Case Study Flashcards
You identified the property as being built circa 1990 - how did you age it?
Checked with client + confirmed this through the title document
What defects would you be alert to?
- Damp
- Mould
- Rot
- Cracking
- Slipped tiles
- Broken gutters
- Internal cosmetic damages
Do you know if this was solid or cavity brick?
Cavity - even pattern of stretchers, evidence of weep air vents throughout
Did the moss growth at the front of the property change your inspection?
That was actually an old photo taken before the property underwent external decorations
What type of tenancy was the property let on?
CTA (Crown Tenancy Agreement)
When was the rent of £1750 PCM set? has It changed?
How do you complete a tenant checkout?
- Review the lease + understand tenants’ obligations
- Arrange to meet inventory clerk + tenant at property
- Go around property + check that items have been removed
- Have a look at general condition of the property, take meter readings
- Take keys from tenant
- Compare inventory report to original report + propose deductions to tenant if applicable
- Once satisfied + agreed, arrange deposit to be returned within 10 days
You mention that your client has a disposal schedule, could you expand on what this is?
I am not involved in the disposal schedule
This is managed with another team but I believe it is based on distance from the scheme (properties normally only considered if over 300m away from scheme)
Who compiles this?
Disposal team
What Is the strategy?
To dispose of properties once construction allows
How often Is It updated?
Unsure of the exact timescale but I know it is updated on a regular basis
What was the nearby construction?
Construction of a major infrastucture scheme
What are three differences between IPMS3B and GIA?
Why did you obtain three quotes?
To avoid any cost discrepancies as the costs were a lot higher in value
What relationship did you have with the firms?
How did you ensure this was a fair and transparent process?
By providing the contractors with a clear specification including photographs
Would the refurbishment work lead to a capital increase?
I considered that it would not because refurbishment works are very subjective
Consider that buyers would prefer neutral spaces so they can do it up as they wish
Refurb works could have deterred potential buyers
Would the refurbishment work improve the marketability of the property?
Not necessarily - could deter potential buyers as often prefer to buy neutral spaces so can do it up as they wish
Who would the potential purchasers for a property like this be?
Most likely a small family
Who would the potential renters for a property like this be?
Most likely a small family
Could you describe the Immediate vicinity that the property Is located in please?
Situated in a rural + isolated location
Small village
A few properties nearby
Not far from major town
What would the marketing period for a property like this be?
3 months
Very desirable location + house down the road sold very quickly
Why did you discount completing the works and letting It and marketing with a tenant In occupation?
This is not the typical approach preferred by my client
They did not purchase the property with the intention of it being an investment. Bought it under compulsory purchase powers
What method of disposal is preferred by your client?
Private treaty
Why was an auction disposal discounted?
Public process
Lack of flexibility
Has the property sold?
No but my client has now received internal approval for the property’s disposal to go ahead
What were the cost of works?
£33,560
What was the loss in rent?
Who completed the works schedule and how was it priced?
Are the cost of works still up to date?
No - quotes are valid for 28 days unless otherwise agreed with the contractor
What methods of communication did you use?
Why was the property condition not monitored?
It was regularly monitored by the security team however there were a lot of storms at the end of last year which contributed to the issue
What did the building survey bring to the Instruction?
Would you be confident diagnosing a leaking roof ?
Did you agree specific terms of engagement?
No as there is a service level agreement in place with my client
How did you clarify your clients’ instructions?
Through an initial meeting
How did you measure satisfaction with your advice?
What was the valuation date?
October 2024
You have included comparables from June 2023 - are these relevant?
What adjustments did you make?
They are relevant but I placed less reliance on them in line with hierarchy of evidence
Made positive adjustment to account for increase in prices (+1.5%) from June 2023 to October 2024
How has the market changed from June 2023 to the valuation date?
- Notable increase in resi transactions since June 2023
- House prices increased (UK showed signs of economic recovery since pandemic, slight decrease in mortgage rates made borrowing more affordable - this increased demand for housing)
- Approx. 1.5%
How did you check for conflicts of interest?
Did you identify yourself as a graduate surveyor?
Yes
What would you do differently next time?
How did you act ethically?
Recognised where my capabilities were limited + consulted advice from a building surveyor regarding the damaged roof
What were your key achievements?
Had property condition decreased from condition upon letting?
How did you process the tenancy deposit?
What is GIS?
Geographical Information System
Mapping software
What sort of construction impacts would make disposal unviable and why?
