Case Study

Question 1

What would have you done if your company didn’t have a conflicts checker?

Question 2

What were the conditions of the sale?

Answer 2

a. Confirmation of use as offices within last 27 months.
b. Confirmation of “empty” of use within last 3 months.

Question 3

Was your client a charity, public or private body?

Answer 3

union, held in a trust with two trustees

Question 4

What were your clients objectives?

Answer 4

Quick sale, highest possible value

Question 5

How does the freehold of the arch way work?

Question 6

What signs of defects were you looking for?

Answer 6

damp, cracks, asbestos

Question 7

Tell me about PD rights and Class MA?

Answer 7

GPDO 2015, Class MA bought in in 2020 change of use from E – C3

Question 8

What doe MA stand for?

Answer 8

Mercantile to Abode

Question 9

What impacts does being in a conservation area have in regards to planning?

Answer 9

Mean there are further controls on what you can do. You may have to go through full planning for certain changes. Trees need permission.

Question 10

How do PD differ from full planning?

Answer 10

Project is judged against legal requirements so more likely. Prior approval application, 8 weeks 96£. Submit designs, location plan.

Question 11

What factors are assessed in PD application?

Answer 11

Proposed change, if it meets the requirements. And flood risk and fire risk

Question 12

How would you have used the investment method?

Answer 12

Collected comparables, and appropriate yields, capitalised yields

Question 13

Why did you use that yield and what effects it?

Answer 13

Similar property, similar time in the market. Effected by supply and demand, economic factors

Question 14

Why did you not market it as an office?

Answer 14

Little demand for office, residual of PD scheme was more than office

Question 15

What are the limitations of BCIS?

Answer 15

Out of date, info from select number of public tenders, average numbers

Question 16

Why did you use 20% profit on cost?

Answer 16

Appropriate with risk and value

Question 17

How did you decide what contingency rate to use?

Answer 17

5% - not a huge project but weary of build cost inflation

Question 18

Talk me through the bid process that is carried out?

Answer 18

• Sent bid deadline email
• Received bids on deadline
• Created bid schedule
• Second round of bids
• Client picks preferred party

Question 19

How would you carry out an appraisal without argus?

Answer 19

I would use excel

Question 20

How long would you wait before concluding there was no conflict?

Answer 20

48 hours

Question 21

How did you calculate the fee proposal?

Answer 21

in TOB its 1.5% of sale price unless stated otherwise.

Question 22

What market assumptions did you use and why?

Answer 22

Professional fees 8%
Contingency 5%
Finance 6.5%
Build costs 230/sq.ft

Question 23

Why did you use that finance rate?

Answer 23

Rate i was advised at the time from our valuation department.

Question 24

Did your appraisal form a red book valuation?

Answer 24

No - it was not a red book valuation, more of a high level without liability

Question 25

Did you consider any issues with access?

Answer 25

Access was spoken about but was not considered to be an issue from any buyer

Question 26

Size of site in sqm?

Answer 26

2,100

Question 27

What legislation is pd rights?

Answer 27

General Permitted Development Order 2015

Question 28

What is going to happen to base rate?

Answer 28

5.25 - predicted to rise to 5.5% by end of 2024

Question 29

What is the rate of inflation now?

Answer 29

6.7%