General/my submission Flashcards
What are the challenges the retail market has faced?
“Multi channel
Reduced footfall
Rise in turnover rents
Covid
Inflation/rise in living costs”
What are the use classes?
“B2 - General Industrial
B3-B7 - Special industrial groups
B8 - Distribution and storage
C1 - Hotels and Hostels
C2 - Residential institutions
C3 - Dwellings, houses, flats & apartments
C4 - Houses of Multiple Occupation
E - Commerical, business & service (Shops)
F1 - Learning & non residential institutions
F2 - Local community
Sui generis “
How did Covid affect the economy and real estate market/current market news?
“Government debt because of Covid crisis will be driver for economy
High inflation
Low supply
Ukraine War
Energy Crisis
Tax cuts”
SDLT cuts
Slowing economic growth
Rising interest rates
Chancellors recognition that planning system is too slow
New Prime Minister
Business rates reval next year - online tax/shorter reval cycle
ESG (Environmental, Social and Governance)
How did Covid affect the retail market?
”- Tenants more likely to exercise break clauses
- Lower headline rents
- Alternative rent review basis
- More letting incentives
- More flexible/shorter leases
“Turnover rents
Pandemic clauses
Why didn’t you refer to any of the RICS Covid guidelines?
…
What was the user clause for my property?
E
What were the RICS and Governement guidelines during Covid?
Government: Code of Practice for commercial property relationships during the COvid-19 pandemic
If I had acted on behalf of the landlord what would your initial approach have been?
- Check the lease to see if its inside the 1954 Act
- Speak to the tenant about their intentions
- If you wished the tenant to stay serve a friendly s25 notice
- Or serve a hostile s25 if you wish to determine the lease
Given the landlord was at £40k and you £15k, what other negotiation approach could you have taken?
The approach was the right one given the relationship with the landlord and to reach settlement through negotiation. If I knew the renewal was going to be contentious then I would have suggested serving a Calderbank or advising my client to push the court timetable to try and achieve a settlement.
What are business rates?
A tax on the occupation of non-domestic property
What is Rateable value?
Estimated annual rental value of a commercial property. Used to determine how much a company pays for business rates
When is the next revaluation?
Apr-23
How are rates payable on a building calculated?
Rateable value x UBR (uniform business rates)
What is the current UBR?
“51.2p standard
49.9 for small business”
What was the wider Boots Opticians strategy and how big was their portfolio?
…
What was the structure of the Boots property team?
…
Would the canopy have impacted anything and would an end allowance be warranted?
All the shops on the parade had a canopy and and there was no evidence to suggest that an allowance was warranted.
What is the process at the end of a lease renewal?
Engrossments, completion statement, singatures, SDLT and post completion matters
“There is a large range in the market rent. ERVs provided by surveyors are usually single figure?
“
I appreciate that in private practice you would present the client normally with a singular figure. However this was not a red book valuation as it was one for internal use. It was quite normal to present this range to our leadership team and my line manager and I could hold very open conversations when it came to budgeting and forecasting rents, depending on the evidence.
Why is this range of figures based on a 5 year lease?
- The evidence was such were five year leases. The likelihood was that my client would take a 5 year lease or a 5 year lease with a 3rd year break.
What is the benefit of a longer term to a landlord?
Longer term rental income, which means an increased investment value
Why is a longer term more important to some landlords than others?
Some in say a high value building want the longer term rental income, or where they spent a lot on fit out. Some may have a business model to offer flexibility to tenants. Or if a landlord wants to redevelop or relet they may only grant a short term lease.
Why did you feel comfortable agreeing to the landlords smaller areas? Should you not have shared your areas?
There was not a material difference. The other side were represented by a qualified chartered surveyor who was their to act in the best interest of his client and they were not a vulnerable individual who were not represented, so I do not feel that I was acting without integrity. I was acting in the best of my client and agreeing the slightly smaller areas was advantageous for my client.
Was the interim rent agreed net of rent free or was it headlining?
Headlining
Is it ethical to not have raised the sales floor valuation point? Why did I take this approach?
