Case Study Flashcards

1
Q

CS: On the site map, what does the red crosses mean on the road?

A

Change is level/ gradient

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2
Q

CS: What does TCB mean on the site map?

A

Telephone call box

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3
Q

What do the black dots on the site map mean?

A

Obstruction

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4
Q

On the site map, it says farm, do farms suffer from contamination? If so how would you reflect the risk of contamination?

A

Yes. Increasing the build costs/ contingency/adding a higher site clearance cost

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5
Q

CS: What contingency did you adopt? if there was no contamination what contingency would you use?

A

I used 7.5%. If there was no contamination I would use 5%.

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6
Q

How did you reflect planning risk?

A

Increased timeline, increased contingency, increased professional fees

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7
Q

What factors affect your profit on cost?

A

Risk to how easy/ quickly units will sell

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8
Q

How did you identify the site boundary?

A

Looked at land registry

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9
Q

if the property/ site was not on Land Registry how would you find out the site boundary?

A

-Old title deeds potentially held by the client.
-If all the surrounding sites are registered then you can work out the boundary.

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10
Q

What is the benefit of having a registered title?

A

Legal Certainty and Security
Clear Boundaries and Easements
Simplification of Transactions

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11
Q

On the site map, what does the T at the top right mean?

A

Drainage ditch

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12
Q

CS: Who undertook the massing study for the site?

A

JTP Architect

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13
Q

Did you spot any asbestos on site?

A

CS: No I also requested if an aspestos register had been created. it had and it concluded that there was no asbestos on site

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14
Q

Where might you find asbestos in a 1960’s building?

A

Window boards
Corrugated roof
Piping insolation

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15
Q

How did you determine the capital value of the proposed development?

A

I used comparable evidence to determine a spot price for each resi unit time. I then used the price per sqft to sense check my MV.

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16
Q

CS: Would all the same unit houses have the same value?

A

As I was undertaking a high-level appraisal I determined it was sufficient to do a bended average rate for the MV. If my client wanted me to further analysis I would provide a different amount per unit.

17
Q

CS: What type of measurement did the architects use?

A

GIA

18
Q

CS: Is the rate per sqft for the build costs a blended average?

A

No i applied a different rate on the flats and the houses

19
Q

What was the base rate on your valuation date?

A

5.25%

20
Q

CS: What else could you have done a sensitivity analysis on?

A

Sales rate, construction rate and timeline

21
Q

Define EUV-SH

A

Existing Use Value- Social Housing. Outlined in VPGA 7. Refers to the best offer at the date of valuation.

22
Q

CS: Your comparables are quite out of date, why?

A

Given that the proposed development was going to be finished at a high spec, I thought the comps I used were of a higher quality. I am aware of other developments at the time of the appraisal, but I considered the comps used more comparable at the time. I also used these comps as I was able to get achieved prices, which are more reliable.

23
Q

Case study: What costs are included within your external costs?

A

Road works, landscaping works etc

24
Q

CS: Why did you have a finance cost of 8%

A

-Reflect market interest rates
-Risk premium
-Cost of different types of capital used in project
-Market conditions and lender requirements at time of appraisal

25
Q

What debt finance rate did you use and why?

A

100%. Reason:
- Simplification
-maximising leverage
- stress testing the project
-modeling worst-case scenario

26
Q

What is the process of instructing a sub-consultant?

A

-Confirm Subconsultant competence and qualifications
-Assess conflict of interest
-Define the scope of work
-Draft terms of engagement
-Obtain the client’s consent
-Coordinate and monitor the sub-consultants work
-Review and incorporate the sub-consultants work

27
Q

What is currently happening in regards to first homes?

A

Current first homes are still provided as policy. However, the government is trying to phase FH out.

28
Q

Case Study: What is included within the professional fees you have allowed for?

A

-Architects fees
-Project management fees
-Quantity Surveyor fees
-Structural engineer fees
-Planning consultant fees