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APC WG > Mock Interview Raised Questions / Submission Questions > Flashcards

Mock Interview Raised Questions / Submission Questions Flashcards

1
Q

GIS - What is a shapefile?

A

a shapefile is a geospatial data file that records the shape, size and location of an item that has a place in the world, allowing to also add additional attributes to record the data that clients are interested in

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2
Q

GIS - How is using GIS beneficial, e.g. for N-Gen?

A

Allows me to provide my client with a visual representation of data and information surrounding a scheme. It is easy to navigate and user friendly, and the ability to present all the required information within shapefiles, improves the efficiency of a scheme.

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3
Q

GIS - What is GIS?

A

A GIS (Geographical Information System) is a Geospatial system used to record, manipulate and display data

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4
Q

Measurement - What are the main types of measurement?

A

GEA - Gross External Area

GIA - Gross Internal Area

NIA - Net Internal Area

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5
Q

Measurement - What measurement did you use when measuring Towngate Farm? And why?

And how was this measured?

A

GIA - Gross Internal Area

The measurement was for valuation purposes, and is also the measurement used for the pricing provided by the Building Cost Information Service.

Measured to the internal face of the perimeter walls, excluding the width of the outside walls.

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6
Q

Inspection - What is a risk? What is a hazard?

A

Hazard - anything that could cause harm

Risk - combination of:
- likelihood of occurrence
- severity of outcome

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7
Q

CP and Comp - What is the no-scheme rule and what is the Point Gourde principle?

A

This is where the effect of the scheme underlying a CPO is required to be disregarded in assessing compensation.

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8
Q

CP and Comp - What heads of claims are expected in a utility / National Grid scheme?

A

Disturbance only

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9
Q

CP and Comp - What heads of claims are expected in a claim surrounding a CPO?

A

Land Taken
Disturbance
Loss Payments
Severance & Injurious Affection

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10
Q

CP and Comp - Interests in table 2?

A

Lesser interests, people with rights of way, easements, mortgages, restrictive covenants.

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11
Q

Access and Rights - What act is a s.6 served under?

A

Northwest Water Authority Act 1977 -

NOT the Water Industry Act 1991!!!

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12
Q

Access and Rights - Who are relevant interests? E.g. when serving a notice?

A

Anyone with a legal interest in the land concerned, such as land owners and leaseholders

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13
Q

Valuation - What are the basic principles of a DCR valuation?

A

The depreciated replacement cost method of valuation is calculated by identifying the cost of building the equivalent building, reduce by a factor to reflect its age and level of depreciation, plus the cost of purchasing the land.

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14
Q

Valuation - How did you establish the yields used for the Meco valuation?

A

I established a yield of 10% through discussions with local agents for open-storage yields in the location.

This was used for the term.

I then increased the yield to 11% when calculating the reversion to reflect the increase risked.

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15
Q

Valuation - You mentioned on the Meco valuation that no deductions were required as it was on FRI terms. What deductions would usually be required?

A
  • Maintenance & repair costs
  • Service charges / Running costs
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16
Q

Valuation - What are the mandatory reporting requirements?

/

You mention you are aware of what is required in a Red Book Valuation.

Where is this in the Red Book and what is required in a Red Book Valuation?

A

Set out in VPS 3

Sets out what should be included within a Red Book Valuation, e.g.

  • Valuer & Client Details
  • Assumptions and Special assumptions
  • Purpose and basis of valuation
  • Valuation date
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17
Q

Valuation - What PI do we have, e.g. for the Bank valuation?

A

Bell Ingram have professional indemnity insurance in place with a limit of indemnity worth £10,000,000.

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18
Q

Access & Rights - Where is a necessary wayleave in the Electricity Act 1989?

A

Schedule 4 of the Electricity Act 1989

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19
Q

What has been abolished from the AHA Succession process / Eligibility test?

A

The commercial test

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20
Q

What is a firms minimum limit of indemnity?

A

Depends on the firms turnover in the previous year:

£100,000 or less = £250,000
£100,001 - £200,000 = £500,000
£200,001 and above = £1,000,000

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21
Q

What is a firms minimum run-off cover?

A

A minimum of £1,000,000 in all for a period of 6 years.

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22
Q

What is Professional Indemnity Insurance?

A

Insurance which covers the cost of compensating clients for loss or damage resulting from negligent services or advice provided by a business or an individual.

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23
Q

What is Run off cover?

What is the minimum policy requirements / minimum run-off cover for an RICS accredited company?

A

professional indemnity insurance cover provided for the past liabilities of a business once it has ceased trading.

A minimum of £1,000,000 in all for a period of 6 years.

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24
Q

What is Public Liability Insurance?

What is Bell Ingram’s Policy cover?

A

Insurance which covers the cost of claims made by members of the public for incidents that occur in connection with business activities.

£10,000,000

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25
Q

What is employer’s liability?

What is Bell Ingram’s cover / Indemnity limit?

A

Insurance which covers the costs of employee claims for illness or injury caused by their work due to employers’ negligence.