Was there evidence to support the higher rate on the first floor
Seek advice if vulnerable client
Good result for my client and would have been negligent to my client
” How has your client occupied an expired lease?”
Under s24 of the Landlord and Tenant Act 1954
Why would a Landlord/occupier serve a renewal lease notice? For what purpose?
- Either to determine the lease
- Or to offer renewal terms to the tenant
Did I consider using PACT? When would you use this and why?
…
If a s26 notice is served with a long notice but the current lease has already expired, when will interim rent be applicable from? How many months from now?
…
What were your options to proceed with the renewal if neither parties could agree renewal terms?
…
What happens if the landlord does not accept my Calderbank?
…
What does contracted inside the landlord and tenant act mean and which parts offer protection?
It means the tenancy has protection under parts 24-28 of the L & T 1954 Act and the tenant will remain holding over once the lease expries and then can only be brought to an end by the serving of notices past lease expiry. THe also have a statutory right to renew their lease.
What are the pros and cons of breaks and the risks around serving them?
…
Is there any governing advice as to structuring Heads of Terms?
The RICS Professional Statement Code for Leasing Business Premises
Why did you seek 6 months rent free at renewal?
The Landlord had already offered 3 months rent free. I sought an extra 3 months to further assist my client’s cash flow to support their continued occupation of the property. I knew that given that the landlord had already offered 3 months and with the market and vacancies as they were I know there was a strong chance they would accept this.
Is there any scenario where you would have considered serving a section 25 notice if you were the landlord, even though the property is overrented?
Serving a hostile notice if you had plans to occupy the property or if you had plans to redevelop the property, or any of the grounds of opposition
Tell me one mandatory/best practice item within Code for Leasing - September 2020 effective, 1st Edition, February 2020
- It’s objective is to improve the quality and fairness of negotiations
- Provides comprehensive recommendations on Heads of Terms to help make legal drafting more efficient
- Part 1 Introduction
- Part 2 Mandatory requirements
- Negotiations and Heads of Terms
- Appendix A & B HoTs template and guide
- Negotiations over the lease must be approached in a constructive and collaborative manner
- Must advise other party about the code and must advice they seek professional representation if they are unrepresented
What is a Joint tenancy?
“A legal arrangement where two or more people own/lease a property each with equal rights/obligations
- Rights of Survivorship
- Tenancy in common would pass to heir”an
Can you tell me about any case law surrounding break clauses?
…
What two other ways a tenant can end their lease other than at a break or a lease expiry?
- Surrender
- s27 notice
- Assign or sub let
How do breaks affect landlords’ investment value? Why?
Is it likely that a tenants going to break?
Multi national? Are they breaking lots?
Risk and yield? Assume void period? Don’t model break, put a higher risk yield on reversion?
Why do we have allowance when zoning?
Allows you to compare different properties with different physical properties to compare market value
What would you do if you had no comparable evidence?
…
Why did I use the zoning technique and what is it? HUT?
…
What other variables affect Zone A?
…
Why did I think the High Street and Touchwood Centre were prime?
…
Why is it harder to get information out of independent retailers?
They may be reluctant to or unwilling to share rental details as it ….
What other lease terms affect value at rent review and lease renewal?
- Rent review frequency and basis
- Alterations
- Use
- AGA
- Alienation
Did the solihull lease allow for residential use? If so would your approach to valuation differ?
Comes down to the comparable evidence, what are the uses of the other comparables? Same with office. Can it be let as a separate flat? It has no separate access therefore even if we wanted to we couldn’t let it. Therefore highest value would be retail ancillary. If others are letting it out as resi and we could then. We did have some retail flats and we applied a management discount.
Who was an independent on the parade that you contacted?
Livs Furniture
Does covenant strength play a part in valuation in a lease renewal?
Investment valuation yes - LR no
Do some investment valuations - hardcore/T&R
…
What would an organisation have to do if they wanted to store personal data on a computer?
