Mock Interview Raised Questions / Submission Questions Flashcards
GIS - What is a shapefile?
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
GIS - How is using GIS beneficial, e.g. for N-Gen?
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.
GIS - What is GIS?
A GIS (Geographical Information System) is a Geospatial system used to record, manipulate and display data
Measurement - What are the main types of measurement?
GEA - Gross External Area
GIA - Gross Internal Area
NIA - Net Internal Area
Measurement - What measurement did you use when measuring Towngate Farm? And why?
And how was this measured?
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.
Inspection - What is a risk? What is a hazard?
Hazard - anything that could cause harm
Risk - combination of:
- likelihood of occurrence
- severity of outcome
CP and Comp - What is the no-scheme rule and what is the Point Gourde principle?
This is where the effect of the scheme underlying a CPO is required to be disregarded in assessing compensation.
CP and Comp - What heads of claims are expected in a utility / National Grid scheme?
Disturbance only
CP and Comp - What heads of claims are expected in a claim surrounding a CPO?
Land Taken
Disturbance
Loss Payments
Severance & Injurious Affection
CP and Comp - Interests in table 2?
Lesser interests, people with rights of way, easements, mortgages, restrictive covenants.
Access and Rights - What act is a s.6 served under?
Northwest Water Authority Act 1977 -
NOT the Water Industry Act 1991!!!
Access and Rights - Who are relevant interests? E.g. when serving a notice?
Anyone with a legal interest in the land concerned, such as land owners and leaseholders
Valuation - What are the basic principles of a DCR valuation?
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.
Valuation - How did you establish the yields used for the Meco valuation?
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.
Valuation - You mentioned on the Meco valuation that no deductions were required as it was on FRI terms. What deductions would usually be required?
- Maintenance & repair costs
- Service charges / Running costs
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?
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
Valuation - What PI do we have, e.g. for the Bank valuation?
Bell Ingram have professional indemnity insurance in place with a limit of indemnity worth £10,000,000.
Access & Rights - Where is a necessary wayleave in the Electricity Act 1989?
Schedule 4 of the Electricity Act 1989
What has been abolished from the AHA Succession process / Eligibility test?
The commercial test
What is a firms minimum limit of indemnity?
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
What is a firms minimum run-off cover?
A minimum of £1,000,000 in all for a period of 6 years.
What is Professional Indemnity Insurance?
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.
What is Run off cover?
What is the minimum policy requirements / minimum run-off cover for an RICS accredited company?
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.
What is Public Liability Insurance?
What is Bell Ingram’s Policy cover?
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
What is employer’s liability?
What is Bell Ingram’s cover / Indemnity limit?
Insurance which covers the costs of employee claims for illness or injury caused by their work due to employers’ negligence.
£10,000,000
How do you carry out a comparable valuation?
I obtain good comparable evidence through discussions with local agents and rightmove + to allow me to provide an accurate indication of value.
When is an investment valuation used and how do you carry out an investment valuation?
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.
When is a DRC valuation used and how do you carry out a DRC valuation?
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.
Where is secured lending in the Red Book?
What’s a forced sale?
What’s the marketing period?
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.
What goes into Land Designations?
Found on Magic Maps
These can include:
- Nature Reserves
- SSSI’s
- Green Belt
What goes into a local plan?
- Land designations
- Planning applications
How does a property’s characteristics affect a valuation?
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.
How are NPG claims calculated?
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.
What is a wayleave?
A terminable agreement linked to the owners or occupiers, rather than the land itself.
What is an easement?
a permanent agreement linked to the land itself rather than the owner or occupier.
What is the difference between a wayleave and an easement?
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.
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?
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.
What restrictions were in place at the Prescott valuation?
A restrictive covenant which did not allow for any development on top of the asset.
Why was the Prescott valuation a Red Book if it was for internal advice?
Because the client requested for it to be in line with the Red Book.
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%?
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.
How could lifting the restriction affect the valuation?
Could the rest of the development not affected by the restriction have been developed on?
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.
What purposes have I written valuation reports in line with the Red Book for?
- Purchases
- Secured Lending
- Internal advice
What external factors could have an effect on a valuation?
- The economy
- The location
- Planning permission
- Market conditions
- Land designations
- Flood risk
How is a Secured Lending Valuation different to a purchase valuation?
Adhere to the guidance under VPGA 2
- Although it is in line with the Red Book, it is based on a template provided by the bank with all the information they require set out.
In the Cookstool Farm Secured Lending Valuation, did the equestrian use effect the value of land? And why?
The equestrian use increased the value of the land do to the nature of it’s market, usually commanding higher prices.
What comparables did you obtain for the secured lending valuation? And how did you come to the price per acre?
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.
What is good security against a loan?
Where a loan is a good and secure investment for the bank
What do you look for when inspecting the land and what goes into an inspection report?
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
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?
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.
Was the Devoll Meco valuation a Red Book valuation?
Why?
No
It was for internal use and for negotiation.
How did you value the Devoll Meco land?
I did a Term and Reversion Valuation.
Did you back up the income figures provided by the landowner for the Devoll Meco valuation?
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.
How did you establish the yield for the Devoll Meco valuation?
I was generally aware of yields through market updates, but I also established market rents and market value of open-storage properties in the location to calculate the yield, which generally came in at around 10%.
What is the difference between an All Risks Yield and a Net Yield?
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.
Are you aware of any other legislation other than the Water Industry Act and the Electricity Act? And how do they differ?
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.
What is the process of obtaining rights over land?
Either voluntary agreement, or where possible, serving of notice.