£10,000,000

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26
Q

How do you carry out a comparable valuation?

A

I obtain good comparable evidence through discussions with local agents and rightmove + to allow me to provide an accurate indication of value.

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27
Q

When is an investment valuation used and how do you carry out an investment valuation?

A

An investment valuation can be used where there is an income stream to value, such as a property which is leased out.

Methods include Term & reversion, and Discounted Cash Flow.

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28
Q

When is a DRC valuation used and how do you carry out a DRC valuation?

A

It is used to value properties where this is no active market, such as a mosque.

The depreciated replacement cost method of valuation is calculated by identifying the cost of building the equivalent building, reduce by a factor to reflect its age and level of depreciation, plus the cost of purchasing the land.

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29
Q

Where is secured lending in the Red Book?

What’s a forced sale?

What’s the marketing period?

A

VPGA 2

A forced sale is where whoever obtained the loan cannot pay the debt, and is forced to sell the property to pay this back.

The marketing period is commonly assumed to be between 90 and 180 days.

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30
Q

What goes into Land Designations?

A

Found on Magic Maps

These can include:
- Nature Reserves
- SSSI’s
- Green Belt

31
Q

What goes into a planning report?

A
32
Q

How does a property’s characteristics affect a valuation?

A

Characteristics such as the size, condition, and location can have an impact on a valuation.

E.g. Bigger property with more bedrooms can increase it’s value

Being in a prime location can increase it’s value

If the property is in poor condition with lots of defects, this can reduce the value of a property.

33
Q

How are NPG claims calculated?

A

They are calculated by establishing the value of the property, multiplying this by a percentage which is based on what equipment they have and its distance from the property, and then multiplying this by 50% which is an industry standard.

34
Q

What is a wayleave?

A

A terminable agreement linked to the owners or occupiers, rather than the land itself.

35
Q

What is an easement?

A

a permanent agreement linked to the land itself rather than the owner or occupier.

36
Q

What is the difference between a wayleave and an easement?

A

A wayleave is a terminable agreement with the owner or occupier, not with the land itself and is not binding on the successors.

An easement is a permanent agreement against the land itself, is on the land title and is binding with the successors.

37
Q

Why do NPG look to secure a wayleave rather than an easement?

What are the reasons NPG would look to secure a wayleave or an easement?

A

NPG do look to secure easements as well, but it depends on the value of the offer provided.

Any offer above £7,000 is reviewed to decide whether the client wishes to secure a wayleave or an easement.

A wayleave has a financial advantage in comparison to an easement, but is attached to the owner and once the property is sold, the new owner is entitled to enter into a new wayleave agreement.

An easement costs more than a wayleave, but is against the property and secures rights to the asset for the period of the term (NPG is 20 years).

I am aware off other distributers who are now looking to mainly obtain easements rather than wayleaves to prevent the occurrence of repeat claims.

38
Q

What restrictions were in place at the Prescott valuation?

A

A restrictive covenant which did not allow for any development on top of the asset.

39
Q

Why was the Prescott valuation a Red Book if it was for internal advice?

A

Because the client requested for it to be in line with the Red Book.

40
Q

Do you think using the comparable method of valuation was the correct method when carrying out the Prescott valuation?

Then why did you carry out an investment valuation when calculating the expected increase in profit?

And why did you assume a developers profit of 15-20%?

A

I do - there was good comprehensive comparable evidence available for the purpose of the instruction.

This was part of wider commentary to inform the client of the developers position in regards to their negotiations.
For example, if the developer is expected to make a profit worth £100,000, but the offer made by my client was worth £80,000, it is unlikely the developer would consider proceeding.

I was working alongside a senior colleague who specialises in this area of valuation and advised on these percentages.

41
Q

How could lifting the restriction affect the valuation?

Could the rest of the development not affected by the restriction have been developed on?

A

Lifting the restriction would allow for the planning to be approved, therefore increasing its value from it’s existing use to its value as a development plot.

Without the restriction being removed, the development could not obtain planning in line with its proposed application. Therefore planning would not be approved and no development could have taken place.

42
Q

What purposes have I written valuation reports in line with the Red Book for?

A
  • Purchases
  • Secured Lending
  • Internal advice
43
Q

What external factors could have an effect on a valuation?

A
  • The economy
  • The location
  • Planning permission
  • Market conditions
  • Land designations
  • Flood risk
44
Q

How is a Secured Lending Valuation different to a purchase valuation?

A
45
Q

In the Cookstool Farm Secured Lending Valuation, did the equestrian use effect the value of land? And why?

A

The equestrian use increased the value of the land do to the nature of it’s market, usually commanding higher prices.

46
Q

What comparables did you obtain for the secured lending valuation? And how did you come to the price per acre?

A

I obtained comparable evidence for both agricultural land and equestrian.

Agricultural achieved approximately £15,000 and Equestrian achieved approximately £30,000.

We advised on a value being closer to £20,000 to reflect it’s current use as good agricultural land but with the ability to be converted to equestrian.

47
Q

What is good security against a loan?

