and other ambulance crews. Once “made ready” ambulances will depart from the hub and be stationed at either a small community “spoke” station (generally comprising just garaging or mess/toilet facilities) or alternatively to be parked up on public or private land to await call out. Ambulance trusts adopting this system of provision have often sold off a significant number of existing ambulance stations which no longer fulfil an operational need.

The hub stations may be provided by 3rd party developers under design and build agreements and will be subject to lease. Others will be freehold.

Not all trusts have gone down this route and in some areas the existing pattern of provision has continued.

In addition to the above a number of Trusts have provided purpose built facilities to house Hazardous Area Response Teams (HART).These facilities are normally manned 24 hours by specially trained staff on standby to be the first response in the event of a terrorist or other incident involving hazardous materials. HART facilities can be co–located with “Make Ready” hubs.

2. Changes from the 2010 practice note

Ambulance Stations are a sui generis class for rating purposes and as previously the choice of valuation method should be determined having established the facts on the ground. Where useful rental evidence exists on the subject property or within the class a rentals approach should be adopted. It is considered likely that this will be the case with some “Make-Ready Hub” stations. Alternatively, where it can be established that there is a relationship between rents paid for ambulance stations and other more generic classes (such as warehouses or offices) then that relationship can be used to value stations in adjoining areas where no direct evidence exists. However this approach should not be applied too far geographically from the source of the evidential base.

This practice note introduces a change to the approach to the application of the contractors basis as compared to that adopted for the 2010 List. It is the modern equivalent of a comparable sized ambulance station of a specification similar to that being assessed which is to be cost at stage 1 rather than (as in previous lists) the hereditament itself. Adjustments to take account of the deficiencies of the actual hereditament in terms of physical, functional and technical obsolescence are made at stage 2 of the valuation process. In addition there are changes to the level of costs, fees, values, allowances and rates associated with the contractors basis of valuation. In particular the allowance attributable to the presence of flat roofs has been significantly reduced to accord with current advice as to both the durability of modern coverings and market perception.

3. Ratepayer discussions

No discussions with the Ambulance Trusts or their representatives have taken place.

4. Valuation scheme

In circumstances where the contractors basis of valuation is deemed appropriate, it is to be applied in accordance with Rating Manual section 4 part 3 using the guidance below in relation to each stage of the valuation process.

The costs shown in this section are for ease of reference. In all cases where a cost guide code is shown it is this that which must be input into the NBS template, not the costs shown here. Where the cost guide code shows options, the costs shown in this practice note should be used to aid selection. Should the cost guide show different costs to those shown in a current version of this practice note, please refer to the CCT.

4.1 Stage 1 - estimated replacement cost

Building costs

With the exception of areas that are not used at the AVD and have no prospect of being used, the actual GIA of the station should be used to calculate the Estimated Replacement Cost (Stage 1) of the hereditament in accordance with Appendix A. Guidance in relation to the treatment of superfluity is given in the Rating Manual section relating to ambulance stations.

External works

The cost of external works is to be added in accordance with Appendix B

Location factors

Location factors should be applied in accordance with the VOA Cost Guide 2017

Professional fees and charges

Professional fees and charges are to be added for in accordance with the guidance given in the 2017 Cost Guide

4.2 Stage 2 – age and obsolescence

Adjustments for age and obsolescence should be made in accordance with the scales contained in Rating Manual section 4 part 3: The Contractor’s Basis of Valuation : R2017 Practice Note: Stage 2 - Age and Obsolescence Allowances.

  • In the case of buildings that have been significantly refurbished a lower allowance than that indicated solely by reference to the building’s age in the scale may be applicable, particularly where the works undertaken have enabled internal re-modelling to improve the functional aspects of the ambulance station.
  • In all cases the actual age of the building is to be recorded for the purposes of determining the appropriate age and obsolescence allowance. When refurbishment has taken place the allowance and not the buildings age should be over written
  • The age and obsolescence allowance applied to the buildings should also be applied to the external works (averaged as necessary). The spreadsheet in the Non Bulk server application will automatically do this.

