Case Study Flashcards
Did you note quote on the job?
No, the job was quoted on by my supervisor. However, I am aware of how to structure fee quotes.
You measured the flats on both a GIA and IPMS 3B basis why?
The RICS Professional Standard - Property Measurement has made it mandatory for measurements to be undertaken using IPMS for both offices and residential units. Despit,e measuring in IPMS, GIA was the measurement used for this valuation as it was in line with the comparable evidence and was agreed with my client.
What are some differences between GIA and IPMS 3B?
While both are internal measurements to the perimeter walls. Some differences include voids above stairwells on upper floors which IPMS excludes but GIA includes. Additionally, window revels which are defined as the IDF are included in IPMS.
What made you decide that the shop was rack rented?
At £46.50 ZA it was higher than any of the other comparables. However, all the comparables included larger ITZA areas with the exception of 100 Portland Road. They also were in locations with low foot falls and I believed due to the close proximity with the train station that they subject property could achieve this Zone A.
What happens when ASTs expire?
The tenancy becomes periodic and either party can end the tenancy at any time.
Why did you put more value on comparable flats that were not located within commercial buildings?
With buildings that include shops, due to the creation of E class in 2020, a commercial unit can now be easily changed into a restaurant, barbers, etc. This can significantly effect who would want to live about these buildings due to the use, smell, etc.
Why did you assume a 5% deduction for the SA of 6 month restricted marketing period?
I believed setting a restriction for marketing would impact the value and therefore decided a decrease was appropriate. However, I believed a decrease of more than 5% would be too much due to the excellent location in an area of high demand. The main issue would relate to the shop which I believe would be marketed for approximately 6/9 months, therefore, if there was a restriction this would require a deduction as well.
What does full protective measures mean in terms of radon level?
Due to the high radon level, the UK Health Security Agency state that testing for radon regularly is required and that the property should fully comply with building regulations regarding radon prevention. This could include installing a radon barrier or a ventilated subfloor when constructing new buildings, extensions and conversions.
You mention not making an explicit deduction for any repair what do you mean?
For the commercial property was it was let on effective FRI terms, I would assume it was in full repair anyway as it would be the tenants responsibility. However, for the residential parts if I found items of disrepair, I would calculate how much they would be and deduct this from my MV.
Why did you apply spot figures to your rental analysis?
I did not include the ground floor kitchen and office in my ITZA, but I did believe they provided some value to the unit. I decided to use spot figures which I obtained from similar comparable analysis for these parts.
What did you do as there were no approved floorplans for the conversion of the basement maisonette?
As the decision notice stated the layout I was able to confirm that this was in line with what I inspected. However, I assumed that the conversion was in line with what was agreed with the LPA, however, I also caveated that my client’s solicitors should confirm this to be the case and report back if this was not as assumed.
Why is the investment sale of 107 Western Road at a NIY of 6% whereas your adopted a yield of 8% for the retail area?
-More prominent area
-T had served S26 to extend lease, longer unexpired term proposed, more value.
How did you check you were competent to undertake the report?
I confirmed what units were in the building.
I confirmed the basis of values required.
This was located in an area where my company does lots of instructions. I was aware of the area and comparables.
What did you mean by an effective FRI lease?
The tenant was liable to repair the internal parts of their unit, but they also paid a proportion of the service charge for the external areas of the building.
Were the lack of approved floorplans an issue for the basement in the valuation?
The decision notice for this planning application included a description of the layout of the flats. This tallied with what I inspected. However, I also assumed that the planning application complied with planning and building regulations and I advised my clients to get their solicitors to confirm this to be the case. If it wasn’t they should get in touch as it would impact value.
