Case Study Flashcards
What is the difference between equivalent yield and true equivalent yield?
Equivalent = Rents are received annually in arrears
True Equivalent = Rents are received quarterly in advance
When was the property built?
1890s period building
What type of windows are on the property?
Timber sash and case windows on first floor
Dormer windows on second floor
Is it in a conservation area?
Yes
Checked the Council website
What is the rainwater down pipe made of and what can go wrong with the system?
Cast iron downpipe that only has one hole for water to go through
Therefore, if it blocks then water can’t run off and can cause leaks
Was the left hand side recessed entrance included in the measurement?
Yes - as NIA requires measurement to the notional shop front/display window
(The forward most point at which a shop display window could be installed within the demise)
How did you know that the lease was contracted outside of the lease?
There will be a declaration signed by the tenant that is attached to the back of the lease
There will also be a statement in the provisos section confirming it is excluded
What title would the offices be on if you sold them separately to the retail?
Long leasehold
What would be the terms of the leasehold?
Typically in excess of 125 years and in consideration of a premium
Would pay a ground rent (10% of income from property)
How did you follow rule 5 of the code of conduct in this instruction?
Followed the Red Book guidance to keep good professional standard of work
How did you determine the reinstatement cost?
Calculated a net rebuilding cost
Minus demolition costs
Minus professional fees
Minus shoring up party walls cost from adjoining structures
What basis of measurement do you use for the reinstatement cost?
GIA
If there was only one tenant at lease renewal what would you do?
Net the rent (10% off due to only one tenant and easier to manage)
Capitalise the blended rate
