Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

HD APC OCT 21 > Case Study > Flashcards

Case Study Flashcards

1
Q

What was the construction of the subject property?

A
  • concrete frame
  • solid wall
  • Flemish bond
  • period building
  • pitched roof
  • parapet wall
  • single glazed, timber frame frontage
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Was the property in disrepair of have any defects?

A

Shop front was in average conditions. Could have done with repainting. Other than that, no issues.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is holding over? What section of the landlord and tenant act covers this?

A

Lease has passed contractual expiry but the tenant has the right to remain in the property under the act. Specifically section 24.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What did the tenants fit out include?

A

Predominantly white with counter, sales racks, changing rooms, hard wood floors and cladding on the walls.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How did you undertake you conflict of interest check?

A

Via the internal work system. This requires us to input the business name and directors of the business. It then analyses if there are any party, personal or locational conflicts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What was your fee structure for the instruction?

A

Fixed fee for reporting and a % fee based on the new rent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What was stated in your terms of engagement?

A
  • conflict check
  • fee
  • disbursements / costs
  • complaints procedure
  • timeframes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What governs you measurement in NIA?

A

Code of measurement practice, 6th, 2015

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is ITZA?

A

A valuation technique that allows for comparison between properties of different sizes. Principe is the front of the sale space is most valuable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How do you calculate ITZA?

A

6.1m zones which half in value as they go back.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Why would the units in your clients parade provide the best evidence?

A

There was no difference in tone, they were similar in size and configuration and we had full information.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Why was none of them having recent lease events an issue?

A

Dated evidence. Not a fair reflection of the current market. CAT B evidence in hierarchy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Why does an agreed deal have limited use?

A

Until the deal completes, it’s liable to change.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

In considering the leases potential restrictive lease terms, what did you look at?

A
  • use
  • alienation
  • break
  • RR provision
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How did you determine the difference in tone was due to footfall?

A

Area inspection, walk to and from the station, own survey in 15 minute increments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

You mention two main considerations in selecting your data. We’re these your only considerations?

A

No - I did consider other factors like use, size, configuration etc. But these two factors were the most influential.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Why had the vacant unit in your client’s portfolio been on the market for some time?

A

It had been under offer to two separate parties which had subsequently fallen away.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

If the letting at the vacant unit in your client’s parade completed, why would this be the best evidence?

A

Hierarchy of evidence under comparable evidence in real estate valuation 2020.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Why did the hierarchy of evidence under comparable evidence in real estate valuation 2019 lead you to your decision?

A

The evidence on my client’s pitch was the bottom of Cat A and then Cat B evidence. The opposite pitch evidence was higher Cat A evidence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Why did you select 75 and 79 High Street?

A

Two most recent transactions on the pitch, directly opposite the property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Why didn’t you consider 77 High Street, an open market letting which completed the same time as 79 High Street?

A

Seemed an anomaly in the ZA rate and I hadn’t been able to verify the info with an agent. Based off lease and old measurements we had on record. The unit also never opened.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What was your return frontage adjustment to 79? Why this amount?

A

5% which was based off an old proforma for the unit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Why did you base your ERV off £160ZA?

A

To manage the client’s expectations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

How did you establish a lack of ancillary space adjustment?

A

Old adjustments previously applied to the property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

How did you establish your frontage to depth adjustment?

A

Perfect shop model. A calculation that determines the % adjustment necessary that would account for the floor space being evenly spread through its respective zones.

26
Q

How did the client’s objectives not fully align?

A

Rent maximisation and cost minimisation

Rent maximisation and maintaining relationship

27
Q

Why would not starting a timeline to a court determination be a benefit to the client?

A

It was a benefit in terms of the cost minimisation objective, as court determinations can be expensive.

28
Q

What governs interim rent? What is its purpose?

A

S24A LTA 1954 (II). It is to account for the period from the contractual expiry of the lease and the commencement of the new lease. Generally will be same as new rent unless a significant market change or change in lease terms.

29
Q

Why when considering informal negotiations was it important to have the fall back to retain control of the time frames?

A

Otherwise the renewal could drag, delaying when the client could claim and uplift and potentially resulting in the client receiving less money.

30
Q

When were your client’s next lease events on the pitch?

A

One late 2020 and three in 2021

31
Q

Why was a fixed timeline to the end of the lease a benefit in serving a S25?