- In line with GDPR/Data Protection Policies
- Stored securely
- Users data permission
Tell me about the Accrington lease renewal
…
Tell me about the Seaton dilaps claim
…
Tell me more about the issues experienced with Entain at NCH
…
Tell me more about the Access Licence at Bishop Stortford
…
Tell me about the Redcar renewal
…
Tell me more about the Corby lease renewal and access issue
…
Tell me more about the York access issue
…
Tell me about the LC2 rent review
…
Tell me about the Bromsgrove lease renewal
…
Tell me about Northallerton lease renewal
…
Tell me more about the Lowestoft Lease Renewal
…
Tell me more about the Droitwich rent review
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Tell me about RICS Guidance Note - Surveying safely: Health and Safety Principles for Property Professionals
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Tell me about RICS Professional Statement: RICS Property Measurement, 2nd Edition January 2018
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Tell me about Red Book Global Standards: RICS Valuation - Global Standards, November 2021 effective from 31st January 2022
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Tell me about RICS Professional Statement Code for Leasing Business Premises, 1st Edition Feb 2020, effective 1st September 2020
- Its objective is to promote fairness and quality of negotiations- It’s objective is to improve the quality and fairness of negotiations
- Provides comprehensive recommendations on Heads of Terms to help make legal drafting more efficient
Tell me about RICS Guidance Note: Code of Measuring Practice, 6th Edition May 2015 (excludes offices and resi)
…
Tell me about RICS Guidance Note: Commercial Property Management in England and Wales. 2nd Edition October 2011, effective from October 2011
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Tell me about RICS Guidance Note: Comparable Evidence in Real Estate Valuation, 1st Edition, October 2019
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What are Entains short, medium and long term goals?
What were Boots short, medium and long term goals?
What impact would the valuation have on mutual break clauses?
Essentially unprotected lease
Lose stat comp
Uncertainty
Is there comparable evidence/what are the comps showing
Britel Fund Trustees v B&Q (Valuation on interim rent around mutual break)
Hot topics
EPCS
Green Leases
MEEs
Low carbon construction
ESG
Covid
COP26
EWS1 forms
Grenfell & Fire Safety
IPMS
New use class order - hope to increase flexibility to prevent the high street from dying
Brexit - supply, staffing, skill shortage
New Rules of Conduct
Working from home
Ukraine - sanctions, energy, social human impact
Corporation taxation increase
New Japanese knotweed professional statement
Market uncertainty post Covid and during Covid
CDM 15
IFRS 16
Pandemic clauses
Coronavirus Act 2020 - moratorium on commercial property evictions
Expert Witness Guidance note is being updated
Red Book
What was Hart v Large
Negligence by a surveyor who carried out a home buyer survey- provides importance guidance on the scope of a surveyors duty when advising prospective purchasers
What is meant by the term passing rent?
Annual rent currently generated by the property and is recorded on the balance sheet
How do you compensate the tenant for improvements at the end of the lease?
- Lesser of increase in market value or cost of works
- Must have had landlord’s consent
- Must claim within 3 months to terminate
Explain the difference between surety and guarantor?
Surety - offer security for payment of debt
Guarantor - agrees to guarantee certain obligations
What is franchising?
The franchisee has the right to market or service using the trademark and logo of another business
What is the Boots Optician franchising model?
- Assessment of prospective franchisee
- Franchise agreement drafted detailing the commercial agreement between BOPSL and franchisee
- Either sub lease or joint tenancy arrangement which we would aim to make concurrent with the frachisee agreement
- New incoming franchisee we would assign the lease normally having built in provisions within the lease to allow transfer to a new franchisee without landlords consent
How would your inspection with retail and office properties?
How would your approach differ between different inspections?
What is the definition of pitch?
Pitch refers to the positioning of the property on a retailing parade, and how much footfall it receives, how prominent the units are, quality of the units, how desirable it is for a tenant to be located within that part of the parade
What should be included on the GOAD?
North point, copyright and scale
Assuming it was only a minor leak, how would your approach have differed in Redcar if the water had been coming in in a greater volume?
