Case study:

Catering Company | London

KEY
FACTS

8 MONTHS 
ACHIEVED IN

£32,685 
SAVINGS

Hospitality
PROPERTY TYPE

The Client

The client, located at 105 Brantwood Road, London, is a catering company specialising in providing high-quality, bespoke catering services to businesses, events, and private functions across London.

They are known for their commitment to delivering exceptional food with a focus on local, sustainable ingredients. The client’s premises are vital to their operations, providing both production space for managing their food delivery services.

The Problem

Prior to our involvement, the property had a rateable value (RV) of £159,000, which was based on outdated rental data that did not reflect the current market conditions. The client had entered into a license agreement for the premises at a much lower rent of £115,000, effective from 15/05/2022, but this was not factored into the original RV assessment.

The inflated RV did not align with the actual rent the client was paying and was therefore not a true reflection of the property’s value in the current market. This discrepancy prompted the need for a challenge to address the overvaluation and ensure a fairer assessment.

The Solution

RVA Surveyors submitted a ‘Challenge’ letter requesting a reduction in the tone, the addition of an access allowance, and a permanent disadvantage allowance based on the client’s specific circumstances. Along with the letter, we provided strong supporting evidence, including the client’s rent license, to demonstrate that the previous RV was too high. The initial submission with the Valuation Office Agency (VOA) caseworker led to the proposal of a new scheme, which included comparable properties in the local area with similar characteristics, resulting in a lower rate per square metre.

While the requested allowances were not applied, further submission resulted in the adoption of a scheme change, which reduced the tone from £90.00 per m² to £75.00 per m². This adjustment led to a revised RV of £124,000.

The Outcome

Following the successful challenge, the client’s rateable value was reduced from £159,000 to £133,000, effective from 01/04/2023. This reduction better aligned the property’s valuation with the actual rental agreement and market conditions, providing our client with a more accurate and fair assessment of their premises.

The revised RV resulted in a lower financial liability for the client, helping to ensure that their property costs were in line with the true value of the space.

Savings achieved: £32,685 

Surveyor comment

“By excluding non-usable areas like storage and corridors, we secured a fairer valuation, reducing the client’s rateable value significantly.”