4.3 Stage 3 - land value

The value of the developed land should be added in accordance with Appendix C

4.4 Stage 4 - decapitalisation rate

The higher statutory de-capitalisation rate should be applied to the Effective Capital Value (ERC) to arrive at an annual equivalent.

4.5 Stage 5 - end adjustments

Any advantage or disadvantage which might affect the value of the occupation of the hereditament as a whole should be reflected at this last stage. An adjustment under this head should not duplicate adjustments made elsewhere. Most buildings will not warrant further allowances at this stage and where allowances are appropriate, it is expected that they should not normally exceed 15%.

Specific end adjustment

Buildings with a flat roof are to receive an end allowance

a. £80m2 ARC of the footprint of the flat roof for buildings constructed up to and including 2004. b. £60m2 ARC of the footprint of the flat roof for buildings constructed after 2004.

Where a building has varying roof types a reasonable apportionment should be made to arrive at the allowance.

What is flat as opposed to a pitched roof will generally be self-evident. In instances where an allowance is sought for pitched roofing caseworkers should seek advice from the National Specialist Unit before proceeding.

Appendix 1

Stage 1: building costs

Size

(m2)

Type of Ambulance Station

 

 

 

“Make  Ready” Hub  or Heart

Standard Traditional

 

 

Cost Guide Reference

               £/m2

Up to 300

Seek individual advice from NSU

60F00B

1250

300-600

Seek individual advice from NSU

60F00C

1130

600-1000

Seek individual advice from NSU

60F00D

1060

>1000

Seek individual advice from NSU

60F00E

1130

Appendix 2

Stage 1: the addition for external works

 

Description

Addition for ext'l works –(banded by building size)

 

 

Up to 300m2

300-600m2

600-1000m2

>1000m2

1

Town centre or island site typically with 90% or greater building ratio, no more than a small yard or garden area, no external ambulance or car parking.

7.5%

6%

6%

5%

2

As 1 above, but typically with an 80% to 90% building ratio, very limited parking, external lighting, landscaping and some boundary fencing.

 

15%

10%

10%

7.5%

3

Site typically with 50%/75% building ratio, some landscaping around buildings, secure boundary fencing, ambulance parking with limited general parking, external lighting and landscaping

25%

20%

20%

15%

4

As 3 above, but typically with 35%/50% building ratio, landscaping around buildings, secure boundary fencing, external lighting, general parking within the hereditament which falls short of full requirements.

40%

30%

30%

20%

5

Site typically with about 25%/35% building ratio, landscaping around   buildings, secure boundary fencing, external lighting and adequate general parking within the hereditament for all staff and other users.

50%

40%

35%

25%

Notes

For the purposes of determining the building ratio soft areas (grass/landscaping) should be disregarded.

Where aerials, masts, solar panels and wind turbines are present, regard should be had to cost additions outlined in the relevant section of the VO 2017 cost guide.

Appendix 3

Stage 3 - land values

REGION

% ADDITION

South East

18.00

East Midlands

12.50

East

16.50

North East

  5.25

North West

13.00

South West

12.50

West Midlands

15.50

Yorkshire & Humberside

12.00

Central London North

18.00

Central London South

18.00

Greater London NW

55.00

Greater London SW

34.00

Greater London NE

37.00

Greater London SE

30.00

Cardiff

15.75

Mid & North Wales

  5.00

South Wales

  8.00

Practice note: 2010 - ambulance stations

1. Co-ordination arrangements

This is a Generalist Class. Responsibility for ensuring effective co-ordination lies with the NDR Business Unit under the direction of the CCT. For more information see Rating Manual - section 6 part 1: Practice Note 1: 2010.

The R2010 Special Category Code 010 should be used. As a Generalist Class the appropriate suffix letter should be ‘G’.

The Primary description code is MX (unclassified).

