Leasing and Letting Flashcards
What factors effect value?
Supply and demand
location
condition
market conditions
lease term
permitted use
Access and parking
operation costs
What RICS publications are there relating to leasing and letting?
RICS Code for Leasing Premises PS - Practical and ethical guidance, comprehensive set of heads of terms, checklist.
Property Agency and Management Principles effective from January 2025 - consolidated the below:
The Real Estate Agency Brokerage 3rd Edition PS - Ethical standards, transparency, best practices for agreeing a lease etc.
UK Commercial Real Estate Agency PS - Ethical and professional standards, fairness and transparency, disposals, acquisitions and ending instructions.
What is the statutory framework governing business leases?
The Landlord and Tenant Act 1954 Part 2
Section 25 - Landlord notice to end the lease, either hostile or friendly
Section 26 - tenant notice requesting a new lease
Section 27 - tenant notice to end lease
Section 28 - Interim continuation pending renewal.
Section 29 - Court application for renewal/refusal
Section 30 - Ground to oppose a new lease.
What are the common law precedences relating to business leases?
Street vs Mountford
The hall marks of a lease:
exclusive position, certainty of term regular payment of rent, control of services.
When would you advise a client to exclude the provision of the landlord and tenant act in a lease?
When the client wants certainty over regaining possession of a building, has development plans or requires flexibility in the lease.
What should be included within marketing particulars?
Property name and address
size of site and property
marketing points
description of property and location
photos
maps
schedule of accommodation
details of business rates
terms
legal costs
VAT
Business rates
EPC
Agent details
what should be included within heads of terms?
Property details
Landlord details
tenants details
Rent
Type of lease
Tenants works
Deposit
Lease length, breaks and rights
Assignment and subletting
Repairing obligations
Alterations and use
Insurance
Lease management (Service charge)
Business rates and utilities
Legal costs
solicitors details
Timing and other matters
what is MEES?
Minimum energy efficiency standards.
Current minimum is E
Set to increase by 2027 to C and 2030 B
How did you market the property at 58 Church street in Cromer
This was a retail unit, small retail areas currently fitout as a coffee shop.
Ideal for similar use. Marketing was geared towards this.
Why did you advise your client at station road worsted to split the property?
Local Knowledge
Market demands
Increase in net rent
Why did you advise your client at Burlingham business centre to split the site?
Market demands, reduce number of occupiers for management. Quickest way to produce income for the client.
why is the misrepresentations act important for commercial surveyors?
It governs liability for false statements made during property transactions. Protects clients from misleading information and ensures surveyors provide accurate information.
Can leads to legal claims, financial losses and reputational damage.
What AML checks do you carry out?
Client due diligence, verify the client
Check source of funds
Ongoing monitoring
Report if suspicious to the National Crime Agency.
What legislation covers AML?
Proceeds of Crime Act 2005 - covers money laundering offences, asset recovery and confiscation of criminal legislation
The Money Laundering Regulations 2017 - sets compliance requirements for businesses, including due diligence, record keeping and reporting obligations
What is the legal limited of a marketing board?
Under the Town and Country Planning regulations the legal limit is 2m2 for a single board, 2.3m2 if joined at an angle.