Asked our staff to raise a work order with our maintenance team to try and alleviate the flow of water within our demise, through use of a water catcher. If the store was flooding then a decision would have had to have been made to close the store. I would have put our insurers on notice.
Corporation street, Corby - what would have happened if the Landlord had said no to the inclusion of rights for emergency escape?
We would have had to carry out a renewed fire assessment to check the travel distances within the property and whether there was a suitable alternative, or whether staff were able to escape from the front of the building. If not, then part of the store would potentially be rendered unusable and our ability to utilise the shop affected. As we were at lease renewal I would have flagged this point to the landlord and would have argued that 0 value be placed on the part of the shop that was rendered unusable. Possibility for prescriptive easement? It may have been that the landlord would be open to agreeing a Fire Escape Licence in exchange for a licence fee, which would leave my client vulnerable if they ever wished to terminate the licence.
Why did you not measure LC2?
Where did you get comparable office evidence from for LC2?
- Landlord provided from other floors of the office
- Corroborated with tenants
- Spoke to agents we utilised
Why is zoning not appropriate for larger properties?
What information is contained within a SAP form?
- Landlord type/payee type
- Details of the new lease
- Details of the rent & interim rent
- Details of the property, property type, non-trading etc
Why did the section 26 notice bring the lease to an end on 13th August but interim rent was applicable from the 12th August?
Who should provide a lease plan? When is it registrable at the Land Registry?
If it’s a lease of 7 or more years
What is the professional statement relating to service charge?
Services charges in commercial property
What is a lease?
A binding contract in law which outlines the terms of the tenancy. between the parties, and their respective rights.
What does the Code say about break conditions?
Payment of main rent and giving up occupation of the property
When might a lease outside of the act be granted?
Pending a redevelopment, start up and serviced office accommodation
Tell me about rent deposits
- Take professional advice as to terms of rent deposit
- Held in a separate bank account
- Rent deposit deed
When is SDLT due?
- 14 days after the lease completes
- Can be complicated so would advise client to seek legal advice.
What should a comparable evidence be?
- Comprehensive
- Very similar
- Recent
- Arms length transaction
- Verifiable
What are the common issues with comparable evidence?
- Limited number of available
- A lack of up to date evidence
- Special purchasers
- A lack of identical comps
- Real Estate Markets are not transparent
Can you talk me through a rent review you undertook?
Droitwich …
Why didn’t you measure LC2?
…
What questions might I get around property management competencies?
Was there any service charge provisions? Was the canopy shared?
What other health and safety legislation are you aware of?
What is the importance of GDPR?
What are PDRs and the most recent use classes?
What is Entain’s corporate strategy?
Why did you serve a section 26 notice lower than your forecast? What terms would you look to issue and/or serve on?
Not binding, open offer, limited evidence, preferred to go in low - appreciate careful balancing act
Why was the lack of evidence telling?
Vacant property inspections - who was liable if there was an incident?
When were Heads of terms agreed? When did the new lease complete?
Did you agree new extensions?
18th October 2021 /
Has Farrow and Ball completed?
Is 24 Mill Lane and 10-12 Mill Lane (POA) still vacant? (Tom Howleys also vacant & M&S)
Under offer and to Let
What was the service charge?
Service charge provisions to remain the same in the new lease - £2,240.12
What was the Headline rate that you agreed?
£42.85 ZA
Why have you not included a an overall area figure? Why just ITZA?
What was the cost of extensions, issuing, serving?
What would you advise the tenant if the landlord objected?
Why did you inspect during Covid?
What was on the roof apart from the second floor? Did all the other tenants have the same set up?
How old was the property?
Where did you park?
Why have you not included first floor ancillary rates in comparable evidence schedule?
What is the S Frances v The Cavendish Hotel case 2018?
- Adds new factors for grounds f)
- Interim rent settlement
Tell me about the HPUT Trustee No 1 Limited & HPUT Trustee No 2 Limited v Boots UK Limited (County Court, May 2021)
What was the plant on the second floor?
What the terms and conditions?
Written confirmation of the conditions that have member/firms and clients have agreed shall apply to the service to be carried out;.