2. Valuation approach

Ambulance Stations are a sui generis class for rating purposes and the choice of valuation method should be determined having established the facts on the ground. Where useful rental evidence exists on the subject property or within the class a rentals approach should be adopted. However in many instances it is unlikely that such evidence will exist; if this is the case a Contractors Basis should be applied as outlined in the Rating Manual section 4 part 3. This should be informed by the costs and adjustments set out below.

2.1 Stage 1 – estimated replacement cost

With the exception of areas that are patently not used and have no prospect of being used, the actual GIA of the station should be used to calculate the Estimated Replacement Cost (Stage 1) of the hereditament in accordance with the table below. No contract size allowance should be applied to these costs:

With the recent amalgamation of ambulance trusts and consequent operational changes surplus accommodation may result in some instances and thus superfluity may need to be considered. Superfluity can be taken into account but only after careful investigation of the root cause, and ensuring that space is genuinely redundant. Superfluity is not to be assumed and its presence and valuation effect it is for the ratepayer or agent to demonstrate. When considering the merits of a claim for superfluity a consideration of the features and characteristics of the modern equivalent, in those trust areas where such stations existed at the AVD, will be of assistance. In considering this matter no account should be taken of changes to the funding arrangements of the ratepayer body subsequent to the antecedent valuation date.

Overall GIA 9m2)

Pre 1960 & post 1979 PRICE PSM (£) *Regard should be had to actual costs for Ambulance Stations built from 2006 onwards.

1960 – 1979 PRICE PSM (£)

250 & below

1119

784

300

1082

758

350

1045

731

375

1026

718

400

1019

714

500

1014

709

750

995

696

1000

964

675

1250

933

653

1500

901

631

1700

870

609

2000 & Over

808

565

For buildings constructed between 1960 and 1979, the costs reflect the presence of a Flat Roof, as well as other lower cost construction techniques. Where buildings have been constructed with a traditional pitched roof during this period an addition of £32/m2 should be made to the build cost.

A reduction of £288 psm of roof ‘foot print’ should be made to the value of pre 1960 and 1980-2004 buildings with flat felt roofs (£156 psm foot print for flat roofs with other coverings). No flat roof allowance should be made in the case of post 2004 buildings.

External works

The following additions should be made to the locationally adjusted ERC of all buildings:

Suggested % addition

Description

2.5%

Town centre or island site, with no more than a small yard sufficient only access/egress of the ambulances house there. No additional car parking

4% - 5%

Town centre or island site, typically with no more than a small yard or garden area, and either no car parking, or a very limited number of spaces within the hereditament.

5% - 8.5%

As above, but typically with very limited staff parking and landscaping, and with some boundary fencing.

8.5% - 14%

Site typically with some landscaping around buildings, secure boundary fencing, adequate staff parking, and very limited general parking within the hereditament.

14%- 17.5%

As above, but typically with landscaping around buildings, secure boundary fencing, adequate staff parking and general parking within the hereditament which falls short of full requirements.

17.5% - 20%

Site typically with extensive landscaping around buildings, secure boundary fencing and adequate parking within the hereditament for staff and all other users.

Where hereditaments do not fit exactly into one of the above categories it will be necessary for valuers to exercise further judgment. For example Stations with two or more floors may warrant a downward adjustment in the percentage addition as the building footprint would be less than the norm.

Where Aerials or Masts exist, regard should be had to cost additions outlined in the relevant section of the VO cost guide.

Location factors should be applied in respect of this class in accordance with the scales in the cost guide.

Professional fees and charges

Sums up to £500,000 13%

£500,000 to £2,000,000 11% (min fee £65,000)

Sums over £2,000,000 9% (min fee £220,000)

For the avoidance of doubt no additional premium should be made for complexity.

2.2 Stage 2 – age and obsolescence

The Build Costs supplied have been calculated with particular regard to the inferior quality of construction and materials that prevailed in the 1960’s and 1970’s.

The standard age-related allowances scale contained in the R2010 Cost Guide should also be applied in most circumstances. However, in the case of buildings that have been significantly refurbished a lower allowance may be applicable, particularly where the works undertaken have enabled internal re-modelling to improve the functional aspects of the Ambulance station.

