Level Two - Example Two (Brighton)

Question 1

What is the difference between IPMS and NIA?

Answer 1

IPMS3 vs NIA
- Measured to internal dominant face (IDF)
- No exclusions for restricted height (1.50m)
- Columns are not excluded
- Measurement taken to midpoint of partitioning
- Covered balconies and galleries measured but stated separately

Question 2

How did you maintain confidentiality? (when asking who the asset may appeal to).

Answer 2

Act with caution when discussing the property with agents unless it is openly marketed.

Question 3

What would you do if it wasn’t openly marketed (when speaking to agents)?

Answer 3

I wouldn’t specify the price.

Question 4

Why did you use NIA over IPMS when applying £ per sq ft rate?

Answer 4

Other properties were measured and reported on this basis, therefore, used it to be consistent and compare them correctly.

Question 5

Why did you underpin your opinion of Market Value with the investment method?

Answer 5

Demand may also come from investors so considered it on that basis too. Cross checked but no primary regard to it. Ensuring the reversionary yield made sense.

Question 6

What capitalisation rate did you apply?

Answer 6

6.74% reversionary yield. 6.34% equivalent.

Question 7

What capital value did you apply?

Answer 7

£301 psf

Question 8

What is secured lending?

Question 9

What is secured lending and what requirements under the red book do you need to carry out?

Answer 9

VPS3 and … COI VPGA2 and additional reporting requirements
Market value not fir value