Case Study Level 2 Flashcards
Explain the process of vacating the original tenant, with regard to the Law.
Meet with tenant, discuss and come to arrangement, sign a tenant vacation form. If they were protected under the act then we would have to serve a Section 25 notice for breach of lease terms and persistent delay in rent payments
How did you perform AML and COI checks?
Checking ID, Name, Date of Birth, Address, no known relations
What did you include in your Heads of Terms?
Property details, tenant details, landlord details, tenure, use, deposit, term, rent, rent review, termination, service charge, utilities, repair, assignment, underlet, contracting out of the 1954 act
How did you treat the Tenants recommendation?
Took it into consideration just like any other application
Talk me through the occupation problem, paying particular regard to the risks involved.
Council gets audited, legal documents get checked, lease is needed to verify a tenancy and legal occupation
Why was KI1 Option B ever considered? (Vacate both tenants)
As the incoming tenant hadn’t gone through the application process and the outgoing tenant was behind with rent
KI1 Option A (vacate incoming tenant) carried a number of risks, talk me through them.
Risk of falling behind with rent, incoming tenant might be reluctant to leave and cause issues vacating
Was the existing lease at a rent review point? Explain your rationale regarding Key issue 2 Option A
Not at rent review point but was a relatively new lease with rent set recently
Why would you have to use industrial parks not Council owned to determine your comparable method value?
Because we don’t want our income to lag behind private owned values
Why do you say that there was a risk that the comparable evidence might not be able to reflect the value of industrial units on a national level? Why is this relevant?
Because it is good practice to know about the industry as a whole, also to anticipate questions from management or councillors. Comparable evidence is less useful when there isn’t a lot of data, also a chance that the values in the area are stuck in a bubble. Should check that national prices aren’t doing something drastically different, and if so find out why.
Explain how you measured the Subject unit and explain your basis of measurement.
Laser pointer, practice, checking, GIA Gross Internal Area, RICS Code of Measuring Practice
What would you have done if the incoming tenant had not been suitable?
Asked them to vacate and look for another tenant
Talk me through your comparable method valuation, paying particular regard to the adjustments you made to the evidence.
Looked at the £/sq.ft, size, larger units are cheaper, look at age, biggest weight for most similar properties
Describe how you undertook your risk-based approach.
Categorised high risk and low risk, high being financial impact, likelihood of occurring
Why did you agree an RPI rent review? Why not just to market value?
The council prefers it, more transparent, set amounts even small businesses understand and cant dispute