When applying the standard age related scale the age to be applied is one year prior to the buildings’ completion.

The same age related allowance scale applied to the buildings’ should also be applied to the external works.

2.3 Stage 3 - land value

2.3.1 Developed land value

The value of the developed land, apportioned in respect of its non-domestic use shall be taken to be the following percentages of the aggregate of the ARC of all buildings and external works:

London Boroughs and M 25 Belt

15%

Remainder of South East England

8%

The North East, Merseyside and Wales (excluding the Cardiff/ Newport area)

2%

Remainder of England & Wales

5%

The “M 25 Belt” is for this purpose defined as the following Billing Authority areas:

Hertfordshire

Hertsmere, St Albans, Three Rivers, Watford, Dacorum, Broxbourne, St Alban’s, Welwyn/Hatfield

Buckinghamshire

Chiltern, South Bucks, Wycombe

"Berkshire"

Slough, Windsor and Maidenhead, Bracknell, Wokingham, Reading

Surrey (the whole county)

Surrey Heath, Runnymede, Spelthorne, Elmbridge, Woking, Guildford, Waverley, Tandridge, Reigate & Banstead, Mole Valley, Epsom & Ewell

Essex

Epping Forest, Thurrock, Brentwood, Basildon

Kent

Sevenoaks, Dartford

West Sussex

Crawley

The remainder of South East England is defined as the following counties excluding the Billing Authority areas forming part of the “M 25 Belt” as defined above:

Bedfordshire, Buckinghamshire, Berkshire, Oxfordshire, Hertfordshire, Essex, Kent, East and West Sussex, Hampshire, and the Bournemouth area of Dorset.

For the avoidance of doubt the Isle of Wight should be treated as outside “South East England” for the purpose of this practice note.

The North East is defined as including Northumberland, Tyne & Wear, County Durham, and Cleveland (Hartlepool, Stockton on Tees, Middlesbrough, Redcar and Cleveland).

2.4 Stage 4 - decapitalisation rate

The Adjusted Replacement Cost (ARC) of the hereditament shall be decapitalised to an annual equivalent by taking the prescribed rate. Ambulance stations are not healthcare hereditaments (as defined) and do not qualify for the lower prescribed rate.

2.5 Stage 5 – end adjustments

Any advantage or disadvantage, which might affect the value of the occupation of the hereditament as a whole should be reflected at this last stage. An adjustment under this head should not duplicate adjustments made elsewhere. Most buildings will not warrant further allowances at this stage and where allowances are appropriate, it is expected that they should not normally exceed 15%.

3. IT support

Where the Contractors basis is appropriate the standard generic Contractors Spreadsheet should be used, a master copy of which is located on the Non-Bulk server. No contract size allowance should be applied.

Practice note 1: 2005 - Ambulance stations

1. Co-ordination arrangements

This is a Group Class. Responsibility for ensuring effective co-ordination lies with the Group. For more information see Rating Manual - section 6 part 1: Practice Note 1 : 2005.

The R2005 Special Category Code 010 should be used. As a Group Class the appropriate suffix letter should be ‘G’

The Primary description code is MX (unclassified).

2. Description

2.1 Ambulance stations which are purpose built or adapted by significant structural alteration.

Ambulance Stations of this description are purpose-built, or are in buildings which have undergone substantial works of adaptation to fulfil the purpose of an Ambulance Station.

2.2 Ambulance stations for which, rebus sic stantibus, a rental market exists.

Ambulance Stations of this description are comparable with industrial or garage type accommodation.

Control Centres and Headquarter Buildings may also fall into this category and may be comparable with Offices or Call Centres, particularly where they are located on Business Parks.

3. Survey requirements

3.1 Basis of measurement

(i) In the case of hereditaments referred to in 2.1 above, the standard measurement to be adopted for is Gross Internal Area of the buildings (see VOA Code of Measuring Practice for Rating Purposes).

(ii) In the case of hereditaments referred to in 2.2 above, the standard measurement to be adopted for is Net Internal Area of the buildings (see VOA Code of Measuring Practice for Rating Purposes).

