Mark H Mock Interview Flashcards
What did the illustrative masterplan entail
-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
Why woudlnt a Lidl foodstore align with the masterplan
- 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.
What is the sequential test
Evaluating whether the need for main town centre uses can be accommodated on available town centre sites.
-suitability and viability of site
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
What might a s106 obligation include
-to make development acceptable in planning terms
-obligations directly relate to development
-tree planting
-road improvements
What sections specifically in the Estate Agents Act do you refer to
-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
Estate Agents Act 1979
What is the purpose of this act
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.
What are the principles of the estate agency act 1979
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
What legislation do you as the landowner and the agent have to adhere to when selling land to ensure information within particulars is accurate
-estate agency legislation
is the estate agents act 1979
Misrepresentation act 1967
-false statement made by a party which has the effect of inducing the party to purchase
Is the misrepresentation act a criminal offence
-No - its actionable as tort (not criminal)
Whats the penalty if you are in breach of the misrepresentation act
-vendor/agent can be sued for damages or contract re-scinded
At Netherton, what sort of information was contained within the informal tender offer letter
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
What methodology did you adopt when valuing retail park
-investment
Why was it your strategy to adopt a blended yield for the park
-All rack rented (market rent) but not over rented
What criteria do you apply when determining yeild
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
What are the principles of a term and reversion
Mark Answer:
2 elements
1.Term
2. Reversion
- 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
What is the investment method of valuation
income stream
-rental income is capitalised (yield) to produce capital value
What is the conventional investment method
-MR is capitalised to produce a capital value
What investment method would you adopt if you were dealing with an over rented property
-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
Aware you do Lidl bespoke development appraisals. But can you talk me through a standard development appraisal
-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
Whats Lidls target rate of return on a development appraisal?
Where would you find an EPC rating
-gov website
-online register
How long are EPCs valid for?
-10 years unless building is altered
What recommendations might you see on a typical EPC
-improvements
How do you keep data secure in your business
-held securely
-password protected location
Who policies data management
ICO
Information Commissioners Officer
What legislation is in place for data protection
-UK GDPR and Data Protection Act 2018
What happens if there is a data security breach
-Must be reported to ICO within 72 hours
What fines are associated with Data Protection
-4% of global turnover
-or 17.5m (whichever is greater)
What would you do if you lost personal data
-Must be reported to ICO within 72 hours
What are the main differences between IMPS 3 and NIA
-Perimiter measurements are taken to IDF
-Columns are included
Are you allowed to depart from IMPS for offices
only if a client provides a written instruction to use an alternative
What are the necessary RICS steps in order to set up your own practice
-inform RICS
-appoint reasonable principle
-PII
-Complaints handling
-Money handling
ensure completion of an online RICS annual Return at the end of each year
What money laundering procedures would you have in place
-nominated money laundering officer
-ID
What sort of ID would you request from a client in relation to money laundering
-passport
-verify persons of significant control
