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 1st April 2023, is Schedule 12 (2)(1) of the Rates (NI) Order 1977.
This Practice Note refers to property classified as:
Class: Shops, Showrooms, Supermarkets
Sub Class: Shop
Drive-thru restaurants are defined as freestanding restaurants that are situated outside the traditional high street and which are suited, by their location and physical characteristics to occupation by the major fast food restaurant chains. Most are located within or close to retail parks and shopping centres or adjacent to major road networks.
Drive-thru restaurants have a drive-thru lane around the main building with order and collection windows. The aim is to allow customers to order and collect food while staying in their cars. They also have dedicated parking for customers who wish to avail of the seating area within the restaurant. Drive-thru restaurants require no specific planning approval over and above that required for a sit in restaurant.
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 retained as the approach for this type of hereditament.
In order to ensure a consistent Northern Ireland wide approach for this class of hereditament in regards to relativity, a schedule of indicative unit pricings has been established based on location.
First floor accommodation should be valued at 75% of the main space price.
External freezer and chiller pods should be valued at 40% of the main space price. Internal freezer and chiller pods are included within the main space with no addition.
Small pre-fabricated external stores that are typically found attached to the yard or corral wall of drive-thrus are deemed to be reflected within the main space price. Any structure that is more substantial or extensive than the norm should be valued on a case by case basis in line with properties in the same state and circumstance.
Rent and Lease Questionnaire
For this class of property RALQs were issued centrally by LPS and analysed by the Practice Note author.
For advice on any aspect of this Practice Note contact LPS on 0300 200 7801.