Presentation Questions

Question 1

What were the risks of the structural alterations?

Answer 1

• structural risks (no structural integrity report)
• risk to visitors / tresspasses (Occupiers Liability Act 1957 / 1984)
• fire risk - Fire Regulatory Reform Order (Fire Safety) 2005 - tenant responsibility
• health and safety - Health and Safety at Work Act 1974
• insurance - inform insurers

Question 2

Penalties for not holding a valid EPC?

Question 3

What contractor carried out the structurla survey report and how did you protect your client?

Question 4

When did the lease complete to United Silicones Ltd? When did Carpetright Plc vacate?

Answer 4

6th April 2023

Carpetright vacated in January-23

Question 5

How long did United Silicones occupy Unit 9 and 10 before?

Answer 5

10 years, renewed for another 10-years in May 2023

Question 6

What was the specification of the property?

Answer 6

?

Question 7

What rent was the tenant paying in Unit 9 and 10?

Answer 7

?

Question 8

How did you manage to complete the lease so quickly after agreeing the heads of terms in March?

Answer 8

Heads of terms were agreed on 1st March

Lease completed in middle of April (circ 6 weeks)

Question 9

What was included in your desktop risk assessment before inspecting on January 5th 2023?

Answer 9

Under Surveying Safley (2018)….

Question 10

How did you create the Schedule of Condition?

Answer 10

Building Suveyor

Question 11

How did you measure the property?

Answer 11

GIA basis

3,250 GIA

Measured from??

Question 12

Site coverage?

Question 13

How did you estimate the Market Rent

Answer 13

Collated a table of Category A comparable types, in-line with Comparable Evidence in Real Estate Valuation (2019) - Guidance Note

Question 14

What is the Hierarchy of Evidence?

Answer 14

?

Question 15

What were your comparables?

Answer 15

Unit 7-8 - Invincible Road
Unit 42 - Invincible Road
Unit 7 - Albany Park
Suita 17a - Invincible Road

Question 16

Why was Unit 7-8 Invincible road the best evidence?

Answer 16

Although this letting was a renwal, the evidence is still Category A transctional evidence

The property was identical size and specification

The covenant strength was very similar, both circa 70 on Credit Safe

The premise was in marginally better condition and the lease term was 5-years and so a slight rental discount was provided

Question 17

What was the Market Rent for Unit 11?

Answer 17

£12.49 (£40,600 pa)

Question 18

What terms did you agree for Unit 11 to United Silicones Ltd?

Answer 18

10 year term
5th year break
5th year upward only market rent review
Headline £38,200
Headline £11.75
Rent Free 1 month
3 months rent deposit
NER £11.56

Question 19

What profits test did you do?

Answer 19

?

Question 20

How do you calculate the NER?

Answer 20

?

Question 21

What is an uncondiitonal quite notice?

Answer 21

Notice to tenant under s.146 if tenant fails to remedy breach - commencing forfeiture

Question 22

You say in your case study, the strength of mediation is that under JCT Standard Building Contract, both parties are required to seriously consider mediation? what do you mean by this

Answer 22

JCT Standard Building Contract is for large and complex projects, I was referring to the strength of mediation, as it is required to be considered in these complex project programmes.

Question 23

Why would the tenant face cost sanctions for refusing mediation?

Answer 23

English courts uphold cost sanctions for parties refusing mediation

The breach was clear and therefore refusing mediation is especially unreasonable

English courts are highly in favour of ADR

Question 24

You mention Energy Performance of Building Regulations (2007) in your case study?

Answer 24

This was the first iteration, recently ammended in 2024 to insert more data sharing clauses and more transaprency

Question 25

What is MEES and when was it introduced?

Answer 25

MEES is Minimum Energy Efficient Standards and was introduced in Energy Effiiciency Regulations 2015.

1st April 2018 - Unlawful to grant new leases with EPC less than E
Last updated on 1st April 2023 - requiring an EPC E of all existing lettings

Question 26

What are the penalties under Energy Efficiency Regulations (2015)?

Answer 26

Energy Effficnecy Regulations (2015)

<3 months = £5,000 or 10% of RV (Max £50k)

> 3 months = £10,000 or 20% of RV (Max £150k)

Question 27

What are the penalties under Energy Performance of Buildings Regulations (2007)?

Answer 27

12.5% of RV
Min £500
Max £5,000

Question 28

How long were you without an EPC? What actions did you take to restore compliance?

Answer 28

I discovered the alterations on 23rd January when I conducted the initial inspection.

Under the regulations, you are not legible for penalties if you are unaware

Within 48-hours I instructed EPC improvement works to be carried out and a new EPC was reinstated after just over 2 weeks

Question 29

What EPC imrovement works did you undertake and what was the cost?

Answer 29

circa £13k

• Secondary glazing - workhop windows, reception areas
• Pressure Test / Treatment - identified air leakage through gaps/cracks in buildings fabric (use expanding foam)
• Replace T8 lamps with T5 (lower upfront than LED, easy retrofit to install)