Case Study

Question 1

What is the Network Rail Access for All Scheme

Answer 1

The Access for all scheme is part of the governments inclusive transport strategy which looks to make the railway network more inclusive for all.

Question 2

How do you feel your project aids this accessibility?

Answer 2

The project enables those with mobility issues access to the train services at this location via the new lift that will be installed taking passengers down to the platform level.

Question 3

How successful do you feel in achieving your internal clients main objectives?

Answer 3

I feel that my advise to my client achieved the main objectives which were to gain possession of the land needed for the project whilst also retaining the rental income for the commercial building.

Question 4

Talk me through the reasoned advice you gave your client during the project?

Answer 4

I advised my client when the land was within their control that we had the ability to offer the commercial unit under a lease outside of sections 24 to 28 of the landlord and tenant act to protect its interests in relation to the emergency and maintenance access going forward. I advised on the rent review and terms within the lease to enable my client to not only review the rent but to obtain possession of the property if needed.

Question 5

What was the relationship between the 6 month rolling break clause and the fact the tenancy was protected.

Answer 5

The 6 month rolling break was a contractual break clause. In relation to the protection of the lease under the landlord and tenant act the tenant has the right to renew the lease. In regard to this particular case, the rolling 6 month break clause meant that my client had the right contractually to break the lease with 6 months notice but also had to serve the relevant notice within the prescribed timescales and grounds under the act also.

Question 6

How was the reduced demise negotiated with the tenant?

Answer 6

I advised my client that they could offer the tenant a reduced demise whilst keeping the rental income. I represented my client and negotiated with the tenant to remain in the commercial building area. The tenants main concern was to have a lease of the commercial building.

Question 7

Where was asbestos present in the property?

Answer 7

I checked my clients asbestos management register before attending the initial site visit. There was no asbestos present.

Question 8

Why did you deem the comparable method of valuation to be most suitable? What other methods did you consider?

Answer 8

I advised my client that the comparable method of valuation would be the most suitable as this was a well populated area with many retail properties in close proximity. This would give a good indication of the market value for retail premises at this location.
Other methods I could of considered where the profits method, residual, contractors and the investment method. None of these would have been suitable for this property type, use and valuation reason.

Question 9

How did you overcome the lack of comparable evidence of similar sized properties?

Answer 9

I advised my client that to reach a market value it would be useful to look at the zone A retail rates in the area and compare. I obtained the measurement data from the VOA on each of the comparables I found to calculate the zone A rates for each of the properties. I compared these with the rates overall for each of the properties. This gave me a more accurate rate for the subject unit which due to the size the whole would have been the zone A rate.

Question 10

What impacts of covid did you consider when analysing new market lettings as evidence.

Answer 10

I advised my client that market conditions could change in the coming years and to have a rent review clause at year 3 would be beneficial. If the market picked up it would be favourable for my client to be able to review the rent at this time.
Many smaller businesses had suffered over the time and therefore this may have impacted both rental rates and terms offered in retail areas such as this.

Question 11

Why did you determine incurring costs by obtaining lease copies from LR was more suitable than verifying the information through the relevant agents?

Answer 11

I contacted the agents and most were not forthcoming with all of the information needed to accurately compare and analyse the data. Therefore to enable me to advise my client in a professional manner I decided to obtain the information from the Land Registry for my advice and report to be accurate. As my client holds an account with the land registry for both obtaining copies and a data layer on its mapping system the costs are minimal.

Question 12

What would the difference have been adjusting rate psf vs zone A rates?

Answer 12

When advising my client I looked at both rates psf and zone A. The comparison of pdf rates did not make sense due to the subject property being so small. When comparing these it was clear that the level of adjustment needed for the rate psf overall would be greater than that of any adjustments needed on the zone A figures. The zone A rates were more in line with what would be expected of retail units in the area that the rates of the larger properties psf. If the rates psf overall would have been applied, this would have to have been greatly adjusted for quantum.

Question 13

How was the likely disruption of the works reflected in the agreed rent?

Answer 13

I advised my client that as the access to the side of the building did not hinder the tenants business in any way, this would not require any reduction in rent for disturbance.

Question 14

How did you determine an appropriate adjustment level for evidence
with no breaks vs your rolling 6 month breaks?

Answer 14

I determined the appropriate level for adjustment by speaking to other surveyors within my clients business and an external agent for their advice and experience of dealing with this issue.

Question 15

How did the new rent for a smaller demise compare to the previous rent?

Question 16

How would a contracted out lease not give your client a secured Income
stream?

Answer 16

A contracted out lease gives the tenant the ability to serve notice to terminate in this case with 6 months notice to end the tenancy.

Question 17

Why had you not advised your client about documenting a tenancy at
will?

Answer 17

I had advised my client about documenting the tenancy at will. Due to issues with covid restrictions at the time and the delay in site visits this delayed the issue of the documentation but this was implied.

Question 18

What additional protection would the occupation have achieved as their
lease was already Inside the Act?

Answer 18

Had tenancy at will not been implied then documented, the occupation would have been deemed to have been a continuation of the original lease and therefore the protection under the act for renewal would have continued.

Question 19

What options did you advise your client had when negotiating the new
lease terms?

Answer 19

I advised my client that they had options in relation to the lease term, the rent review provisions, the alienation clauses and the security of tenure. I advised my client that a 10 year contracted out lease with a 3 yearly rent review clause would be beneficial to them in relation to protecting their interests and reviewing the rent.

Question 20

What aspect of the project do you feel could have had a better outcome?

Question 21

What would you do differently next time?

Answer 21

I would have advised my client to ?????

Question 22

How did you act ethically?

Answer 22

I advised the tenant throughout that he had the right to seek his own legal and professional advice from a solicitor and a surveyor.

Question 23

What were your key achievements?

Answer 23

The key achievements are obtaining the land for my clients project and retaining rental income following the termination of a lease which was required.