Mark H Mock Interview

Question 1

What did the illustrative masterplan entail

Answer 1

-granted consents
-predominantly industrial (circa 30k through approved and outline)
-resi
-3,000sqm of ancillary floor space of former use class A1/A4/C1 and sui generis

Question 2

Why woudlnt a Lidl foodstore align with the masterplan

Answer 2

• in breach of Knowsley Local Plan Core Strategy Policy SUE2 (Sustainable Urban Extensions) whereby a planning permission will only be granted where they are consistent with a single detailed master plan, the same wording is included within the Earlsfield Park Supplementary Planning Document (SPD).
  -However, this would need to be balanced against this is the fact that the existing consent allows in excess of 2,500sqm of retail floorspace to be delivered in principle.

Question 3

What is the sequential test

Answer 3

Evaluating whether the need for main town centre uses can be accommodated on available town centre sites.
-suitability and viability of site

Question 4

Didnt take into account finance rates or yields
Or finance rates of borrowing money

Do you not think its an appropriate variable to have because your losing interest as your taking money out of business

Q - WHY DO YOU NOT INCLUDE FINANCE RATES IN APPRAISAL

Question 5

What might a s106 obligation include

Answer 5

-to make development acceptable in planning terms
-obligations directly relate to development
-tree planting
-road improvements

Question 6

What sections specifically in the Estate Agents Act do you refer to

Answer 6

-When instructing agents I have regard to…
-S18
-clarity as to the terms of agency work
-specify costs (brochure) and fees in advance and in writing
-specify nature of agency and selling rights to be agreed
-confirm no conflicts of interest

Question 6

Estate Agents Act 1979
What is the purpose of this act

Answer 6

The act regulates estate agency work
Its purpose is to make sure that estate agents act in the best interests of their clients, and that both buyers and sellers are treated honestly, fairly, and promptly.

Question 7

What are the principles of the estate agency act 1979

Answer 7

7 principles:
1. Clarity as to the terms of agency (s18)
2. Honest and accuracy
3. Agreement and liability for costs
4. Openness regarding personal interests (s21)
5.Absence of discrimination
6. Legal obligation to tell the client about offers recieved
7. Keep clients money separate

Question 8

What legislation do you as the landowner and the agent have to adhere to when selling land to ensure information within particulars is accurate

Answer 8

-estate agency legislation
is the estate agents act 1979

Question 9

Misrepresentation act 1967

Answer 9

-false statement made by a party which has the effect of inducing the party to purchase

Question 10

Is the misrepresentation act a criminal offence

Answer 10

-No - its actionable as tort (not criminal)

Question 11

Whats the penalty if you are in breach of the misrepresentation act

Answer 11

-vendor/agent can be sued for damages or contract re-scinded

Question 12

At Netherton, what sort of information was contained within the informal tender offer letter

Answer 12

Agent invited “best and final” bids requesting
-required date and time of offer submission
-solcitor details
-finance arrangements
-conditions
-timescales
-wording that vendor reserves the right to not accept the highest or any offer made

Question 13

What methodology did you adopt when valuing retail park

Answer 13

-investment

Question 14

Why was it your strategy to adopt a blended yield for the park

Answer 14

-All rack rented (market rent) but not over rented

Question 15

What criteria do you apply when determining yeild

Answer 15

Risk is a major factor
-quality of park and cov
-use of the property
-lease terms - even though 3 year lease expiry, it was felt it could be re-let at MR
-voids
-liquidity - ease of sale
-prospects of rental and capital growth

Question 16

What are the principles of a term and reversion

Answer 16

Mark Answer:
2 elements
1.Term
2. Reversion

1. Term = known rental income until the rent review. YP until x years until rent review at ARY
   2.Reversion = YP in perp at higher yield to reflect risk.

Then Present Value of £1. That reversionary value backed today and add the 2 together

-Under rented
-Term is capitalised until next renewal or lease expiry at an initial yield
-Reversion to MR valued in perpetuity at a reversionary yield

Question 17

What is the investment method of valuation

Answer 17

income stream
-rental income is capitalised (yield) to produce capital value

Question 18

What is the conventional investment method

Answer 18

-MR is capitalised to produce a capital value

Question 19

What investment method would you adopt if you were dealing with an over rented property

Answer 19

-layer/hardcore method
-income flow divided horizontally
-bottom slice = market rent
-top slice = rent passing less Market Rent until nexlease event
-higher yield applied to top slice to reflect additional risk

Question 20

Aware you do Lidl bespoke development appraisals. But can you talk me through a standard development appraisal

Answer 20

-GDV
-Less Total Development Costs
construction costs - 5% contingency
consultant fees (10-15%) of total construction costs
Planning fees
known land value
cost of acquisition
cost of finance (%)
Marketing costs/fees

LESS DEVELOPERS PROFIT 15% ON COSTS

Question 21

Whats Lidls target rate of return on a development appraisal?

Question 22

Where would you find an EPC rating

Answer 22

-gov website
-online register

Question 23

How long are EPCs valid for?

Answer 23

-10 years unless building is altered

Question 24

What recommendations might you see on a typical EPC

Answer 24

-improvements

Question 25

How do you keep data secure in your business

Answer 25

-held securely
-password protected location

Question 26

Who policies data management

Answer 26

ICO
Information Commissioners Officer

Question 27

What legislation is in place for data protection

Answer 27

-UK GDPR and Data Protection Act 2018

Question 28

What happens if there is a data security breach

Answer 28

-Must be reported to ICO within 72 hours

Question 29

What fines are associated with Data Protection

Answer 29

-4% of global turnover
-or 17.5m (whichever is greater)

Question 30

What would you do if you lost personal data

Answer 30

-Must be reported to ICO within 72 hours

Question 31

What are the main differences between IMPS 3 and NIA

Answer 31

-Perimiter measurements are taken to IDF
-Columns are included

Question 32

Are you allowed to depart from IMPS for offices

Answer 32

only if a client provides a written instruction to use an alternative

Question 33

What are the necessary RICS steps in order to set up your own practice

Answer 33

-inform RICS
-appoint reasonable principle
-PII
-Complaints handling
-Money handling
ensure completion of an online RICS annual Return at the end of each year

Question 34

What money laundering procedures would you have in place

Answer 34

-nominated money laundering officer
-ID

Question 35

What sort of ID would you request from a client in relation to money laundering

Answer 35

-passport
-verify persons of significant control