L2 Inspection Flashcards
What criteria lead you to choose a 10% sample?
Agreed within the scope of work and signed off in the Terms of Engagement
This is industry standard when dealing with social housing portfolios as;
- The portfolios are normally very large and inspecting each would be both costly and time consuming
- The units are normally of a very similar standard to those on the same road
How does a 10% inspection sample effect your decision making when it comes to establishing value?
I don’t just base my comparable against the phots taken during the inspections but also against my wider understanding of Social housing stock
- generally of a lower internal quality
- therefore the 10% internal sample helps my understanding of the stock
How does a 10% inspection sample effect your decision making when it comes to establishing the assumptions?
It would be ideal to have a better idea of the whole stocks internal condition however;
- Social housing stock is very homogenous
- I can gain an accurate understanding of upkeep costs from Registered Providers Global Accounts files
- on top of the properties I would have seen due to the inspections it gives me a good understanding of the costs I can assume for the cashflow
What factors are noted during inspection?
Area
- Local amenities
- Parking
- Power stations / lines
- Transport
- General location demeanor (well-kept untidy)(public use / private use)
External
- Construction type
- Roof type
- Brick / block or concrete and steel
- Cladding / balconies / insulated render
- Any noticeable issues
Internal
- Condition
- Bathroom spec
- Kitchen spec
- Flooring (carpets / wood / laminate)
- Bed rooms and persons per room
- Issues
- Damp / mould
- Damage
Can you elaborate on the term High-rise?
A block of flats that is at least 18 meters or 7 floors
- my team uses 6 stories as an indicator of caution of a high-rise as some of these blocks can be 18 meters in height
- Adds an extra level of assurance for the loan
What information did you seek from the Registered Provider?(2 blocks over 6 stories)
1) What is the exact height of the building and number of floors
2) Which floors are the units on
3) If there is any form of cladding / timber balconies
4) What type of cladding
5) Has a Fire Risk Assessment been conducted and if so what was the result
6) Is there an EWS1 form and if so what rating
What is a Fire Risk Assessment?
A careful look at the premise by a qualified professional (Suitably competent person) from a fire prevention perspective
- Legal requirement under Regulatory reform Order 2005
- Updates made to the Building Safety Act 2022 to reform this order (Oct 23)
It is not however normally appropriate to us as an indication of the level of risk of fire at a building to inform lending decisions
What is PAS9980?
Assessing The external Wall fire risk in multi-occupied residential buildings
It is the methodology for a fire risk appraisal and looks in particular at external wall construction and cladding of existing multistory and multi-occupancy residential buildings
- Fire Risk Assessment External Wall (FRAEW)
- Not intended as an alternative to EWS1 forms yet
What is an EWS1 form?
External Wall System Fire Review Certificate
It is for lending purposes and administered by the RICS
Declarers a building in one of 5 categories
When is an EWS1 form needed?
Needed for;
- Any building over 6 stories where there is a curtain wall of cladding /
timber balconies
- Any residential building that has High Pressure laminate cladding
- Not a legal requirement but needed for mortgages
- Last for 5 years (unless substantial changes are made to the
building)
What is the RICS Guidance for EWS1?
Guidance Note - Valuation of properties in multi-storey, multi-occupancy residential buildings with cladding April 2021
