PROPERTY VALUES.

Evening Star, Issue 22365, 15 June 1936, Page 10

PROPERTY VALUES.

TO THE EDITOR. Sir, —I wonder if yon would he able to enlighten me as to the selling value of house properties on which the_ rateable value is fixed at £SO and £52 respectively. Should a house be let for 27s 6d weekly, upon what basis is that worked, and what would be the rateable value of same? Thanking you in anticipation.—l am, etc., Ignoramus*, i

[ln regard to the first question, if the owners arc living in the houses they should be worth about £1,200 and £1,250 respectively. In these cases the rateable value is determined on 5 per cent, of the capitalised value, less about 10 per cent, for maintenance and repairs to the property. On the other hand, if tile owners of the houses referred to are recent buyers, the houses having been let a year ago at, say, 25s a week, the houses would be valued for rating purposes at about £SO. In this case the city valuation department arrives at the rateable value by deducting a little over 20 per cent, from the rental value. If the rateable value has been determined from the rental value, the selling value of the properties lias to be based upon their present-day replacement value, less a fair allowance for wear and tear. It is quite possible for an owner to pay, say, £7OO for a property, and yet his rateable value, based upon the rental value, may be £SO; but that sum would not represent 5 per cent, of its capitalised value. On a house let at 27s 6d a week the rateable value would he about £52. The latter figure is determined by deducting 25 per cent, from the rental value, plus a Small allowance (which is generally made hy the valuation department.—Ed., E.S.]