LT 30 June 1992. The council purchased M`s freehold interest in a two storey industrial building linked to a two storey office building, for a town centre redevelopment. In 1986 the property had been leased to another party for a term of 13 years from May 1984. The initial rent was £7,500pa and it was subject to three yearly rent reviews. The first review was due on 1 May 1988 but did not take place. The council entered the premises on 13 October 1988 which is the valuation date. The parties agreed that the freehold interest was to be valued by reference to the capitalised rental value. They were not agreed as to the rental value or appropriate capitalisation rate. M valued the freehold interest at £194,000 equivalent to an annual rent of £15,515 and capitalised at 8%. The councils valuation was £87,500 based on an annual rent of £10,500 capitalised at 12%. M valued the annual rent higher claiming the property was mixed use and therefore more valuable. However the council claimed the