What is a valuation?
An opinion of an asset or value on a stated basis at a specified date
Could you have masked Zone B?
What is the age of the property?
1960s.. Mell square development was completed 1966
What was the construction of the property?
typical 60s building concrete frame with inbuilt brick facade. Steel re bars with concrete set around them. If water gets in then rust
What was the rateable value?
£36,000 April 2017
What was the EPC and when was it valid until?
EPC E-113 (March 2028)
What is the RICS dilapidation guidance note?
RICS Dilapidation Guidance Note 7th Edition September 2016
What’s the front cover of the Red Book?
Grey/black front cover - red ball
What are examples of fixed assets?
What are prime and secondary yields? Retail, office and industrial warehouse
City prime office 3/4%
Major regional office 5%
Prime warehouse 3%
Secondary warehouse 4%
Prime/Regional cities retail just over 6%
Secondary/tertiary retail 8/9%
CDM regs?
What is the dilapidation protocol?
- Landlord should serve a dilaps schedule in a reasonable time
- not more than 56 days after end of tenancy
- tenant should respond not more than 56 days after receiving, within reasonable time frame
What would you have done if client despite your advice had changed goalposts?
I would have strongly directed them to my advice but I am there to act in the best interests of the client and along as it was within the scope of services then I would have to act in their best interest. I would speak to the landlord and see if an agreement could be reached. If not and the only process was dispute resolution I would again advise them of the risks they were facing given my advice
Are you aware of what yields might command in Solihull?
Property for sale on the high street at 6.33% net initial yield which seems generous with a tenant with a lesser covenant than Boots
Example term and reversion Becky
What are the VPGAs?
VPGA 1 - Valuation for inclusion in financial statements
VPGA 2 - Valuation of interests for secured lending
VPGA 3 - Valuation of businesses and business interests
VPGA 4 - Valuation of individual trade related properties
VPGA 5 - Valuation of plant and equipment
VPGA 6 - Valuation of intangible assets
VPGA 7 - Valuation of personal property including arts and antiques
VPGA 8 - Valuation of real property interests
VPGA 9 - Identification of portfolios, collections and groups of properties
VPGA 10 - Matters that may give rise to valuation uncertainty
How would you carry out Term and Reversion or Hardcore
Term: Current rent x YP for N years @ i%
Plus
Market rent x ((YP in Perp @ i%) x (PV of £1 in N years @ i%
Purchasers costs?
Stamp duty @ prevailing rate%
Legal fees @ 0.5%
Agency fees @ 1%
YP, YP into perp and PV of £1 forumuale
YP = (1 - PV) / i%
YP into perp = 100/i%
PV of £1 = 1/(1+i%)^n
Criticisms around t&r and hardcore/layer -
- overrrented markets, lack of rack rented freeholds
- rental evidence may be poor
- conventional does not work well in unconventional situations
What are the differences between category A and category B office fit outs?
Blank canvas - shell and core, no lighting and facilities
Cat A - Finished with suspended ceiling, lighting, heating, raised flooring, HVAC
Cat B - Tailored tenant fit out, carpets, breakout areas, desks
What’s industrial spec A fit out?
- Steel portal frame with insulated steel cladding
- Minimum 8m clear eaves height with 10% roof lights
- Minimum 30KN/sq m floor loading
- Plastic coated steel profiled cladding with brick or blockwork walls approx to 2 meters
- Full height loading doors
- 3 phase electricity power
- 5%-10% office content and WC
- Services capped off
- Approximate site cover 40%
What are prime office rental rates in in London?
West end core over £100 sq ft down to £50 sq ft
Where is LC2? What was the rent? What were the hypothetical terms? What was the hypothetical term/residual term? What was the rent review date? What was agreed? Who was the landlord? How big was the office? Was time of the essence? Arbitrator or expert? What was the agreed square foot?
