Case Study Flashcards
What would have you done if your company didn’t have a conflicts checker?
What were the conditions of the sale?
a. Confirmation of use as offices within last 27 months.
b. Confirmation of “empty” of use within last 3 months.
Was your client a charity, public or private body?
union, held in a trust with two trustees
What were your clients objectives?
Quick sale, highest possible value
How does the freehold of the arch way work?
What signs of defects were you looking for?
damp, cracks, asbestos
Tell me about PD rights and Class MA?
GPDO 2015, Class MA bought in in 2020 change of use from E – C3
What doe MA stand for?
Mercantile to Abode
What impacts does being in a conservation area have in regards to planning?
Mean there are further controls on what you can do. You may have to go through full planning for certain changes. Trees need permission.
How do PD differ from full planning?
Project is judged against legal requirements so more likely. Prior approval application, 8 weeks 96£. Submit designs, location plan.
What factors are assessed in PD application?
Proposed change, if it meets the requirements. And flood risk and fire risk
How would you have used the investment method?
Collected comparables, and appropriate yields, capitalised yields
Why did you use that yield and what effects it?
Similar property, similar time in the market. Effected by supply and demand, economic factors
Why did you not market it as an office?
Little demand for office, residual of PD scheme was more than office
What are the limitations of BCIS?
Out of date, info from select number of public tenders, average numbers
Why did you use 20% profit on cost?
Appropriate with risk and value
How did you decide what contingency rate to use?
5% - not a huge project but weary of build cost inflation
Talk me through the bid process that is carried out?
- Sent bid deadline email
- Received bids on deadline
- Created bid schedule
- Second round of bids
- Client picks preferred party
How would you carry out an appraisal without argus?
I would use excel
How long would you wait before concluding there was no conflict?
48 hours
How did you calculate the fee proposal?
in TOB its 1.5% of sale price unless stated otherwise.
What market assumptions did you use and why?
Professional fees 8%
Contingency 5%
Finance 6.5%
Build costs 230/sq.ft
Why did you use that finance rate?
Rate i was advised at the time from our valuation department.
Did your appraisal form a red book valuation?
No - it was not a red book valuation, more of a high level without liability
Did you consider any issues with access?
Access was spoken about but was not considered to be an issue from any buyer
Size of site in sqm?
2,100
What legislation is pd rights?
General Permitted Development Order 2015
What is going to happen to base rate?
5.25 - predicted to rise to 5.5% by end of 2024
What is the rate of inflation now?
6.7%