In cases where the valuation approach is not clearly identified before referencing, measurements should be taken on both the GIA and NIA standards.

The number of Ambulance Bays must be recorded, as must the presence of any aerials or masts that exist.

Notes should also be made of any substantial areas which are manifestly not in use as at the date of inspection. Enquiries should be made of the occupier as to the length of time the under utilisation has existed and whether there are any future plans to bring back into use.

3.2 External development Works

Note should be made on inspection of the extent of any parking areas (including the number of car spaces) and landscaping . The site area should be recorded and comment made on file regarding whether the developed site is adequate or under or over sized for the building it serves.

4. Approach to valuation

Ambulance stations are in all essentials premises where vehicles are stationed and thus may be said to be in the same mode and category of occupation as distribution warehouses, which in turn are within the same mode or category of occupation as warehouses in general, although of course with good vehicular access. Use of the rental/comparative basis depends upon the availability of rental evidence for comparable property, the probability of the subject hereditament getting planning consent for general warehouse use, and the suitability of the hereditament within the restrictions of the rebus sic stantibus rule, for such uses. Where the rental method is inappropriate for the reasons outlined above, the Contractor’s Basis must be used.

5. Valuation on contractors basis

Rating Manual section 6 part 3: Section 600: Para 4.3.2 sets out the general approach to be adopted in circumstances where the Contractors Basis applies. For consistency, however. valuers should note the points below when valuing this class of property.

5.1 Stage 1 – estimated replacement cost

With the exception of areas that are patently not used and have no prospect of being used, the GIA of the station and the actual area of car parking/ landscaping should be used to calculate the Estimated Replacement Cost (Stage 1) of the building in accordance with the table below:

OVERALL GIA

Pre 1960 & Post 1979

1960 - 1979

(m2)

PRICE PSM (£)

PRICE PSM (£)

100

900.00

630.00

150

900.00

630.00

200

900.00

630.00

250

900.00

630.00

300

870.00

609.00

350

840.00

588.00

375

825.00

577.50

400

825.00

577.50

450

820.00

574.00

500

815.00

570.50

750

800.00

560.00

1000

775.00

542.50

1250

750.00

525.00

1500

725.00

507.50

1750

700.00

490.00

2000

650.00

455.00

2250

650.00

455.00

2500

650.00

455.00

2750

650.00

455.00

3000

650.00

455.00

Flat roof allowance

For buildings constructed between 1960 and 1979, the costs reflect the presence of a Flat Roof, as well as other lower cost construction techniques. Where buildings have been constructed with a traditional pitched roof during this period an addition of £25/m2 should be made to the build cost.

A reduction of £230 psm of roof ‘foot print’ should be made to the value of pre 1960 and post 1980 buildings with flat felt roofs (£125 psm foot print for flat roofs with other coverings).

External works

The following additions should be made to the locationally adjusted ERC of all buildings:

Suggested % addition

Description

4%-5%

Town centre or island site, typically with no more than a small yard or garden area, and either no car parking, or a very limited number of spaces within the hereditament.

5%-8.5%

As above, but typically with very limited staff parking and landscaping, and with some boundary fencing.

8.5%-14%

Site typically with some landscaping around buildings, secure boundary fencing, adequate staff parking, and very limited general parking within the hereditament.

14%-17.5%

As above, but typically with landscaping around buildings, secure boundary fencing, adequate staff parking and general parking within the hereditament which falls short of full requirements.

17.5%-20%

Site typically with extensive landscaping around buildings, secure boundary fencing and adequate parking within the hereditament for staff and all other users.

Where hereditaments do not fit exactly into one of the above categories it will be necessary for valuers to exercise further judgment.

Aerials and masts

Where Aerials or Masts exist, regard should be had to cost additions outlined in the relevant section of the VO cost guide.

Contract size adjustments should be made, and location factors applied in respect of this class in accordance with the scales in the cost guide.

Fees

General guidance on the amount to be added for fees is provided in the R2005 Cost Guide.