- 2nd Floor, Here East, Stratford, Queen Elizabeth Olympic Park
- Former Olympic press office
- 10 year term from Sep 2017
- Lease expiry Feb 2027
- Break and rent review 5th year
- 2,500 sqm / 26,000 sq ft
- Open market review 24th June 2022
- £976,596 - £34 psf
- LL triggered at upwards of £1,200,000 pa
- My market rent was £1,150,000
- Space in the office was vacant and had been for some time
- Evidence at 10 year with break at year 5 showing £40-45 net psf
- Time is not of the essence
- Arbitrator three months before the review date either party or president of the RICS
- Disregards - tenants occupation - any goodwill attached to the property due to the carrying of the tenants business
- Assumptions - Market Rent let in the open market willing landlord and tenant. 10 year term same terms of lease with 5th year rent review. Without premium of willing tenant, premises are ready for fit out for the tenant purposes. Covenants observed
What was the rent review date and assumptions on Droitwich? What was the hypothetical term? What was the rent? Was it an arbitrator or expert?
Droitwich rent - 33,000
Droitwich rent review date - Sep 2021
Time is not of the essence - yes
Was it settled - not settled
Lease expiry - September 2026
Would you expect a discount for an upwards/downwards review?
Yes it would attract a higher level of rent given the benefits to the tenant. Compare against the comparables
Recent case on PDR? What is PDR?
Permitted Development Rights - allows changes to certain buildings without the need to apply for permission. Came into play with the use class changes in 2020.
Can you name me some bye laws?
- Membership classification (FRICS…)
- Eligibility
- Procedures for entry
- Use of designation
- Contribution to funds
- Conduct
How would you measure a school?
You had the income on the subject, how would you determine its investment value?
Hardcore/layer…
How would you calculate the capital value?
Rent x YP formula
What would you look for on an inspection of industrial unit?
Blocked valley gutters, damaged cladding, contamination
Tell me about the UK RICS Red Book supplement and what the difference is?
Different type of damps?
Rising, penetrative, dry rot, wet rot,
Would you advise arbitrator or independent expert to your client to be included in the lease?
Depends on client and their objectives
Arbitrator is much more expensive
May depend on market sentiment
Tell me about RICS Surveying Safely
Tell me about RICS Professional Statement Real Estate Management
What would you measure in an industrial unit?
What are the criticisms of hardcore/layer and term and reversion?
What was the ownership structure?
IM Properties was the Landlord ownership vehicle and was bought by the council
Why did you serve a s26 notice despite your client wanting flexibility?
Based on my opinion of market rent my client could have secured a large reduction in rent and would be able to achieve a low interim rent. And it was my advise to the client that they look to act upon this and crystallise the interim rent by serving a s26 notice
What is the role of the management board?
Inform and over see RICS affairs under delegated authority from the Governing Council
What is the role of the standards and regulation board?
Oversee standard setting and upholding the professional standards through a global assurance and enforcement regime
When would you use each type of investment methods of valuations?
What does the governing council do and numbers?
Acts as the governing body. Sets the global strategy and ensures it fulfills requirements of royal charter
- Chair/President
- 6 strategy seats
- 15 market seats
- President elect
- Senior president elect
How would you inspect an office differently to a retail property ?
Tell me about Seaton - what was the size of the budget figure? What type of schedule was it? Had you been to the property? Was it open? When did the lease expire? Was there a schedule of condition? What was the tenant responsible for? Reinstatement provision? What was the repairing responsibility?
- Lease expiry October 2021
- Dilaps budget £25,000
- We’d vacated earlier in the year and closed the store at lease expiry
- Terminal schedule of dilapidations was received a few months before
- Eventually received a claim at £45,000/£40,000 claim
- Old property near the seafront with big old bay windows
- No schedule of condition
What would do with a dilapidation schedule?
- Read the schedule
- Note the size of the claim
- Check the lease to check the repairing responsibility, the demise and whether there’s a schedule of condition
- Check whether my client has any intention to carry out the works
- Check landlord’s intentions
- Advise my client about the time period they have to respond and the dilapidation protocols
- Advise they seek specialist advise from a building surveyor
Nottingham - how many floors did the occupy? What was their repairing responsibility? What other issues did they raise? What would you have done if they had refused the out of hours access?