A

It would force the tenant to engage in the renewal and put pressure on them to complete.

32
Q

Why did you advise you thought going to court in the S25 was unlikely?

A

The tenant had often expressed their aversion to incurring costs. They had not even appointed a surveyor at this point to avoid costs. I therefore thought it unlikely they would be willing to let the renewal proceed to court.

33
Q

What were the scale of the tenant’s arrears at instruction?

A

£16k

34
Q

What are the grounds for opposition?

A

Rent, Repair, Other, Alternative, Uneconomic sub, Owner Occupation, Development

35
Q

Which grounds require compensation?

A

E, F, G

36
Q

What does it mean when you say ground B is discretionary?

A

The obligation is on the landlord to prove to the court why we should not grant the tenant a new lease. It is not guaranteed to be a success.

37
Q

Why did you advise the client sought legal advice on the hostile S25?

A

To advise in more detail on the use of ground B and its discretionary nature.

38
Q

Why did you disregard your adjustments for your quoting rent to the tenant?

A

Starting high with the aim of achieving the highest possible rent for my client

39
Q

What protection did the Coronavirus Act 2020 provide to the tenant?

A

S82 of the Coronavirus Act meant forfeiture for the non-payment of rent was not an option.

40
Q

When does the moratorium on rent come to an end?

A

Currently 25 March 2022

41
Q

Why was the market opaque after the start of the pandemic?

A

Knew demand and rents had fallen but no deals going through to show it.

42
Q

What is the valuation date of a lease renewal?

A

3 months and 21 days after court determination.

43
Q

Why would the rolling valuation date mean a lower rent?

A

New rent would likely emerge which would show a decrease. This would impact the rent.

44
Q

What ITZA did you ERV reflect in the end?

A

£145 per sq. ft.

45
Q

Why was an extension of a time a recommendation?

A

It revealed the tenant’s intention and would help to guarantee income security for my client.

46
Q

What was the rent you eventually agreed?

A

£50,000 pa

47
Q

What ITZA did this reflect?

A

£109 ZA

48
Q

Why did you settle the rent at £50k pa?

A

It was based off the first letting on first post COVID letting on the high street at our end, no 92 which achieved £110 ZA.

49
Q

What was the payment plan for the rent arrears?

A

Full payment of pre-COVID outstanding arrears on completion. Then £2,000 PCM instalments to pay off COVID arrears. Wrote off half of COVID arrears owed as rent free for new lease.

50
Q

Was there any rent free included as part of your new lease?

A

No - It was agreed that no rent free would be offered as half of the arrears under the old lease were written off.

51
Q

Why is your ERV below the tone of your client’s pitch?

A

Deals agreed in 2016 were when SJWHS was at its peak. Also case that I was managing client expectations. Also highlighted to client £155 ZA at 130 was agreed and not set.

52
Q

Talk me through your conflict of interest check?

A

We use an online system called 2020 to take our conflict checks. It scans for conflicts related to the location, property, job type and client. We input the post code, company number, registered address etc. This produces an Excel spread sheet of any conflicts flagged in red. There were no conflicts in this instance.

53
Q

You mentioned you were retained by this client. Did you issue terms of engagement?

A

Yes - Still issued with fee basis etc regardless of historic connection.

54
Q

How did you determine the ITZAs of your comparable evidence?

A

Requested proforma’s from other agents on the pitch. If not available, relied on historic proformas.

55
Q

What did you think your chances were of using a hostile S25 for the non-payment of rent?

A

Low - Hence why it was not my recommendation to the client, however I did think it was an option they should know about for their own consideration.

56
Q

What is the maximum extension of time you can agree?

A

12 months

57
Q

If you wanted to change a term in a protected lease, how would you go about doing this?

A

Outline in O’May v City of London Real Property Co. Change must be reasonable, reflected in the rent and not affect security of tenure.

58
Q

Did you apply for interim rent in this case?

A

No - As the tenant was struggling and as we came to an arrangement on the rent arrears, we did not feel the need to progress to interim rent.

59
Q

If you did apply for interim rent, what would be the relevant date in your case?

A

September 2020

60
Q

What case law relates to the use of Ground B?

A

Vivien Westwood v Conduit Street Developers

HD APC OCT 21 (18 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions