Supreme Court overturns decision to value building at just £1

The Supreme Court has overturned a decision that set the rateable value of  a building in Blackpool at just £1.

Mexford House in the North Shore area of the town was purpose-built in 1971 and was used as government offices.

When buildings in the town were given their ratings value in 2010 the building was standing empty.

The rateable value initially entered by the valuation officer with effect from 2010 was £490,000.

The valuation reflected the view that there were other office buildings in the area of similar age and quality, occupied by public sector tenants at rent of the same order.

However, the Valuation Tribunal for England reduced the rateable value of Mexford House to £1.

The valuation officer appealed to the Upper Tribunal, before which the matter was dealt with by way of a full-rehearing.

In cross-examination, the valuation officer accepted that as at the time of the valuation he could not identify any person in the real world who would bid for the tenancy of Mexford House.

In light of the comparable properties he gave a final assessment of the rateable value as £370,000.

The Court of Appeal later allowed an appeal from property firm Telereal Trillium’s appeal restored the Valuation Tribunal for England’s assessment of the value at £1, on the basis that there was no demand in the market for occupation of Mexford House.

As a result the valuation officer appealed to the Supreme Court, which has ruled in his favour.