Case Study Questions Flashcards
How did you prepare for your inspection of Unit 29?
- Liaise with the tenant to arrange access
- Undertake a pre inspection risk assessment
- Understand what PPE - industrial so steel cap boots etc , also COVIC considerations e.g. face mask
- Review the tenants lease and obtain property file - tenancy schedule, service charge etc
- Inform colleagues and diarised the inspection
- Listed required equipment
Why had the tenant experienced difficulty during covid?
Reduced customer base, shrinking supply chains as a result of COVID
What did you look for on your inspection?
- Surrounding area - business activity etc
- External - defects, repair, condition and age of building
- Internal - lease compliance, repairs, defects, statutory compliance
Could you describe Unit 29?
- Industrial unit built in the 1980s
- Steel frame with brick elevations, under a pitched roof
- Cavity wall construction with the brickwork
- Loading doors to the rear of the property
- Internal WC and kitchenette
- Asbestos roof
How was the asbestos roof managed?
Tenants responsibility under their FRI lease
However asbestos register held, updated regularly and tenant undertook regular asbestos risk assessments
On what basis did you measure unit 29?
GIA - in accordance with the code of measuring practice
What is GIA?
Gross Internal Area
- Area of the building measured to the internal face of the permitted wall at each floor level
What was included in your GIA measurement?
- Areas with headroom less than 1.5 metres
- Areas occupied by internal wall
- Mezzanine with permanent access
- Columns stairwells etc
What was excluded from your GIA measurement?
- Canopies
- Perimeter wall thickness
- Open vehicle parking
What was the size of Unit 29?
1890 square feet
What was the size of the estate?
135,822 sq ft
Can you explain the service charge of the site and what this was running at?
One schedule
Man fees, staff costs, site security, landscaping, drainage PPM, external repairs etc
Estate - £0.66 psf
Unit 29 - £0.66 psf
What repairing basis was the tenants lease?
FRI - tenant responsible for all repairs and upkeep along with insurance
Was the lease inside or outside the act?
Outside
How was the lease contracted out?
Under section 38(a) of the L&T Act 1954
- LL served notice to the tenant advising of intention to contract out
- T signed simple or statutory declaration (statutory if less than 14 days before lease commencement
- Witnessed by solicitors
What were the lease terms under the tenants lease?
- Rent - quarterly in advance
- No RR/Break etc
- Contracted Out
- T could assign or sublet subject to LL consent
- T could alter subject to LL consent
What use class was permitted under the lease?
B1 B2 or B8 - light industrial, general industry and storage
When was the use class order changed?
April 2021
New use for Unit 29 - E, B2, B8
How did you know the tenant had fulfilled their lease obligations throughout lease?
Debtor payment history using TRAMPS, running arrears reports
Why did you recommend a payment plan to your client?
- Tenant in arrears
- Offered protection from the Coronavirus Act (S82) and the Taking Control of Good Regulations - no CRAR, forfeiture, stat demands possible
- tenant responsive and this allowed for income stream to continue, while allowing tenant to continue to operate
What does without prejudice mean?
Cant be used as evidence should negotiations fail
Why were you keen to work with the tenant, with arrears over 75% rent roll?
- Limited recovery options
- Good payment history
- Act in accordance with Covid code of practice - maintain L&T relations, act in favour of business and be transparent
What options were available with regards to recovering arrears?
- Payment plan
- Rent deposit draw down
- Court action
What rent recovery options would have been available should the covid restrictions have not been in place?
- CRAR
- Statutory demand
- Lease forfeiture