For Ambulance Stations with an ECV of upto £500,000 an addition of 13% should be made, whilst for those with an ECV of £500,000 and above an addition of 11% should be made.

5.2 Stage 2 – age and obsolescence

The Build Costs supplied have been calculated with particular regard to the inferior quality of construction and materials that prevailed in the 1960’s and 1970’s.

The standard age-related allowances scale contained in the R2005 Cost Guide should also be applied in most circumstances. However, in the case of buildings that have been significantly refurbished a lower allowance may be applicable, particularly where the works undertaken have enabled internal re-modelling to improve the functional aspects of the Ambulance station.

When applying the standard age related scale the age to be applied is one year prior to the buildings completion.

The same age related allowance scale applied to the buildings should also be applied to the external works.

5.3 Stage 3 - land value

5.3.1 Developed land value

The value of the developed land, apportioned in respect of its non-domestic use shall be taken to be the following percentages of the aggregate of the ARC of all buildings and external works:

Heathrow -M25 belt

25.0%

South East England (outside the M25)

14.5%

Remainder of England & Wales

8.5%

The “Heathrow-M25 belt” is for this purpose defined as the following Billing Authority areas:

Hertfordshire

Hertsmere, St Albans, Three Rivers, Watford, Dacorum

Buckinghamshire

Chiltern, South Bucks, Wycombe

"Berkshire"

Slough, Windsor and Maidenhead, Bracknell, Wokingham, Reading

Surrey

Surrey Heath, Runnymede, Spellthorne, Elmbridge, Woking, Guildford, Waverley

Oxfordshire

Oxford

South East England is defined as the following counties excluding the Billing Authority areas forming part of the “Heathrow - M25 belt” and excluding portions of other Billing Authority areas what lie within the M25:

Bedfordshire, Buckinghamshire, Berkshire, Oxfordshire, Hertfordshire, Essex, Kent, East and West Sussex, Surrey, Hampshire, and the Bournemouth area of Dorset.

For the avoidance of doubt the Isle of Wight should be treated as outside “South East England” for the purpose of this practice note.

Treatment of developed land value within the M25 is outside the scope of this agreement.

5.3.1 Undeveloped land value

Undeveloped land will consist of amenity land other than that for the immediate landscaping of buildings. Land which is in excess of that required for amenity use should be ignored. The areas of car parks and roadways are not to be treated as undeveloped land.

The value of undeveloped land should be found by using a price per hectare derived from evidence of transactions in other amenity or sports field land. The value adopted should reflect fencing and drainage. The typical range of values for undeveloped land is £10,000 to £30,000 per hectare.

5.4 Stage 4 - Decapitalisation rate

The Adjusted Replacement Cost (ARC) of the hereditament shall be decapitalised to an annual equivalent by taking the prescribed rate. Ambulance stations are not healthcare hereditaments (as defined) and do not qualify for the lower prescribed rate.

5.5 Stage 5 – End adjustments

Any advantage or disadvantage which might affect the value of the occupation of the hereditament as a whole should be reflected at this last stage. An adjustment under this head should not duplicate adjustments made elsewhere. Most buildings will not warrant further allowances at this stage and where allowances are appropriate, it is expected that they should not normally exceed 15%.

6. I.T. support

Where the Contractors basis is appropriate the standard generic Contractors Spreadsheet should be used. A master copy of which is located in the R-Drive. All valuations will be downloaded into the new non-bulk server see IA’s 100903 & 140503 for further details.

Practice note: 2005 - Ambulance stations

1. Co-ordination arrangements

This is a Group Class. Responsibility for ensuring effective co-ordination lies with the Group. For more information see Rating Manual - section 6 part 1: Practice Note 1: 2005.

The R2005 Special Category Code 010 should be used. As a Group Class the appropriate suffix letter should be ‘G’

The Primary description code is MX (unclassified).

2. Description

2.1 Ambulance stations which are purpose built or adapted by significant structural alteration

Ambulance Stations of this description are purpose-built, or are in buildings which have undergone substantial works of adaptation to fulfil the purpose of an Ambulance Station.