- Ground floor
- Internal repairing only
- Block toilets due to old pipework/listed building
- Light bulb
- 136 staff
- c.1,400 sqm
- We had call centre staff/customer services needing to remain in place past normal working hours
- April 2018 until July 2028
- Access designated time to time by landlord
Tell me about the Bishop Stortford access licence? What access did they want? What was the damage to their roof? How did you determine it to be safe? Did you request undertakings? How much did you request? How long were the works for? Did you speak to the landlord about entering into the access licence? How much did you charge for a licence fee? Why?
- The neighbouring landlord wanted to use our flat roof to carry out repairs to the side of their property.
- The property was vacant and they were looking to relet
- They accessed it via a flat roof
- Requested undertaking for client’s legal fees and structural surveyor’s fees to make sure that the roof could support it
- Private practice would have requested fees for myself
- A schedule of condition was entered into
- LL had to reinstate
- Weeks work
- Had to have consideration to neighbourly relationships
- Licence fee was requested for £500
- All risk contractors and public liability cover was requested
- From memory liked to see at least £10 million pounds in cover
Tell me about the CDM regulations
What is the fire safety travel distance?
18 meters with only one escape route
- 12 meters high risk area
- 25 in low risk
advise client to get a fire risk assessment carrie dout by a speiclaist
What was Boots and Boots Opticians hurdle rate?
Accrington
- they came to the table but didnt accept - what would your advice have been to the client
- Who was the landlord
- What offer was the calderbank made at
- Not agree to another extension
- Issue and serve
- £20,000 rent
- £12,000 calderbank 5 with a 3
- Mixture of evidence/large amount of vacancies
- Landlord was the landlord of the Arndale centre
- I left
Had Boots witheld on arrears on Solihull? How may that have affected your advise if you were advising the landlord?
What would happen if your client did not meet the inspection requirements?
Leases sometimes contain clauses that say do not do anything ti invalidate the landlords insurance
What other databases did you assess?
SAP, Concerto, MRI, Landmark
Which property companies did you assess?
TSS
VPS group
ARM secure
When did you submit an application for interim rent?
Didn’t need to make one as it was being discussed. Advised my client to submit application after lease agreed.
How do you apply to PACT?
DRS2 form
How would you carry out Term and Reversion/hardcore/later at lease expiry?
What needs to be contained within a complaints handling procedure?
- Details of CHP issued to client
- Procedure must be quick, transparent, and impartially implemented
- Details of the Complaints Handling Officer must be stated as person to contact in first instance
- Strict timescales should be followed
- Stage 2 is independent redress and details of chosen redress cheme must be provided to the complainant such as the RICS dispute reoslution service
- RICS will step in if a member fails to respond
- Sole practioner must appoint a surveyor at another firm to act as their complaints handling officer
What is a special assumption?
Made by the valuer where an assumption either assumes facts that differ from those existing at the valuation date or that would not be made by a typical market participant in a transaction on that valuation date
If you were looking to sublet a property what health checks could you carry out on the tenant?
- All information , anything that creams out problematic
- 3 years of accounts
- Company house
- Have a look at but couldn’t advise
- Dun and Brad Street at Boots carried out
Why do Chartered Surveyors need to understand accounts and accounting principles?
- Understanding client’s financial position better
- Understanding for own business
What working stages do teams go through?
- Forming
- Storming
- Norming
- Performing
- Mourning
Can you name three of the mandatory requirements under the RICS Professional Statement service charges?
Can a tenant serve a s27 after a s25 notice?
No, you would just have to vacate and hand keys back on the date of expiry of the notice. Discontinue court proceedings if you issued and served
What is the difference between determining a rental value for a lease renewal compared to a rent review?
Rent review - valuation date and valuing the hypothetical lease set out by the rent review clause.
Lease renewal - value the terms of the new lease
Why didn’t you recommend utilising area and store managers?
Lack of training, not specialist. Take away form their day job
Who was liable in the vacant property inspections? / insurance?
