Case Study Flashcards
I notice the photo in your submission shows vegetation growing in the roof, pallets outside and decorating issues, lease breaches when suggesting renewal terms?
The vegetation was highlighted to my client, who was aware and this was already an issue prior to the tenants occupation 3 years prior - the lease has a right of re-entry to repair so I advised my client they could issue a section 146 notice, complete the repairs and re-charge this as a debt.
The issues were raised to the tenant, they were made aware of the conditions in their lease for repair.
What was the loading door height of the unit? How did this compare to comparables?
The door height was 3m by 3.25m and the comparables where similar sizes - Walkden and Swinton sites had higher doors at 5m but this was assumed due to large GIA
What data did you gather from the tenant in regard to statutory obligations?
Electrical condition report
Fire safety assessment
H&S risk assessments
What did you learn from desktop research on the location?
The location was a mix of industrial and residential
The industrial units surrounding estates appeared similar condition, externally.
Uses were for manufacturing, food production and car servicing
The area lacked infrastructure for large scale wholesale distribution, narrow roads, smaller units
How were you sure VOA and EPC measurements were more accurate than your own files?
I was not sure they were more accurate but noticed discrepancies firstly on the EPC which I cross checked with VOA.
The fact both were similar raised a question as to either they were both wrong or our file was wrong, hence the need to complete measurements at lease events.
Why was the measurement inaccuracy not picked up before?
I believe that previous surveyors had used the file measurements, which were historic.
Where there obstructions during measurement?
The nature of the business made it difficult to measure, however there were sections which I could measure from the wall surface to the other wall surface. I had a steel rule with me if I couldn’t gain access to the wall.
Where service charge adjustments made following three years of incorrect fees?
No they were not adjusted service charges on were low at less than £100 a year and were mainly made up of external lighting and CCTV monitoring - the discrepancy would have resulted in a nominal but worth adjusting on future budgets for fairness.
How did you explain to your client a colleague had been negligent in their measurement?
The colleague was not a member of the RICS and was undertaking the APC at the time, I explained perhaps their knowledge on measurement was lacking and that my client could ensure shadowing for junior members to ensure they follow the example of senior surveys.
How would you calculate operational yard space?
Operational yard space can be calculated as follows:
Total site area
- Building footprint
- Parking (staff & customer)
- Green and other open (amenity) space
- Deadspace* (redundant & required)
= Operational yard space
What was the eaves height of the unit?
6.5 meters
What adjustments were necessary for comparables outside the act?
Comparables outside the act limited security of tenure therefore downward adjustments were made.
That was in this circumstance with the comparables available
How did you verify comparables?
In this instance the most comparable properties were in-house so information was readily available.
For those that were not in house, I contacted the agents for verification
How did security of tenure affect the properties value?
- It made it more valuable
- The tenant was able to establish a business, build up good will
What risks were there for not submitting a formal s25 notice?
- My client would not benefit from an interim rent should an agreement not be met.
However that interim rent would only be applicable 6 months after serving the s25 notice at earliest
my advice was to agree a new lease sooner.
