Case Study Flashcards
What aspects of the case study Integrate the diversity and Inclusion competencies?
Embracing and promoting equality and diversity will help to develop an inclusive workplace. This is an environment where:
*people are treated with dignity and respect
*the talents and skills of different groups are valued
*all employees are encouraged and supported to develop and progress
*there is a welcoming workplace culture, which empowers people to reach their potential.
I demonstrated this by recognising the different measurement approach of the tenants surveyor and treated him with respect. I took the time to investigate and calculate the differences. I organised a site meeting and politely re-measured the areas together to come to an agreement. I promoted fairness and transparency in the calculations.
What made this rent review different to others you have completed?
The complicated drafting of the rent review clause caused ambiguity in the interpretation of the hypothetical lease for rent free periods.
What impact did the Grade II listing have on your rent review?
The repairing obligation of a grade 2 listed building can be onerous on a tenant who has full repairing and insuring terms. An allowance should be made for this on valuation and comparing evidence to modern offices.
Was the lease inside or outside the Act? What impact did this have on your actions during the review?
The lease was inside the Act and an allowance for this can be made on the valuation when comparing it with outside the act leases.
When will the EPC need renewing for the property?
The EPC expired in June 2022. The EPC will need to be renewed at lease renewal or if the property condition or refurbishment would have an effect on the EPC rating.
Which of the properties original features remained after conversion?
The property had original fireplaces int he house with sash windows and exposed stonework. The barn had exposed oak beams and partitions
There is a large difference between the rent review notice amount and final agreed rental figure. Why was this?
The evidence I found for office space ranged between £21 and £27.50 per sq. ft. And the parking from £1450 to £2,300 per space. I did not want to prejudice the evidence by submitting a lower notice. Each surveyors opinion is diverse and you cannot negotiate up.
How did you ensure client satisfaction despite such a large difference?
I informed my client of an opinion of Market rent and also a quotation figure, this enabled me to manage my clients expectation on a realistic settlement.
What areas of limited use were there?
The property has basement storage with limited light and access. The kitchen space in the barn is accessible by a staircase and contained the original oven furnaces which affected the space available and light.
What was the reason for the discrepancy in measurements?
The tenants surveyor had measured the property using feet. and inches. The majority of spaces measured were larger to my own calculations and I agreed to used them. There were some irregular room spaces in the house and the barn landing which was used as office space. We measured these spaces together in sq.meters to reach an agreement.
How did your measurement compare to that used in the previous rent review?
In the previous rent review the floor area was never agreed between parties. My measured floor areas was 8683 sq. ft. and the previous review was measured at 8670 sq. ft. which was incredibly close.
Why did you apply a 50% reduction to ancillary areas?
I applied a 50% discount as the ancillary space is not as valuable as the useable office space. The comparable evidence showed that basement kitchen space is usually valued at £5 sq. ft. for quotation purposes I felt that a 50% reduction was appropriate to commence negotiations at which equated to roughly £13 per sq. ft.
Talk me through the non-typical aspects to the rent review clause and how you overcame these.
The main non typical element was the reference to a ‘provided always’ reference to rent free if the tenant did not action the break clause. The hypothetical tenant would benefit from a reduced net incentive. This was further complicated by a disregard of the rent free period within the lease and also the length of the hypothetical term. I overcame these by seeking legal advice and looking at case law. I used my integrity to act fairly and reasonably to address each issue and provide scenarios from both landlord and tenants perspectives to reach a reasonable decision on the approach to take for the best outcome for my client.
With only 5 years unexpired term remaining why was the tenant investing in increasing the green credentials of the building?
The lease is protected under the Landlord and tenant Act 1954 which means that the tenant is entitled to a new lease on the same or similar terms at the end of the term. The tenant planned to remain in occupation of the property and is looking at ESG, Economic, Social and governance to promote its business and wellbeing of its staff.
What is your understanding of the Old Street Retail v GB Healthcare 2022 case?
2000sq ft Pharmacy in the city of London. 1954 act renewal with only the new rent left to be decided under section 34. Should the rent be reduced to refEPClect the absence of fitting out rent free period? Tenants occupation to be disregarded when calculating new rent. The new tenant is auusumed not to be a sitting tenant. The new tenant would strike a bargain that would include a rent free period ( 6 months) The comparable evidence must be discounted for that period, the discount would cover both fit out and incentive of rent free.
