[Cherie Muir]

Hi there

Interested to know if councils are using s.27(1) of the VG Act, to request separate values for dual occupancies. We have many cases of two identical dwellings on the same block (so not the old-style granny flat situation necessarily but genuinely two substantial separate houses). Subdivision may occur in future but for now the site is two houses owned by the same owner with one, or both, of the houses rented out.

“27 Where lands are to be separately valued
(1) Where several parcels of land, owned by the same person, are separately let to different persons, they shall be separately valued.”

Does your council monitor for this scenario and seek separation from the VG? And if so do you need to prove one of the two dwellings is rented? And if so, is there any requirement to prove the secondary dwelling remains rented (in order to retain the separated value)?

All insights appreciated. Thank you.

[Ian Clayton]

Hi Cherrie,

We at MWRC did go through and try to identify dual occ’s that weren’t separate some years ago. We asked the VG to split them, and some were & some weren’t.

The VG has a policy linked below on what should & shouldn’t be separately valued. Part 1.6 says the following is not to be separated :-
“dual occupancy where the planning scheme allows two occupancies on the one parcel of land
but does not allow subdivision or strata of that parcel”

If your planning scheme allows subdivision of a particular dual occ, it should be able to be split under the VG policy as long as the other physical separation requirements in the policy are met.

We used aerial imagery to show the physical separation & confirmed with the planners re subdivision before asking the VG to split them.

https://www.nsw.gov.au/sites/default/files/noindex/2024-05/Valuing_separate_parcels_policy.pdf

Cheers
Ian

[Cherie Muir]

Good guidance, many thanks Ian.

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