Case Study 2

Question 1

Explain the Building Regulations?

Answer 1

Apply to most new buildings, renovations, conversions. To ensure safe, healthy and high performing

Approved Documents - a way of meeting Regulations.
PART M - Access to and use of buildings

Question 2

Explain the NPPF?

Answer 2

NPPF 2022 reflects UN sustainable development goals; eg national model design code
Links to Localism 2011 Act

Local plan preparation required under Section 3 to guide future development
GLA London Plan (regional spatial strategy)

Question 3

What is the Red Book?

Answer 3

Professional global standard to promote and support high standards in valuation.

Details mandatory practices for those undertaking valuation services.

Also offers guidance and includes IVS

Question 4

Explain the Red Book National Supplement?

Answer 4

UK National Supplement 2022 - updated following Peirera Gray review

New financial and governance reporting standards introduced (rotation)

Valuation of public sector accounting amended
Residential valuation guidance refined.

Question 5

Explain the UK Data Protection Act?

Answer 5

TheData Protection Act 2018controls how your personal information is used by organisations, businesses or the government.
Used fairly, transparently, kept for no longer than necessary

Question 6

What are the requirements of the UK Data Protection Act?

Answer 6

1. Requiring the consent of subjects for data processing
2. Anonymizing collected data to protect privacy
3. Providing data breach notifications
4. Safely handling the transfer of data across borders
5. Requiring certain companies to appoint a data protection officer to oversee GDPR compliance

Question 7

Explain the key features of the Comparable Evidence guidance?

Answer 7

Notes comparable evidence never perfectly matches

Three approaches use comparable evidence - Market / Income / Cost

Hierarchy of evidence - Direct / General Market Data / Other sources - eg interest rates / stocks

Question 8

What is the relationship between the comparable evidence and mandatory requirements?

Answer 8

Refers to VPS 2 / 3 - Proper record of inspections and investigations, in an appropriate format. Information should be summarised in a format understood

Question 9

How should you analyse comparable evidence?

Answer 9

1. Analysis of comparable evidence (steps)
2. Common Measurement eg IPMS
3. Make adjustments eg different state of repairs
4. Rank available evidence based on data and assessment

Question 10

How would you analyse comparable commercial offices?

Answer 10

From most important to least -
1. Open market lettings
2. Lease renewals
3. Rent reviews
4. Third party determinations
5. Sale and Leasebacks
6. Intercompany transactions

Question 11

What is the key objectives for the valuation of development property?

Answer 11

Notes valuers need full understanding of process

Be clear about
1. purpose
2. basis **
3. assumptions **
4. facts underpinning valuation

Question 12

What would be your approach to valuing development property?

Answer 12

Purpose; basis ; assumptions ; facts underpinning

Analysis - use two methods - eg comparative and residual

Apply risk analysis to reduce uncertainty
Sensitivity Scenarios Simulation

Question 13

What is the purpose of the PS on CPO?

Answer 13

Members should -
1. Demonstrate a proper understanding of the statutes, case law and govt guidance
2. Being aware of changes in responsibilities to duties if acting as expert witness
3. Providing a balanced professional advice to the client; fair and reasonable compensation

Question 14

What are the key requirements for the PS CPO?

Answer 14

Think
Do not accept unless you have competency to do the work (RULE 1 & 2)
Resources to do the work (RULE 3)

Prior to accepting instructions
1. Advise client Professional Statement will apply
2. Confirm terms of engagement (RULE 3)
3. No conflict of interest (RULE 1)
4. Written Record on Matters which advice is sought (RULE 3 & APPENDIX a)
5. Explicit about Fees and recording time (RULE 3)

Question 15

What are the 7 key principles of UK GDPR?

Answer 15

Lawfulness, fairness and transparency
Purpose limitation
Data minimisation
Accuracy
Storage limitation
Integrity and confidentiality (security)
Accountability

Question 16

What are the rights of data subjects?

Answer 16

• The right to be informed
• The right of access
• The right of rectification
• The right to erasure
• The right to restrict processing
• The right to data portability
• The right to object
• Rights in relation to automated decision making and profiling

Question 17

What does Freedom of Information Act 2000 do?

Answer 17

Imposes duty to
1. Confirm or deny that the information requested is held
2. If information is held, to communicate it to the applicant

Question 18

Explain local plan making process

Answer 18

1. Gather evidence
2. Consider options
3. Reg 18 consultation
4. Review
5. Reg 19 representations
6. Examination in Public
7. Adoption

Question 19

What is development?

Answer 19

Defined by TCP Act 1990
Operations (building / structures etc) or changes of use of land

Question 20

what are the potential fines related to data breaches for DPA?

Answer 20

up to 4% of global turnover or £17m whatever is higher

Question 21

What is 3.12 behaviour?

Answer 21

Check all data is accurate and up-to-date

Question 22

How did you calculate site abnormals?

Answer 22

Based on existing surveys, design team proposals and QS costing.

Question 23

What does valuation of development property say?

Answer 23

Follow Red Book - eg competency; purpose; scope; facts
Use two methods - comparative and residual.
Risk analysis to reduce uncertainty

Question 24

What did you allow for value and cost growth?

Answer 24

Advised by Gerald eve as development consultancy
4% per annum value growth
9% short term inflation - OBR
2% long term inflation - govt figures

Question 25

Why DMR1 has such small land value?

Answer 25

High cost of abnormals; complex construction cost building over existing operational station?

Question 26

Construction costs seem low?

Answer 26

BCIS plus abnormals, but inflation has still risen since 2022

Question 27

What contingency did you allow?

Answer 27

10 % developer
5% construction
plus abnormals

Question 28

how did you calculate the commercial?

Answer 28

MARKET RENT
Based on rent (comparables) x area
X YEARS PURCHASE
WITH DISCOUNT FOR RENT FREE

growth implicit

Question 29

what was MCIL rate?

Answer 29

£60 per m2 for eligible floor space

Question 30

What was s106?

Answer 30

Assumption per housing unit based on other LLDC developments £3500

Question 31

What was CIL

Answer 31

£111 for residential
£41.67 for retail
£0 for commercial

Question 32

What was marketing and letting?

Answer 32

Marketing 1%
Letting 10%
Letting legal 5%

Question 33

What was disposal fees?

Answer 33

1% Agent - Private
0.5% - Sales legal fees - Private
0.25% - legals AH

Question 34

Developer profit for the development?

Answer 34

17.5% Private
6% Affordable
12% Commercial
GE Advised

Question 35

Finance costs?

Answer 35

6% construction
6% land

Question 37

Acquistion costs?

Answer 37

5% Stamp duty
1% Agent fee
0.8% legal fee

Question 38

How would you calculate developers profit instead of land?

Answer 38

GDV - minus developer costs minus land equals profit

Question 39

What are the three types of risk analysis?

Answer 39

1. Sensitivity - individual metrics
2. Scenarios - eg changes in values and inflation; durations
3. Probability - monte carlo simulation

Question 40

What is VPGA 16?

Answer 40

Valuations for complusory purchase and statutory compensation

Question 41

How did they value the Property Cost Estimates?

Answer 41

Existing use value + hope value
Took into account use, occupation, interest, access, redevelopment opportunities