What statutory rights have you used when negotiating accesses?
s.168’s and s.159’s of the Water Industry Act 1991.
With the National Grid line, why did you need to carry out land referencing, and what does that give you?
To establish up-to-date landowner details.
Gives me accurate landowner information surrounding a scheme.
What are accommodation works?
measures implemented to reduce the impact of the works carried out.
This can include passing places, stock-proof fencing, new access roads.
When working on National Grid, what would you have done if the land did not have a wayleave or an easement in place?
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.
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 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.
What was the existing asset at Utkinton WwTW?
A Waste Water Treatment Works
If you had served the s.159 but the landowner had refused access, what could you do?
Apply for a magistrates warrant
When serving a notice, who is a qualified interest?
Anyone with a legal interest in the land, such as the owner or occupier.
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?
The works did not involve a relevant pipe.
The extent of the land required for the topographical surveys did involve a relevant pipe.
What was included in the license for Utkinton WwTW? What terms were agreed?
- 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.
What rights did you have over the land with the horses on SPEN?
We had rights through a wayleave, including the field with the horses.
Why was post & rail fencing required for the SPEN AG landowners land?
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.
Could you have not served notice to secure the rights to the land at Duddon?
No as there was no relevant pipe.
Why was the additional license required at Duddon?
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.
What was included within the HOT’s for Duddon?
- Purchaser details
- Vendor details
- Agents details
- Consideration
- Boundaries
- Vacant possession
- Fees
What is the process of a Discounted Cash Flow valuation?
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.
Case law: Street v Mountford
Street v Mountford (1985)
Case law which distinguished between a lease and a licence.
Was held that the licence agreement was actually a lease.
Case law: St Johns College v Thames Water
Held that the water authority was to pay compensation based on 50% of the land value with vacant possession.
Case law: Horn v Sutherland
Established the Principle of equivalence
Case law: Pointe Gourde Quarrying & Transport Co v. Sub-intendent of Crown Lands (1947)
Established the Pointe Gourde principle / No scheme principle.
What CPD webinars did you attend regarding Compulsory Purchase and compensation, and what was the learning outcome?
Recently attended a “CPO - Talking Heads” webinar.
There was discussion surrounding the RICS’ update to the “Surveyors advising in respect of compulsory purchase and statutory compensation” professional standard, which will become effective from the 23rd December 2024.
Lots of discussion surrounding fees and what is to be considered as reasonable in relation to the works required.
What is the guidance for compulsory purchase and compensation?
Surveyors advising in respect of compulsory purchase and statutory compensation.
What is no-scheme principle / Point Gourde principle?
This is where the effect of the scheme underlying a CPO is required to be disregarded in assessing compensation.
What is a schedule of interest?
A document which sets out the different land interests affected by a CPO.
What notices did you issue in regard to Compulsory Purchase and Compensation?
- Land interest notices for unregistered land.
- Notices of making
What did you do when responding to the formal objections? Can you give 1 example?
We reviewed the objections to understand why the objection was made and to see if we could get them removed prior to the Inquiry.
One company objected as the proposed works would have blocked the access to their site. We identified that they had another access which they were unable to use due to restrictions by the council. We wrote to the council to see if they would remove such restrictions for the duration of the CPO. They agreed to this, and the objection was removed.
Can you run through a claim you have recently negotiated?
What went into the heads of claim?
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.
Heads of claim included:
- Disturbance
- Loss of crop
- Fees
What section of Water Industry Act covers compensation?
Compensation is assessed in accordance with schedule 12 of the Water Industry Act 1991
- Freehold depreciation
- Crop loss
- Reinstatement
- Disturbance
How did you know the claim was going to be high value when acting on the National Grid scheme?
High valued claims can be identified through the following:
- long access routes / a number of towers
- potential crop loss
How would you have dealt with an over inflated claim when acting on the National Grid scheme?
- I would review the claim and ask the claimant to evidence the claim, e.g. quotes and invoices.
- For elements that can’t be evidenced, I would obtain my own prices through discussions with agricultural agents or the Agricultural Budgeting and Costing Book.
- This would then be used to negotiate and settle the claim at a fair and reasonable amount.
What is a blight notice?
This is when a landowner serves a blight notice on the acquiring authority seeking them to purchase the land at open market value.
How were powers for CPO obtained by HS2?
It was an Act of Parliament.
Was there safeguarding in place for that property for HS2?
Are you aware if the safeguarding has been removed due to the cancellation?
No safeguarding for commercial property’s.
In regard to residential property’s, safeguarding has been removed between the West Midlands and Crewe.
What formal notice needed to be served to allow the claimant to make a claim (HS2)?
A compulsory Purchase notice
What is a book of reference? What is the purpose and what is included?
A document which sets out the different land interests affected by a CPO.
Interests include freehold interest, leasehold interests, rights of way, easements, restrictive covenants.
What rights does a landowner have in respect to compensation in CPO?
Compensation where land is taken
Compensation where no land is taken
What is the difference between a CPO schedule and a book of reference?
Book of reference is not submitted as part of the CPO process.
Book of reference acts as a land referencing schedule. which compared to the CPO schedule, includes contact details, and the extent of full ownership rather than rights specific to the CPO.
What landowner details did you need to establish for the CPO schedule? And what additional interests / relevant details?
owners, occupiers, tenants, easements, rights of ways, restrictive covenants.
Why was land registry details over 3 years old not sufficient?
These were not up-to-date or accurate.
In the instance a parcel of land was unregistered, and you received no information from the site notice, what would you do?
I would continue to make efforts to try and establish the land ownership details and if not possible, rights to the land would be captured through the CPO.
