Hangars (Non Domestic Valuation practice notes)

These Practice Notes were developed for the purpose of revaluing non domestic property in Northern Ireland as part of Reval2023. They were produced primarily as guidance for LPS Valuers to ensure, amongst other things, consistency of approach and practice in rating valuations.

Scope

The scope of this Practice Note is solely to ensure a consistent valuation approach for this Property Class/ Sub Class/ Type for Non-Domestic Revaluation 2023 and subsequent entry in the new Valuation List which becomes effective on 1 April 2023.

The basis of valuation for new entries in the Valuation List, and Rating Revision cases after 1 April 2023, is Schedule 12 (2)(1) of the Rates (NI) Order 1977.

Description

This Practice Note refers to property classified as:

Class: Commercial Unclassified
Sub Class: Airfield
Type: Hangar

Hangars generally allow for the repair, maintenance, manufacture, assembly or storage of aircraft. They also provide protection from weather.

Hangars have the characteristic of industrial or warehouse properties. However additional considerations may be required including the provision of additional height or door width dependent upon the type of aircraft the hangar is anticipated to store.

This Practice Note does not apply to hangars which are occupied as part of an airport or airfield. These should be valued in line with the methodologies adopted for Airports & Airfields, a separate Practice Note.

Legislative background

Schedule 12 Part 1 Paragraph 1 of the Rates (NI) Order 1977 applies.

“Subject to the provisions of this Schedule, for the purposes of this Order the net annual value of a hereditament shall be the rent for which, one year with another, the hereditament might, in its actual state, be reasonably expected to let from year to year, the probable average annual costs of repairs, insurance and other expenses (if any) necessary to maintain the hereditament in its actual state, and all rates, taxes or public charges (if any), being paid by the tenant”.

Valuation approach for 2023

The Comparative method of valuation is to be retained as the approach for this type of hereditament, with a greater acknowledgement and examination of the distinct characteristics of this property type in comparison to warehouses.

Rent and lease questionnaire

For this class of property Rent and Lease Questionnaires (RALQs) were not issued.

Contacts

For advice on any aspect of this Practice Note contact LPS on 0300 200 7801.