Level 2 - Cirencester

Question 1

Tell me about this property?

Answer 1

Location - Trade park in Cirencester
Spec - detached unit, steel portal frame with brcik work in part and profile metal cladding, office space on top floor, 3 roller shutters
Eaves - 7m
Age - 1980s
Size -12,000 sq ft

Question 2

What was the rent review provision?

Answer 2

Review Date (December 2020), Open market, term equal to unexpired residue of term (5 years), Independent Expert

Question 3

What was the hypothetical term?

Answer 3

Term equal to unexpired residue of term
5 years

Question 4

What was the rent?

Answer 4

The passing rent was £5.50 psf

Question 5

What was your key comparable evidence?

Answer 5

I had evidence on the estate around the time of review for a larger unit at £5.20 (LR) and a smaller unit at £6.05 (RR).
Little comparable evidence of OML - post-dated evidence at higher rent but should be disregarded

Question 6

What is a Calderbank offer?

Answer 6

Tool for influencing costs and automations as losing party will have to pay other sides recoverable costs.
It is an offer to settle, marked without Prejudice save as to costs
Calderbank v Calderbank 1975

Question 7

What does Without Prejudice Save as to Costs mean?

Answer 7

Without Prejudice - privileged information where cannot be relied upon in court
Save as to costs - the offer can be considered when awarding costs

Question 8

What are the key points in an Independent Expert?

Answer 8

They have detailed knowledge of the market and can make own investigations
bound by terms of the lease
They only have power over their own costs

Question 9

Is there any RICS guidance on Independent Expert?

Answer 9

RICS Guidance Note on Independent Expert Determination 2016

Question 10

What is the difference between independent expert and expert witness?

Answer 10

Expert witness is an impartial and objective surveyor providing evidence in a court, their duty is to the court and must believe facts upon which they rely
Independent Expert can conduct own research and provides an outcome as determination

Question 11

What did you settle at before Independent Expert?

Answer 11

I settled at £5.70 psf

Question 12

How did you negotiate this settlement?

Answer 12

I felt a small increase over the remaining term would be more cost effective that going through the independent Expert process.
C&W would have an hourly charge to produce documentation for the Expert, as well as risk of costs.
Therefore, recommended small settlement which was agreed

Question 13

What is included in a RRM?

Answer 13

Name of LL and T
Address of property
Date of Lease and RR
COnfirmation of new rent
Signed and Dated by both parties