Level 2 - Lawrence Hill Flashcards
Tell me about this property?
Leasehold car park outside of an office on the outskirts of Bristol city centre
It was 62 car parking spaces
Good tarmac car park with painted lines and security swing gate
What did you look for in your inspection?
I counted the spaces
Looked at the security and perimeter
Any damage
Looked at the wider location
Did you have regard to a hierarchy of evidence in your schedule?
I had regard to the RICS Comparable Evidence in Real Estate Valuation
I had most regard for OML, LR then RR
What is the RICS Hierarchy of Evidence categories?
Category A - Direct Comaprables: near-identical or similar, information levels, marketing details
Category B - General Market Data: Historic evidence, indices
Category C - Other Sources: Other real estate types or locations, background data (interest rates, stocks)
What comaprable evidence did you consider?
LL lease renewal on the estate 2 months prior
LR on a surfaced car park within 2 miles but fewer spaces
Season ticket prices on a nearby surfaced car park but analysed with caution due to an encompassing cost
What was your opinion of rental value?
Passing rent was £550, I believe it was in the region of £650 - £700 as rents had moved on based on comparables
When did the lease start and when was the review?
It was a 5 year lease, and this was a 3rd year review
2019 start
2022 review
How much had rents moved on?
I found evidence of LR to be a 20% uplift, with season ticket prices moving from lease commencement up to 30% uplift
Why was the Landlord evidence so revelent?
Direct comparable evidence on the estate.
Same location, specification, similar size
Similar review date
How many spaces was the Landlords evidence?
55 spaces
What is the standard lease terms of the LL evidence?
It was a 5 year lease with 3rd year review
What is direct evidence?
Evidence on the estate with similar characteristics
Category A Evidence
Why did you not negotiate on the 18% uplift?
Direct comparable evidence
Evidence I had was a greater uplift
If it were to do go to Arbitration, LL have favour
Did the whole market move 18%?
No, I felt some evidence showed a greater increase.
I did not have evidence of a smaller increase
Was it inside the Act lease?
No it was outside the Act
