Questions based on my case study and SOE Flashcards
How did you find comparable evidence for your valuation?
Speak to lettings agents, use Co-star, in house records, local inspection looking at agents boards
What investigations would you carry out to come to your All Risks Yield?
You would first use the gilt rate and add on percentages where you thought the risk was greater.
To determine these, you would first look at the market comparables and then the property specific comparables.
What was the credit rating for Land of Munchies in your case study?
Very high risk - score of 20
What is a credit safe report based on?
Uses a risk weighting as well as looking at the financial health of the company.
Key aspects are:
Financial Data Trends
Payment Performance
Industry analysis
Directors
Any previous or active court judgements
If Land of Munchies hadn’t signed the deed of surrender, what could you have done?
Could have accepted a surrender by operation of law if they absconded or handed back the keys but if they were still opening we would have to forfeit the lease
If the gift shop at bexleyheath had continued to sell hot food which was not permitted under the terms of the lease, what could you have done?
I could have served a Section 146 notice as the tenant was in breach of their lease terms
What was included within your inspection reports at St Martins Precinct?
Date of inspection
Weather conditions, time of day
Who undertook it
Area/property in question and details of this
RAMS (if required) an risk assessment
Previous inspections, warranties, plans
Site photographs, inspection notes of any defects
When the next inspection will take place
Why did you make a recommendation for the landlord to serve a Section 25 notice on an expiring lease at The Swan Shopping Centre, Eastleigh?
The existing tenant had a strong financial covenant and had never been late to make a payment. The unit in question was a distinct shape and would be difficult to relet.
The lettings agents had undertaken a comparable valuation and determined the rent payable to be the market rent
Why didn’t you dual report when measuring the retail unit in Witham and Caversham?
The lettings agents advised me that the retail units are only measured on an NIA basis as measuring retail units using IPMS 3 is not mandatory.
Caversham is located on a flood plain, what signs of flooding would you look for?
Tide lines & river vegetation in areas it shouldn’t be
Ponding water & poor drainage
High river level
UK Geological Society maps high flood risk areas and issues alerts
How did you negotiate with the tenant Land of Munchies Limited?
- Preparation - have all of the facts available
- Build rapport - establish trust through active listening and empathy
- Clear and concise communication eg body language and eye contact
- Problem solving approach - ensures you don’t get stuck on one issues by generating options
- Negotiate - start with a high offer but be willing to make small concessions as long as you don’t go below a set line
- Manage emotions - stay calm and avoid personal attacks