2.2 Ambulance stations for which, rebus sic stantibus, a rental market exists

Ambulance Stations of this description are comparable with industrial or garage type accommodation.

Control Centres and Headquarter Buildings may also fall into this category and may be comparable with Offices or Call Centres, particularly where they are located on Business Parks.

3. Survey requirements

3.1 Basis of measurement

(i) In the case of hereditaments referred to in 2.1 above, the standard measurement to be adopted for is Gross Internal Area of the buildings (see VOA Code of Measuring Practice for Rating Purposes).

(ii) In the case of hereditaments referred to in 2.2 above, the standard measurement to be adopted for is Net Internal Area of the buildings (see VOA Code of Measuring Practice for Rating Purposes).

In cases where the valuation approach is not clearly identified before referencing, measurements should be taken on both the GIA and NIA standards.

The number of Ambulance Bays must be recorded, as must the presence of any aerials or masts that exist.

Notes should also be made of any substantial areas which are manifestly not in use as at the date of inspection. Enquiries should be made of the occupier as to the length of time the under utilisation has existed and whether there are any future plans to bring back into use.

3.2 External development works

Note should be made on inspection of the extent of any parking areas (including the number of car spaces) and landscaping . The site area should be recorded and comment made on file regarding whether the developed site is adequate or under or over sized for the building it serves.

4. Approach to valuation

Ambulance stations are in all essentials premises where vehicles are stationed and thus may be said to be in the same mode and category of occupation as distribution warehouses, which in turn are within the same mode or category of occupation as warehouses in general, although of course with good vehicular access. Use of the rental/comparative basis depends upon the availability of rental evidence for comparable property, the probability of the subject hereditament getting planning consent for general warehouse use, and the suitability of the hereditament within the restrictions of the rebus sic stantibus rule, for such uses. Where the rental method is inappropriate for the reasons outlined above, the Contractor’s Basis must be used.

5. Valuation on contractors basis

Rating Manual section 6 part 3: Section 600: Para 4.3.2 sets out the general approach to be adopted in circumstances where the Contractors Basis applies. For consistency, however. valuers should note the points below when valuing this class of property.

5.1 Stage 1 – estimated replacement cost

With the exception of areas that are patently not used and have no prospect of being used, the GIA of the station and the actual area of car parking/ landscaping should be used to calculate the Estimated Replacement Cost (Stage 1) of the building in accordance with the table below:

OVERALL GIA

Pre 1960 & Post 1979

1960 - 1979

(m2)

PRICE PSM (£)

PRICE PSM (£)

100

900.00

630.00

150

900.00

630.00

200

900.00

630.00

250

900.00

630.00

300

870.00

609.00

350

840.00

588.00

375

825.00

577.50

400

825.00

577.50

450

820.00

574.00

500

815.00

570.50

750

800.00

560.00

1000

775.00

542.50

1250

750.00

525.00

1500

725.00

507.50

1750

700.00

490.00

2000

650.00

455.00

2250

650.00

455.00

2500

650.00

455.00

2750

650.00

455.00

3000

650.00

455.00

Flat roof allowance

For buildings constructed between 1960 and 1979, the costs reflect the presence of a Flat Roof, as well as other lower cost construction techniques. Where buildings have been constructed with a traditional pitched roof during this period an addition of £25/m2 should be made to the build cost.

A reduction of £230 psm of roof ‘foot print’ should be made to the value of pre 1960 and post 1980 buildings with flat felt roofs (£125 psm foot print for flat roofs with other coverings).

External works

The following additions should be made to the locationally adjusted ERC of all buildings:

Suggested % addition

Description

4%-5%

Town centre or island site, typically with no more than a small yard or garden area, and either no car parking, or a very limited number of spaces within the hereditament.

5%-8.5%

As above, but typically with very limited staff parking and landscaping, and with some boundary fencing.

8.5%-14%

Site typically with some landscaping around buildings, secure boundary fencing, adequate staff parking, and very limited general parking within the hereditament.

