Lists and Scenarios Flashcards
Talk me through your rent review
MERCURY - Unit 8, 4,726sq ft NIA, 1,721sq ft ITZA
Passing rent - £90,000p.a. = £52psf ZA
Market rent - £40,000p.a. = £23psf ZA
Received instruction from the client
Checked competence
Conflict of interest check
Formalised the instruction by agreeing the terms of engagement and fee basis in writing
Read the lease/RR clause (legal pack)
Hypothetical term – 10 years (current lease term)
Assumptions
1. Fit for immediate occupation and use
2. Market rent will be payable after expiry of any rent free (fitting out)
3. No work that has been carried out by the tenant has reduced the rental value
4. Premises damaged or destroyed – reinstated
5. T has complied w existing lease covenants
Disregards
1. Ts previous occupation
2. Any goodwill
3. Certain improvements
4. Any licences belong to T
Time not of the essence – Burnley v Cheapside (no express wording)
Inspected and measured the unit
Completed my research into the market rent (deals on the same estate and Liberty/Brewery of similar size units were my best comps
When obtaining comparable evidence I looked at:
* Rent review patterns
* Assumptions/disregards
* User
* Other lease terms having an effect on value
* Incentives (if a new letting comparable) such as rent-free periods
Came to my opinion of value considering the hierarchy of evidence
Triggered the review
Negotiations – upwards only - not required – nil increase)
Documented by solicitor in a Rent Review Memorandum
Dispute resolution – arbitrator
Talk me through your lease renewal
MERCURY - Unit 2A, 320sq ft NIA, 244sq ft ITZA,
Passing rent - £15,000p.a. = £61psf ZA
Market rent - £20,000p.a. = £82psf ZA
Inside the Act.
Received instruction and look to understand client objectives
Checked for competence
Conflict of interest check
Terms of engagement – signed and agree fee with complaints handling procedure
I reviewed the lease to check the lease terms/expiry date and informed my client that the lease was nearing expiry (more than 12 months before expiry).
Performed an inspection of the unit/local area, measured it and gathered comparable evidence from the surrounding market.
Drafted a valuation report
I found the market rent to be higher than the current passing rent and subsequently made a recommendation to my client to serve a friendly section 25 notice to terminate the existing lease.
Served this at 12 months prior to the term expiry to start the new tenancy the day after the previous one expired. This was done at the earliest opportunity so that the tenant didn’t pay an interim rent if the lease was not agreed. 12 months as I could not see the market rent increasing.
This notice laid out terms of the new lease combined with statement that indicates the landlord is not objecting to granting a new lease.
Following discussions with the landlord and tenant, a new 5-year lease was agreed and documented by solicitors
Talk me through you TAW
Talk me through your break notice
Talk me through your onboarding of new property
GRAND ARCADE - Upon commencement of a new instruction at the Grand Arcade in Cambridge, I advised the Client on the onboarding process for transferring lease data from the previous managing agent to be loaded to the accounting system that Workman use. My first step was to obtain a tenancy schedule downloaded from the previous Agent’s system which was password protected. The Tenancy schedule was then provided over email whilst I ensured the password was given through a different method over the phone. This Tenancy schedule was checked against every lease at the shopping centre and approved by a senior member of the team. Once approved, I liaised with our accounts department to raise the charges on the system. Prior to the charges being raised, I approved a final prelist which laid out all the charge amounts, charge descriptions and corresponding dates.
Talk me through your new management report
MARLANDS - Upon undertaking an instruction with a new Client, I advised on how the management report should be drafted and used in monthly meetings. I created a bespoke report which has sections for arrears, Tenant applications, EPCs, rates, turnover top ups and a Tenancy schedule which tracks net operating income. This information is cross-referenced with our accounting and electronic filing systems. The report is only issued to relevant parties, password protected and kept live on a cloud rather than emailed. This enables my Client to see any changes to the document in real time and forms a basis for my recommendations in the meetings.
Talk me through insurance information
MARLANDS - At the shopping centre I manage in Southampton, I provide insurers with updated property information prior to each annual renewal. The information I provide includes occupancy details, use, annual rent, and annual service charge in comparison to the previous year’s renewal. This helps to ensure accurate billing to Tenants and our Client for any voids they are liable for. This initial exercise is carried out approximately two months before renewal, and we have a final review circa two weeks before the renewal date to ensure the Tenant occupancies are correct. The insurers can then obtain renewal terms and provide us with annual certificates for cover
Talk me through lease data input
ROYAL EXCHANGE - Any time a new Tenant takes occupation at the property, I complete data input forms using the completed legal documents including leases, side letters and rent deposit deeds. This ensures that the property management accounting system is kept up to date and accurate. This process also involves an approval system whereby the data is checked by a senior member of the team prior to uploading on the system.
Talk me through illegal change of use.
MERCURY - I undertook an inspection of a retail unit in the shopping centre that I manage in Romford and became aware that the Tenant was carrying out beauty treatments which were not permitted in the lease due to another exclusivity clause. The Tenant trading in this way would have exposed my Client to legal action being taken against them, the Tenant
with exclusivity terminating the lease or reputational damage in attracting and retaining tenants in the future. I therefore made a recommendation to my Client that we contact the Tenant to advise them that they did not have consent and were in breach of their lease. Once
the Tenant had been contacted, they stopped carrying out the prohibited beauty treatments.
Unique Beauty - Asked the tenant to rectify and they did, Other options could have been s146 Law of Property Act 1925 breach of covenant – 6 months to rectify. Injunction, damages are other options.
Talk me through illegal subtenant
PRINCES MEAD - I performed an inspection of a retail unit I manage in Farnborough and suspected that an illegal Subtenant was trading at the property which would have constituted a breach of the lease. The potential illegal Subtenancy had the ability to incur substantial legal costs for my Client, create a loss of control over the Property, and potentially void the insurance policy. I explained this to my Client and recommended they seek legal advice to clarify their available options. The Solicitors served a section 40(1) notice under the Landlord and Tenant Act 1954 to
establish the party in occupation which gave the Tenant one month to respond with the required information.
Spoke to tenant with no response, issued section 40, found to be illegal subletting. Subtenant took a new lease.
Talk me through inspecting for lease compliance
442 NEWMARKET - I have performed a Landlord’s annual inspection of an FRI unit in Cambridge. Before the inspection, I ensured that I read the Tenant’s lease and associated documents to completely understand the letting terms. This was to ensure that the Tenant’s lease covenants had not been breached in any way which could include disrepair, an illegal subtenancy or change of use
Talk me through vacant unit inspections
LEEGATE - During the monthly inspections of a shopping centre I managed in Leegate, I was instructed to inspect vacant units, Tenants’ demises and common areas. The vacant units are inspected on a weekly basis by an
external party, and they provide reports which I send on to the Client and insurers. Upon inspecting the let units, I always note down any breaches of Landlord and Tenant covenant like unlicensed alterations or disrepair. Once all the inspection notes have been collated and documented, I send through to my Client along with photographs and
recommendations
Please could you provide me with an example as to when you have acted with honesty and integrity at work? (Rule 1)
Please could you provide me with an example as to when you have ensured you are maintaining and acting with competence at work? (Rule 2)
Please could you provide me with an example as to when you have provided good quality and diligent service at work? (Rule 3)
Please could you provide me with an example of when you have treated others with respect and encouraged diversity within the workplace (Rule 4)?
Please could you provide me with an example of when you have taken responsibility and have acted in the public interest (Rule 5)?