- Noise + vibration levels during construction
- Visual impacts from heavy machinery
- Dust + air pollution
- Access restrictions as a result of construction
What did the basic refurbishment consist of?
How did you determine the age of the property?
Checked with client + confirmed this through the title document
What would the void costs cover?
- Garden maintenance
- Security
- Heating costs
How could you assess the impact of construction on the property?
Reviewed Environmental Statement document
Was the property compliant - what made it compliant?
What were your immediate actions when you identified the damage to the ceiling?
Recorded it on H&S register
Why would you not let the property on a further 6 months before disposal rather than leaving it void?
Client only opts for 12 month tenancies - would be delaying objectives if let it again
Could be more difficult to evict tenant too with new legislation coming into force
Void costs were still cheaper than the refurb works we would have had to spend on it to get it in lettable condition
How did you undertake COI checks?
- Checked business central account
- Sent email round to Bham office
For key issue 2, what did you consider the impact in value was between all 3 options?
Option 1 - devalue property by roughly £5 - £6K (cost of works)
Option 3 - not really impacted value that much as buyers would likely make their own improvements anyway + could deter some potential buyers
Did you consider the new SDLT changes? Would it not have been better to sell the property before these came into effect?
Would not be enough time before changes came into effect
Also - did not consider the property to be a first home
Why would option 3 not impact value?
Considered any refurbs to be a personal taste - certain works could deter buyers
What is the difference between damp + condensation?
Damp - caused by water ingress from outside
Condensation - caused by moisture in air + water vapour condensing on surface
How was the property acquired?
Compulsory purchase - discretionary scheme (need to sell)
I can see you took good photographs which showed the defects & issues. Why was it important to take these/ have a detailed log of all those details?
To provide a record of condition + evidence in case you ever need to refer back to them
Also important to keep client informed + photographs is a good way to do this
Was Option 3 really ever an option? It sounds like Option 1 and Option were the main ones to hit their objectives.
Although it didn’t align as much with objectives I still considered it as part of my options appraisal
What risks come with extending search radiuses when searching for comparable evidence?
Comparables become less reliable
Could you let me know how you acted in accordance with 2 of the global ethical standards?
Rule 2 - members + firms must maintain their professional competence + ensure that services are provided by competent individuals who have the necessary expertise
Ensured this by consulting with a building surveyor. Confirmed suspicions of leak as did not want to provide incorrect advice to my client
Did you do a flood risk check?
Yes - property is in flood zone 1
What is the EPC rating and Council tax band of the property?
EPC C rating
Why is the authority who acquired the property letting it and not selling it?
- Their main aim is to dispose of properties but cannot do so while construction is ongoing
- Therefore - client lets properties to maintain condition until construction is complete
Was the aim to own the property indefinitely then?
No - they aim to dispose of properties once scheme is complete
Would the Crichel down rules apply to any subsequent disposal of the property?
Prop was vacant - no sitting tenant so could be offered back to original owner
However - prop was acquired by a discretionary scheme so this would make it ineligible
What do you mean by discretionary scheme?
Requires owners to prove that they cannot sell their property due to impact of scheme
Could you talk me through which was your best comparable and why?
Comparable on same road - most recent + similar in terms of location to subject
Lone working & Considerations before going out to side – can you run me through what these are?
- Follow company’s lone working policy
- Updated details in outlook
- Let someone know where I was at all times
- Carried out RA before visited site
- Reversed park + took fully charged mobile phone with me
What are your client’s key objectives if not to make profit?
Not to make a loss. They aim to break even on costs
What value did the double garage add to the property?
Considered this to have a positive impact on the value
How did you account for the damages in your property valuation?
How would the other team dispose of the property?
Property has been agreed to be sold via private treaty
How did you use GIS to identify how far it was away from construction?
Measured property’s distance from construction
How did you test it could not be seen or heard?
Could do further analysis by looking at the Environmental Statement
Would the comparable be blighted?
No - spoke to the selling agent who confirmed the property had received a lot of interest despite proximity to the scheme
How did you analyse your quotes?
How did you come to your market rent?
How long would your client have let the property for if you chose to complete the more expensive works?
A minimum of 12 months
Did you include the costs of sale in your analysis?
Yes
Why is disposal unlikely before summer?
Because of internal approval process - can take up to 10 weeks
Why was your client’s reputation a key factor?
Because scheme they are building is using tax payers’ money
How did the condition of this property compare to the one that sold down the road?
Very similar condition - both in need of refurb works