14%-17.5%

As above, but typically with landscaping around buildings, secure boundary fencing, adequate staff parking and general parking within the hereditament which falls short of full requirements.

17.5%-20%

Site typically with extensive landscaping around buildings, secure boundary fencing and adequate parking within the hereditament for staff and all other users.

Where hereditaments do not fit exactly into one of the above categories it will be necessary for valuers to exercise further judgment.

Aerials and masts

Where Aerials or Masts exist, regard should be had to cost additions outlined in the relevant section of the VO cost guide.

Contract size and location

Contract size adjustments should not be made, and location factors applied in respect of this class in accordance with the scales in the cost guide.

Fees

General guidance on the amount to be added for fees is provided in the R2005 Cost Guide.

For Ambulance Stations with an ECV of upto £500,000 an addition of 13% should be made, whilst for those with an ECV of £500,000 and above an addition of 11% should be made.

5.2 Stage 2 – age and obsolescence

The Build Costs supplied have been calculated with particular regard to the inferior quality of construction and materials that prevailed in the 1960’s and 1970’s.

The standard age-related allowances scale contained in the R2005 Cost Guide should also be applied in most circumstances. However, in the case of buildings that have been significantly refurbished a lower allowance may be applicable, particularly where the works undertaken have enabled internal re-modelling to improve the functional aspects of the Ambulance station.

When applying the standard age related scale the age to be applied is one year prior to the buildings completion.

The same age related allowance scale applied to the buildings should also be applied to the external works.

5.3 Stage 3 - land value

5.3.1 Developed land value

The value of the developed land, apportioned in respect of its non-domestic use shall be taken to be the following percentages of the aggregate of the ARC of all buildings and external works:

Heathrow -M25 belt

25.0%

South East England (outside the M25)

14.5%

Remainder of England & Wales

8.5%

The “Heathrow-M25 belt” is for this purpose defined as the following billing authority areas:

Hertfordshire

Hertsmere, St Albans, Three Rivers, Watford, Dacorum

Buckinghamshire

Chiltern, South Bucks, Wycombe

"Berkshire"

Slough, Windsor and Maidenhead, Bracknell, Wokingham, Reading

Surrey

Surrey Heath, Runnymede, Spellthorne, Elmbridge, Woking, Guildford, Waverley

Oxfordshire

Oxford

South East England is defined as the following counties excluding the Billing Authority areas forming part of the “Heathrow - M25 belt” and excluding portions of other Billing Authority areas which lie within the M25:

  • Bedfordshire
  • Buckinghamshire
  • Berkshire
  • Oxfordshire
  • Hertfordshire
  • Essex
  • Kent
  • East and West Sussex
  • Surrey
  • Hampshire
  • Bournemouth area of Dorset

For the avoidance of doubt the Isle of Wight should be treated as outside “South East England” for the purpose of this practice note.

Treatment of developed land value within the M25 is outside the scope of this agreement.

5.3.1 undeveloped land value

Undeveloped land will consist of amenity land other than that for the immediate landscaping of buildings. Land which is in excess of that required for amenity use should be ignored. The areas of car parks and roadways are not to be treated as undeveloped land.

The value of undeveloped land should be found by using a price per hectare derived from evidence of transactions in other amenity or sports field land. The value adopted should reflect fencing and drainage. The typical range of values for undeveloped land is £10,000 to £30,000 per hectare.

5.4 Stage 4 - decapitalisation rate

The Adjusted Replacement Cost (ARC) of the hereditament shall be decapitalised to an annual equivalent by taking the prescribed rate. Ambulance stations are not healthcare hereditaments (as defined) and do not qualify for the lower prescribed rate.

5.5 Stage 5 – end adjustments

Any advantage or disadvantage which might affect the value of the occupation of the hereditament as a whole should be reflected at this last stage. An adjustment under this head should not duplicate adjustments made elsewhere. Most buildings will not warrant further allowances at this stage and where allowances are appropriate, it is expected that they should not normally exceed 15%.

6. I.T. support

Where the Contractors basis is appropriate the standard generic Contractors Spreadsheet should be used.