Introduction Flashcards
How did you determine the property was on a ‘prime pitch’?
Footfall, tenant mix, rent, transportation links
How do you know when it was constructed?
historic map
Did you notice any defects on inspection?
Nothing specific
How did you ensure safety whilst on inspection?
Risk assessment
Talk me through the inspection process.
Prior - H&S
Location - background check
External
Internal
What was the internal specification?
Walls and ceilings - plastered and painted
Wooden floor throughout exept the basement
What observations did you make about the surroundings?
Footfall, vacant rate, new openings (Chipotle)
Why did you measure on NIA?
standard of practice
How did you zone?
measured to 20ft
Why do we zone?
as the front of retail units are more valuable due to the visibility for consumers
Can you explain how / why you adopted a 2.5% premium for the forecourt?
standard practice in the area
Why did you zone the way you did? industry standard is not A/10 for basement space.
standard practice in the area
Is the property in a conservation area?
yes, Queen’s Gate
How would a conservation area impact the property?
planning restrictions
protected to a certain degree from development
higher maintenance costs
lengthily planning process
How would flooding impact the property?
insurance premiums
suitability for loan security
difficulty to sell
What would you have done if the EPC was below the threshold?
advise the client
borrower should improve for next lease expiry
What planning documents were you looking for? How would something onerous impact your valuation?
What did you advise your client in relation to your findings on creditsafe?
i advised my client to seek advice from a chartered accountant, but that the Creditsafe rating was a C, although, over the past three years the financials had been improving…..
Did you consider the creditsafe result to have a big impact on your valuation?
No
How would you have valued the property if it received ground rent?
take into consideration the income within the valuation
How would it have an impact if the leasehold had less than 80 years?
Might gain from lease extension premium
This might increase the value
Potential for lease extension - future income
What was the original rent?
£85,000 rising to £90,000 in November 2023
What is a mansard slope roof?