A

Where a loan is a good and secure investment for the bank

48
Q

What do you look for when inspecting the land and what goes into an inspection report?

A

When inspecting land, we look for:
- If there is any crop on the land / the use of the land
- the condition of the land
- If there are any defects
- The condition of gates, fencing, hedges

An inspection report includes:
- A date of inspection
- Who is carrying out the inspection
- The property name and address
- A description of the land
- The use of the land
- The condition of the land
- Note any defects

49
Q

If you had inspected the property 6 months ago, and you are asked to carry out a valuation again, do you need to inspect the property again?

A

Not always necessary, for example, if it was my clients land and there was no changes.

But most of the time, yes I would re-inspect the property.

50
Q

Was the Devoll Meco valuation a Red Book valuation?

Why?

A

No

It was for internal use and for negotiation.

51
Q

How did you value the Devoll Meco land?

A

I did a Term and Reversion Valuation.

52
Q

Did you back up the income figures provided by the landowner for the Devoll Meco valuation?

A

I collated my own comparable evidence for rental values for open-storage properties in the area which was used as the basis for my calculation of the reversion.

53
Q

How did you establish the yield for the Devoll Meco valuation?

A

I established a yield of 10% through discussions with local agents surrounding yields for open-storage in the area.

54
Q

What is the difference between an All Risks Yield and a Net Yield?

A

Unlike an All Risks Yield, A Net yield incorporates some aspects of non-recoverable costs in operations.

A Net Yield yield does not forecast the future performance of the property, whilst an All Risks Yield does.

55
Q

Are you aware of any other legislation other than the Water Industry Act and the Electricity Act? And how do they differ?

A

I am aware of the Gas Act although I have not been involved in any instructions surrounding the act.

I am aware that similar to the electricity act, rights are limited in comparison to the water industry act, and that access arrangements are usually obtained through voluntary agreement.

56
Q

What is the process of obtaining rights over land?

A

Either voluntary agreement, or where possible, serving of notice.

57
Q

What statutory rights have you used when negotiating accesses?

A

s.168’s and s.159’s of the Water Industry Act 1991.

58
Q

With the National Grid line, why did you need to carry out land referencing, and what does that give you?

A

To establish up-to-date landowner details.

Gives me accurate landowner information surrounding a scheme.

59
Q

What are accommodation works?

A

measures implemented to reduce the impact of the works carried out.

This can include passing places, stock-proof fencing, new access roads.

60
Q

When working on National Grid, what would you have done if the land did not have a wayleave or an easement in place?

A

I would look to obtain access through voluntary agreement.

I could look to agree a wayleave or easement to obtain the rights.

I could also secure a licence over the land.

61
Q

Tell me about a claim you negotiated and settled on the National Grid scheme.

How did you calculate this?

How did you settle the fees?

A

A claim was submitted for loss of grazing as a result of the works.

I measured the area that was affected and then I was able to obtain a price per acre through sources such as agricultural agents and the Agricultural Budgeting and Costing Book.

Fees were based on the distributers own fee scale.

62
Q

What was the existing asset at Utkinton WwTW?

A

A Waste Water Treatment Works

63
Q

If you had served the s.168 but the landowner had refused access, what could you do?

A
64
Q

When serving a notice, who is a qualified interest?

A

Anyone with a legal interest in the land, such as the owner or occupier.

65
Q

Why could you not serve notice to secure the compound at Utkinton WwTW?

Then why were you able to serve the s.168 for the Topographical surveys?

A

The works did not involve a relevant pipe.

The extent of the land required for the topographical surveys did involve a relevant pipe.

66
Q

What was included in the license for Utkinton WwTW? What terms were agreed?

A
  • Licensee and Licensor details
  • Licence period
  • Licence Fee
  • Extension period
  • Termination
  • Reinstatement
  • A plan

Terms agreed included a weekly payment of £350 per week for a 12 month term.

67
Q

What rights did you have over the land with the horses on SPEN?

A

We had rights through a wayleave, including the field with the horses.

68
Q

Why was post & rail fencing required for the SPEN AG landowners land?

A

The horses had never been exposed to electric fencing so this was not sufficient.

Livestock fencing was not sufficient as the horses can get tangled up.

Post & Rail was the only fencing to ensure the health and safety of both the horses and the contractors.

69
Q

Could you have not served notice to secure the rights to the land at Duddon?

A

No as there was no relevant pipe.

70
Q

Why was the additional license required at Duddon?

A

The purchase would not have completed within the timescales provided by the project. Therefore, the additional licence obtained the rights to the purchase area until the purchase completed.

71
Q

What was included within the HOT’s for Duddon?

A
  • Purchaser details
  • Vendor details
  • Agents details
  • Consideration
  • Boundaries
  • Vacant possession
  • Fees
72
Q

What is the process of a Discounted Cash Flow valuation?

A

estimates the money an investor might receive from an investment.

you calculate this by provide estimates of future cash flows, establish the interest rate, and then put this into the DCF formula.

73
Q
A

APC WG (14 decks)

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