L3 Inspections Flashcards
What was the significance of the metal hording
It showed that the unites where not inhabited or inhabitable and there fore they couldn’t have a cashflow
Explain your process upon discovering this block? (Guildford Damaged Block)
1) Examine Exterior taking photos and notes of Hoarding/ disrepair and scorch marks
2) I called my directors who had a copy of the inspections list and asked to make sure I was in the correct place
3) I called the HA to double check the data sent through was correct and inform them of my discovery
4) Followed the trail of defects however due to the hoarding and my lack of PPE I did not follow this internally
5) Upon return to the office I wrote up my notes in more detail
6) infirmed the client of my findings backed up with my notes and photos
7) Updated the client that this block would be removed from the valuation in accordance with the HA’s wishes
How did you document the damage? (Guildford Damaged Block)
Goformz is an inspection app my team uses
Allows me to make detailed note, save the exact location and take photos
How did you verify if the units were being let? (Guildford Damaged Block)
I spoke with the HA both on site and back in the office via phone and email with the relevant photos
- I wanted to establish if this was the correct block of flats
- If there was an income stream
Why request these units to be Nil Valued? (Guildford Damaged Block)
The assets are not suitable for the purposes of loan security
1) The units were not inhabitable
2) There was no income being generated from them
3) There was no planned remediation work
What is the significance of the block being under 6 stories (GL single block cladding remediation)
At the Time 2021
RICS Guidance Note Valuation of properties in multi-story, multi-occupancy residential buildings with cladding - April 2021 / had not come into effect
- Used to be that block under 18 meters would not need an EWS1
- Under RICS guidance this has changed to building of any heights with High pressure laminate cladding
- or blocks of 5 stories or more with combustible cladding, linking balconies
This has stayed in place even after a Government press, stating they should not be requested below 18m release in Dec 2021 as the RICS wants to safeguard public interest
What has changed in Fire Safety policy since this valuation (GL single block cladding remediation)
What specific information did you require from the borrower regarding the fire safety information? (GL single block cladding remediation)
Fire Safety Email
- Total number of units within the block
- The height in meters
- Freeholder or leaseholder
- If there is cladding present
- Cladding type(ACM/MCM or HPL)
- Balcony construction and configuration
Why remove value on a unit by unit basis? (GL single block cladding remediation)
- Makes the most sense in regards to my cashflow
- Value without the remedial limitation
- Once I have the end value I then remove the remedial costs
- Unit by unit shows the lender the exact units with issues
- Total will be the exact remedial amount
How did the presence of combustible cladding affect the over-all valuation of the portfolio? (GL single block cladding remediation)
- Combustible cladding needs to be remediated
- These costs are deducted from the end valuation on a unit by unit basis
- This decreases the overall value of the portfolio for loan security purposes
What impact did the fire risk have on the property values? What process did you follow? (GL single block cladding remediation)
- I knew that remedial works were set to take place
- I had a value of this remedial works on top of which I added a slight risk premium, these works hadn’t started yet, current rising interest rates, material cost and cost of labor can all effect the cost
- Agreed with the client and borrower at 5% of the remedial costs (£2,500,000) + £125,000
As such when deciding on a value from comparable evidence I didn’t need to discount the properties as the value would be deducted from the end valuation
