Appeal No. VA94/1/033
AN BINSE LUACHÁLA Maureen Gaynor APPELLANT RE: Nursing Home and Land at Lot No. 10C, Demesne,
R.D. Castlerea, E.D. Castlerea, Co. Roscommon B E F O R E JUDGMENT OF THE VALUATION TRIBUNAL By Notice of Appeal dated the 29th day of April, 1994 the appellant appeal against the determination of the Commissioner of Valuation in fixing a rateable valuation of £90 on the above described hereditament. The grounds of appeal as set out in the Notice of Appeal are that:- "the valuation is excessive, inequitable and bad in law." The Property: It was purchased as a going concern in 1988 and in 1992 an extension was added. The home is licensed for thirty patients. Accommodation includes hallway, reception room, sitting room, dining room, kitchen, four single, eleven double and one four bed units, bathrooms and toilets. Written Submissions: In the written submission Mr. Nerney described the property and said that it was purchased in 1987 as a going concern for £82,000. He said the price included £20,000 to £25,000 for furnishings and equipment. He said that there was planning approval for an extension and that additions completed in 1991 included separate dining room, kitchen, bathroom and seven bedrooms. Construction costs of these additions was £78,000. Mr. Nerney said that in his opinion the net annual value is £12,600 and a fair valuation is £63 estimated as follows:- Net Annual Value Mr. Nerney offered four comparisons in the county as follows:- 1) Lot 1E Corry West 2) Lot 19B Bellacagher 3) Lot 5L Ballyleague 4) Lot 14B1 Demesne A written submission was received on the 13th September, 1994 from Mr. Christopher Hicks, Appeal Valuer in the Valuation Office, on behalf of the respondent. Mr. Hicks described the property and set out his calculation of the rateable
valuation on three 6,315ft2 @ £2.85 per ft2 = N.A.V. £18,000 @ 0.5% = £90.00 OR Capital Value £180,000 @ 10% = N.A.V. £18,000 @ 0.5% = £90.00 OR 30 patients @ £3.00 each = £90.00 Mr. Hicks offered the same comparisons as Mr. Nerney and gave details of their valuations as follows:- 1) Fearna Nursing Home - Lot 14B1 Demesne 2) Mary O'Connor - Lot 19B Bellacogher 3) Mantua Nursing Home - Lot 1E Corry West Oral Hearing: Mr. Nerney said that the location of the subject premises, approximately
one mile from the centre of Castlebar, is disadvantageous as all of the
patients are either elderly or incapacitated. Mr. Nerney disagreed with the method of valuing such premises on a bed and patient basis. He contended that space in the subject is at a premium, conditions are somewhat cramped and that the floor area is 210 square feet per bed in comparison to Mantua Nursing Home which has 243 square feet per bed. Mr. Nerney further contended that there is a seasonal aspect to the business in that many patients stay in the nursing home for the winter months and return home in the summer. In addition, it is often the case that the standard charge in the area of £100 to £110 per week has to be lowered where individual patients can no longer afford the cost of long-term care. Mr. Hicks described the subject as a modern nursing home with spacious site and car parking facilities. He said that it was a considerable advantage in this type of business to have a single storey building such as the subject. There was some disagreement as to the purchase price and the cost of the later extension but it was agreed that in this case it was not a determining factor. Mr. Hicks said that the subject was operating at an economic level and its general facilities and accommodation capacity meant it was a good business proposition. Determination: Taking the above and all other relevant factors into consideration, the Tribunal is of the opinion that the correct rateable valuation for the subject premises is £75 and so determines.
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