Leasing and Letting L3 Flashcards
2/3 Park Street. You advised a lease as it was immediate income, would a sale not do this? Tell me about the inspection.
I advised that a letting the property would provide a regular income, and improve capital value in the event they subsequently decided to sell.
2/3 Park Street. Did you advise on anything about the property following inspection? How did the client take your advice?
I advises that many tenants would probably want remove the internal partitions and this.
The LL was nervous about the disruption this would likely cause.
2/3 Park Street. Your advice about the type of tenant, is this ethical to suggest one user of another?
Yes, provided it doesn’t discriminate based on a protected characteristic.
2/3 Park Street. With this advise, are you limiting the market?
Was there a market for this type of client in the area?
The advice was intended to act as a preference to suit LLs interests, rather than an explicit restriction on use.
Good market for professional services, we had put in 3 solicitors in the previous 2 years.
Farm Shop, Gagingwell. Tell me about the different types of users you advised on.
There was a planning restriction that it should be used to sell a majority of products manufactured in West Oxfordshire. I advised that this would still appeal to a wide variety of F&B operators, manufacturers, and producers.
Farm Shop, Gagingwell. How did you come to the conclusion that due to its location it would be a slow start?
Remote area, poor access, would have to be a destination location, ie build a reputation which takes time.
Farm Shop, Gagingwell. The advise on the two users, how did the client take this as they were presumably losing some potential income?
Their interest was in the long term viability of the operator and the site and so were happy to weather the short term income sacrifice.
Farm Shop, Gagingwell. Would you always suggest an established business be seen as more favourable?
No. This can be nuanced advice and based on circumstances. Always careful not to stray from expertise/competence.
Did you advise on the type of lease, inside or outisde the act? Tell me why you advised this.
Outside
- Type of development and client
- Retain control
- Only concede protected tenancy don’t give it away