Lack of duty of care then Boots would be liable
Depends on facts of case
Negligence
Occupiers liability act
If a property did not fit with my clients strategy what would you do?
Speak to my client. Advise. Make recommendations. Loss maker/ marginal. Entain office too big then speak to client
Rent at Redcar?
17,500 forecast 12,500. Lease expiry September 2020. Autumn 2021
How long had your client occupied Corby?
Corby expired Nov 2021. Delayed service of notice. Prescriptive easement
Northallerton expiry? Rent?
£23,500 - Market rent was £27,500
Expiry June 2020
Lowestoft s26/lease expiry
August 2021 - rent was going from £24,000 down to £13,000
Impact of the hypothetical term?
What are the different business vehicle types and what are the differences?
Sole Practitioner, Partnership, LLP and PLC
What is the Royal Charter?
Requires the RICS to promote the usefulness of the profession for the advantage of the public. Changes to bye-laws have to be ratified throuhg the government/privy council
How do you document a dilaps settlement figure?
Settlement document - full and final (preferred by Entain) or just settling dilaps
What do you do if the landlord has been unreasonable/delayed in his consent?
- Not much case law. Comes down to the facts and circumstances of the case
Tenant has greatest protection for alienation application - NTBUW Landlord and Tenant Act 1927
- Reasonable timeframe Landlord and Tennat Act 1988
- Burden of Proof is on the landlord to establish whether witholding consent is reasonable
- Lesser protection for request consents on alterations
- Advise to include as much information as possible in consent request
- LL witholds consent unreasonably then tenant can undertake improvement but is at risk if valid reasons for consent being withheld become known
- Seek a declaration that landlord consent has been unreasonably witheld in a summary judegement
What is the market value of the case study property?
What defect did you see on your inspection?
What was the case about breaks?
- Global Radio Services v Capitol Park - Global radio exercised a break. Court determined they had not given VP due to them ripping out fixtures and fittings. Court of Appeal disagreed and said VP normally means free of people, chattels and interests.
- Kuehne+Nagel and Ventgrove - tenant did not pay VAT and court ruled they had not correctly triggered the notice
- Marks & Spencer PLC v BNP Paribas Securities Services Trust Co [2015] - Marks and Spencers paid a quarter of rent in advance. Requested pro rata’d recovery of rent from break date and lost at Court of Appeal. Lease has specified no return of rent
What is the RICS?
A professional body designed to effect positive change the in the built environment
Does a s27 have to be in a prescribed form?
What is the maximum uninsured excess required by the RICS?
Liability of up to £500,000 = Greater of 2.5% of the sum insured or £10,000
Liability of over £500,000 = 2.5% of the sum insured
Eligibility for RICS Valuers Scheme?
Valuation competency to level 3. Or post qualification become a registered valuer after level 2
- RICS monitors valuers through annual returns
- Register information includes type of valuations undertaken, purpose of valuations, number of valuations
What are the RIBA project stages?
- Strategic definition
- Concept design
- Spatial coordination
- Technical design
5.Manufacturing and construction - Handover
7.Use
What CDD checks are required for money-laundering for different company types?
- PLC: London Stock Exchange Listing
- Publicly Accountable body: Government ownership/control
- Private Limited Company: Certificate of incorporation. Full name. Registered Number. Registered office. Business address. Directors/shareholders with more than 25%. Identification of a higher risk client.
-Private individual: Copy of passport or driving licence. Copy of a bank statement, credit card/utility bill to show evidence of addresses.
What % of the firm has to be members then RICS to then apply for regulation?
- If 50% of principals then it has to be regulated
- 25% then it can apply
What are the different business vehicle types?
- Sole practitioner: Practices on their own
- Partnership: Partners own all the business and have all the liability
- LLP (Limited Liability Partnership): Combines partnership and limited liability company. Bankrupt then unpaid debts are not the partners responsiblities
- PLC: Business exists as separate entity from the owners. Managed by directors owned by shareholders. Listed on stock exchange. Must be more open
Differences between UK national supplement and the Red Book?
What is secured lending?
Form of finance where you use an asset as a security for a loan
