Last few...

Question 1

What alternative method may have been used to value an AHA tenancy?

Answer 1

• Profit Rent Method (Greenbank v Pickles & Top / Bottom Slice)
• Special Purchaser Basis

Question 2

How would you assess the Productive and Related Earning Capacity of a holding?

Answer 2

• Related Earning Capacity can only be assessed once the Productive capacity has been identified.
• Produce a Gross Margin for each enterprise identified.
• Practical appraisal fo the holding.
• Standard frameworks and guidance in Nix, ABC & Farm Business Survey.
• Related Earning Capacity = Tenants expectation of the profit.

Question 3

How would you value a tenants improvement under the ATA 1995?

Answer 3

Value of the improvement to the holding.

Question 4

What did the TRIG reform in 2006 do?

Answer 4

Introduced a Upper Limit Cap to tenants improvements if agreed.

Question 5

What is an implied Wayleave / Easement?

Answer 5

One that is not written down / made by deed

Question 6

What is Rent Smart Wales Governed by and what are the requirements?

Answer 6

Housing (Wales) Act 2014
- All Landlords must regsiter with RSW.
- All Landlords managing their own properties must obtain a licence.
- Registration and licences are valid for 5 years.

Question 7

What information paper assisted you when valuing the Grade II listed building?

Answer 7

Valuation of Historic Buildings (RICS infomation paper)

Question 8

How much was the full planning fee for the Conversion of the Ag building?

Answer 8

£460

Question 9

What year was RICS Surveying Safely, Guidance Note Published?

Answer 9

Feb 2019

Question 10

What information do you require when registering a buyer at Auction?

Answer 10

• Proof of ID (Passport or driving licence)
• Proof of Address (Bank statement or utility bill dated within last 3 months)

Question 11

How can debtors impact a business?

Answer 11

• Cause Cash Flow problems
• Threaten the viability of a business

Question 12

When selling land/property what RICS document do you refer to?

Answer 12

Auctioneers Selling Real Estate (incorporating Common Auction Condition) 2018. Professional Statement.

Question 13

What is profit à prendre?

Answer 13

A right to take natural resources from another person’s land. e.g. Grass, Water, Timber.

Question 14

How long is Permitted Development Valid for?

Answer 14

3 years

Question 15

What would you do if there was a shortage of comparables?

Answer 15

• Extend search parameters
• Extend time frame
• Comment on material uncertainty
• Skills, expertise & jugement (heavily relied upon)
• Guide Prices

Question 16

How was the state of repair of the Grade II Listed property taken into account within the valuation?

Answer 16

• Cost of renovating the property in poorer condition up to the standard of the better building
• Further adjustments to refelct uncertainties over the cost and time taken to do works.
• Relied upon technical ability, experience and judgement of valuer
• IN LINE WITH COMPARABLE EVIDENCE IN REAL ESTATE VALUATION 2019

Question 17

What did you include in the TOB for the FBT?

Answer 17

• Introduction
• Identification of Firm
• Identification of Client
• Fee
• Fee settlement
• Scope of Services
• Hours of Business
• Conflicts
• Confidentiality
• Copyright
• Clients money
• Complaints Handling Procedure
• GDPR
• Termination of Agreement

Question 18

What insurance did the Licencee need at Dulas Mill?

Answer 18

• Contents insurance
• Employees Liability (if necessary)

Question 19

What does FRI stand for?

Answer 19

Full repairing and insuring

Question 20

Was VAT charged on the Rent?

Answer 20

No! Advised by accountant to not “opt to tax”.

Question 21

How did you determine Yields for Term & Reversion?

Answer 21

• Comparables
• RICS & RAU Rural Land Market Survey

Question 22

If your firm has any surplus client money in a client account, what is best practise?

Answer 22

• ensure all efforts are made to trace the owners of the money.
• hold in a client suspense account.
• hold surplus money for at least three years.

If, after three years, thenowner of the money has not been found it must be donated to a registered charity.

A receipt must be obtained for this transaction so should a true claimant come forward to collect the money it can be made available to them.

The receiving charity should offer the donating firm an indemnity to enable the firm to recover a donation in the event of a claim.

Question 23

What are the upcoming changes to ASTs in Wales?

Answer 23

• As of 1st December 2022 all ASTs will automatically become Occupational Contracts (Secure or Standard)
• Governed by Renting Homes (Wales) Act 2016
• All existing tenancies must have paper work in place by 31st May 2023.
• Tenants will be known as Contract Holders.
• s8 and s21 notices will be abolished.
• Minimum 6 month term and 6 month notice.

Question 24

Main Heads of Terms within the FBT?

Answer 24

• Landlord
• Tenant
• Holding
• Term
• Start date
• Rent
• Rent Review
• Rent Days
• Entitlements
• ## Break Provisions

Question 25

Why was the Red Book updated?

Answer 25

• To reflect changes to the International Valuation Standards 2022
• Clarifying certain sections of the existing Red Book.

Question 26

Why did you use a Yield of 1.5% for the Term?

Answer 26

• Perceived low risk and rate of return on the proposed investment. (YP = Years purchase).
• Used relatively low yield to reflect the certainty of receiving an annual rent at a similar level of the existing rent due to the stringent statutory terms of AHA Tenancy.
• Yield was determined by analysing comparable transactions.
• Rural Land Market Survey

Question 27

Why was a yield of 3% used for the Reversion?

Answer 27

• Due to the unknown state of farming in 17 years’ time and potential for succession.
• There is greater risk and this is reflected in a yield of 3% for the reversion.

Question 28

What 3 elements have to be deducted from the value of comparable lettings when valuing a AHA Tenancy?

Answer 28

• Scaricty
• Marriage Value
• Premium Value