My Submission Examples

Question 1

What range of figures would have been an acceptable rent at Unit 63 Sharston? What was achieved?

Answer 1

£4,850 p.a. to £5,550 p.a.
£4,950 p.a. was achieved.

Question 2

What assumptions were in the rent review clause for Unit 63 Sharston?

Answer 2

Vacant possession
No premium
Subject to provisions of the lease
15 year term with 5 yearly reviews
covenants fully performed
No works that could diminish rental value

Question 3

What disregards were in the rent review clause for Unit 63 Sharston?

Answer 3

Any goodwill
Occupation of the premises
Tenants improvements
Adverse effects of temporary works on adjacent properties.

Question 4

What was the passing rent at Unit 63 Sharston?

Answer 4

£3,300 p.a. based on 7.5% of market rent

Question 5

In accordance with the lease, how was the rent for Unit 63 Sharston reviewed?

Answer 5

equal to previous rent or 7.5% or market rent, whichever is the greater

Question 6

Describe Unit 63 Sharston Industrial Estate

Answer 6

Large warehouse used for commercial laundry. Steel portal frame, with brick walls, pitched roof. Ancillary offices, flat roof extension, suspended ceilings, laminate floor, radiator heating.

Question 7

What was the new rent proposed for Unit 1 Grove Village?

Answer 7

£18,100 p.a.

Question 8

What is Zoning?

Answer 8

A valuation technique used for comparison of retail properties, utilising the halving back principle with 6.1m zones. Rationale is that the rental value of the property reduces away from the street frontage.

Question 9

How are basement and first floor levels treated in zoning?

Answer 9

A/10 depending on comparable evidence.

Question 10

How are return frontages treated in zoning?

Answer 10

10% uplift but depends on comparable evidence and footfall.

Question 11

What did the repairing clause state in the Newton Heath Working Mens Club Lease?

Answer 11

“From time to time and at all times during the Term at the expense of the Lessee and with materials to be approved by the Lessor (such approval not to be reasonably withheld or delayed) well and substantially to repair maintain and cleanse and in all respects keep in good and substantial repair and condition the Demised Premises”.

Question 12

Describe the commercial sales yard at Hyde Road.

Answer 12

Small plot, 785 sqm, fronting onto Hyde Road, Gorton. Sloped upwards towards the back so usable area towards the front of the site. Used for sales display area and several container units operating as sales office and storage.

Question 13

What was the rent at Commercial Yard Hyde Road?

Answer 13

£3,000 p.a.

Question 14

What is the procedure for contracting out of the provisions of the 1954 Act?

Answer 14

Strict procedure under S. 38A - Landlord must serve notice on the Tenant warning that the proposed lease will not be protected - known as a “health warning”.

The proposed tenant must make a declaration in response confirming that they have received the notice and that they accept its terms.

Procedure MUST be completed before the lease is signed.

Question 15

What are the two type of declaration under s.38A of the L&T Act 1954?

Answer 15

1) Simple declaration - the parties have at least 14 days or more before committing to the lease.

2) Statutory declaration - the parties have less than 14 days before committing to the lease. A stat. dec. must be made before an independent solicitor.

Question 16

How would you undertake a rent review?

Answer 16

Check competency and conflict of interest.

Understand clients objectives and agree terms of engagement.

Obtain all information - copy of the lease, any licences for improvements or alterations, sublettings, assignments, deed of variations.

READ THE LEASE - rent review clause - assumptions and disregards.

Is time of the essence?

Arrange to inspect and measure (with regards to Surveying Safely Guidance note and Property Measurement Professional statement 2nd edition).

Undertake valuation in accordance with the rent review clause.

Agree strategy with Client.

Undertake negotiations.

Document the rent review in rent review memorandum.

Question 17

What are the contents of a rent review memorandum?

Answer 17

• Name of Landlord and Tenant.
• Address of Property.
• Date of Lease and Rent Review.
• Confirmation of new rent agreed.
• Signed by both parties.

Question 18

What is the Purpose of the Code for Leasing Business Premises Professional Standard w/e 2020, 1st edition?

Answer 18

To improve the quality and fairness of negotiations on lease terms.

To promote the issue of comprehensive heads of terms that should make the legal drafting process more efficient.

Identify the terms that are usually important and encouraging both parties to obtain advice from property professionals.

The lease code and the accompanying template heads of terms and checklist should be used as a reminder for negotiations before the grant of a new lease and at the time of any lease renewal.

Question 19

What term was granted for the lease of land at Red Bank to the Council?

Answer 19

3 years

Question 20

What was the reinstatement clause for the lease at Redbank?

Answer 20

Reinstatement of any damage cause by the works to the property. Removal of all apparatus and equipment. Removal of all waste.
Provided that the Council would not be required to reinstate/remove the haul road.

Question 21

How big was the plot of garden land at 49 Brantwood Terrace and what was it valued at?

Answer 21

58 sqm, £32/sqm.

Question 22

How do you check a tenants covenant?

Answer 22

3 years of audited accounts including profit and loss and balance sheets. Look for profits 3x rent (profits test).

Dunn and Bradstreet credit check.

References - bank, accountant, and trade.

Question 23

What would you do it a tenant was a weak covenant?

Answer 23

Ask for a deposit.

Ask for rent payment up front.

Guarantor - name and address

Question 24

What are the 6 core principles of the Estate Agents Act 1979?

Answer 24

1) Fairness and Transparency.
2) Clear Terms of Engagement.
3) Avoidance of conflicts.
4) Honest Advertising.
5) Clear Scope of obligations.
6) Client Money Held Seperately.

Question 25

What is the purpose of the RICS UK Commercial Estate Agency Professional Statement 2016?

Answer 25

Sets out responsibilities for commercial property agents to ensure that they are working to the highest possible ethical and professional standards.

Question 26

What is the consequence of misrepresentation under the Misrepresentations Act 1967?

Answer 26

Contract can be rescinded.

Question 27

How does the Consumer Protection Regulations 2008 protect consumers?

Answer 27

Must not mislead the average customer, marketing particulars must be accurate, must not be any omissions.

Question 28

Describe the land at Hinchley Road?

Answer 28

6.57 acre plot, vacant land, former school site. Overgrown with vegetation.

Question 29

Why did you inspect the land at Hinchley Road?

Answer 29

Site inspection to inform marketing particulars and to identify anything that may have an impact on proposed development of the site.

Question 30

Hinchley Road - what information was in the data room?

Answer 30

Plans, photos, Land Registry title information.
Surveys - ecology, topography, tree, traffic/highways, utilities, flood risk assessment.
Asbestos report.
Reliance letters provided by consultants.
Planning history.

Question 31

What was the marketing strategy agreed for Hinchley Road?

Answer 31

i brochure released by agent to clients, and known investors and contacts, press release in Property Week, LinkedIn post by agent.
8 Week marketing period to allow interested parties to prepare bids.

Question 32

How big was the land acquired at Rochdale Road Medical Centre?

Answer 32

150 sqm.

Question 33

What is the key case law for time off the essence?

Answer 33

Union Eagle Limited v Golden Achievement Limited [1997] 2 WLR 341 the defaulting party performed the relevant obligation just 10 minutes late and this entitled the innocent party to terminate the contract.

Question 34

What is the key case law regarding whether an agreement is a lease or a license?

Answer 34

Street v Mountford[1985] UKHL 4