Submission Questions Flashcards
Define timely manner for issuing service charge documentation
- budget issued 1 month before commencement
- YE documentation issued within 4 months
Purpose of Service Charges in Commercial Property - 1 April 2019
- promotes best practice, uniformity, fairness and transparency
- 9 mandatory principles
Purpose of Commercial Property Management in England and Wales - 1 October 2011
- act as LL agent, manage third parties and duty of care to LL
- maintain tenancy records
- ensure lease compliance
- collect rent, service charge and other funds
- ensure day to day liaison
What did you do when Tenant at Interchange paid monthly rather than quarterly
- sent their lease clause
- stated funds to be paid quarterly in advance on English Quarter Days
- threatened to charge interest as per lease (4% above base rate after 7 days of non payment)
Not to be unreasonably withheld or delayed
-s19 LL&Act 1927 - withheld
-s1 LL&T Act 1988 - delayed
What is a LtA?
- document that contains written approval from LL to T
- allows T to make changes to the property
Purpose of PPM
- notes costs for different elements over 10 years
- shows cost per year breakdown
- split into categories like roof, external, internal, mechanical/electrical, lifts
What is a service charge reconciliation?
- at end of service charge period, you compare actual expenditure to budgeted figures
- use invoices to check actual expenditure
When do changes need to be legally documented in Property Management?
- Licence to Alter
- Wayleave
- Licence to Assign
- Licence to Sub-let
When might additional inspections be required?
- if requested by insurers EG if vacant
- if T has carried out works under LtA
Why was an LtA required for internal partitions to be added at Interchange?
- they were structural alterations
- wanted the unit to be put back at the end of the tenancy
Why did you instruct PPM at Bow Lane?
- must have been completed on reactive basis in past
- now scheduled to prevent issues arising
- good way to maintain investment value of property
EG fire risk assessments, legionella testing, lift insurance inspections, external/internal repairs
Talk me through the open market rent review at 80 New Oxford Street?
- received instruction from client
- checked competent and conflict of interest
- checked legal documentation
- checked assumptions and disregards in RR clause
- inspected and measured unit
- collect comparables and made recommendation
What did the S25 notice include at 25 Watling Street?
Friendly notice so contained:
- property
- rent
- other terms
- health warning (proposal is for negotiation and terms are not contractually binding)
What did you include in Terms of Engagement before completing Rent Review at 80 New Oxford St?
- identification of parties
- property address
- date
- currency
- investigations and limitations
- assumptions and special assumptions
- basis of value
- fee
What is the relevance of your valuations being internal valuations?
They are exceptions to the Red Book
What was your contingency in your residual valuation for Interchange?
I used 5% of the professional fees as had average risk, but could be 1-10% (risk dependent)
You state that you understand that mandatory and advisory guidance of the Red Book, can you summarise the mandatory requirements?
- terms of engagement
- inspections and records
- assumptions and special assumptions
- bases of value
- valuation report
Where can the valuation standards be found?
- in the Red Book
- issued by International Valuation Standards Council
When valuing Imagination House, on what basis did you rank the comparables?
Used hierarchy of evidence to rank in order of transaction type
- open market letting
- lease renewal
- rent review
- independent expert determination
- arbitrator award
How did you determine the yield you used for the valuation at Imagination House?
Analysed investment comparables
At Interchange when you did a residual valuation, was the development pre let?
No, but if it was I would have used a lower percentage for developers profit
- would have been less risk and higher chance of return
What basis did you select for building costs in your residual valuation of Interchange?
Used GIA as per BCIS
What did you look at when deciding on payment plan for 45 Cannon St tenant?
- profit and loss account showed they were making profits again (but had been making loses during pandemic)
- management accounts showed their situation was improving and their income was outweighing their expenditure
- companies house showed where they were post covid vs pre covid so could see they were almost back at post covid levels
