93 Feet East, Brick Lane, E1

Original 2005 Rateable Value – £117,000
Agreed 2005 Rateable Value – £60,000

93 Feet East Building

Nightclubs and Music Venues are based upon the comparable rental method of valuation. The Valuation Office has difficulties in valuing licensed premises such as these due to a shortage of rental evidence. Where rents are payable, they are usually between connected parties and so are not at ‘arms-length’ and rarely reflect the market rental value.

The subject building is a converted brewery consisting of a number of buildings connected by interconnecting doors, corridors and stairs.

The VO had adopted a valuation based upon the rent on the building and they had not compared the subject property with other club valuations. After further investigation, it was discovered that the rent was in fact based upon a connected party transaction and also on very flexible terms and therefore the VO accepted that rent should be discounted as suitable evidence.

In order to reach the agreed valuation, both Bisset Moffatt Hill and the Valuation Officer had to look other clubs and venues, which were comparable. After finding a number of suitable comparable properties BMH managed to convince the VO to reduce the basis of valuation to reflect the converted nature of the building. An additional allowance was also secured to reflect the highly fragmented nature of the building.