Betterment charges on lease-purpose changes were substantially increased yesterday.
Betterment is charged according to the change in the value of a lease from the old use to the new, for example when someone wants to build a block of units where there was a single house.
Under the old rules, when calculating the “”before value”, some consideration could be given to its potential for redevelopment.
Under the change announced yesterday by the Minister for Environment, Land and Environment, Bill Wood, no consideration will be allowed for redevelopment potential when assessing the “”before value”. He said that when areas were flagged for redevelopment the “”before value” rose almost to the same as the “”after value”, thus resulting in very little betterment charge.
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