Submission Summaries

Question 1

Ethics L2 Gift

Answer 1

Food hamper
After portfolio valuation
less than £50
recorded on gift register

Question 2

Ethics L2 COI Romford

Answer 2

Valuation of a retail unit
Sent an email
checked internal client register
spoke with lease advisory team to confirm

Question 3

Ethics L3 Valuation Stratford

Answer 3

Borrower asked development value
I advised outside of our instruction
He pushed
No one around
but advised can’t do - seek from another firm
wouldn’t be in line with rule of conduct 1 - honesty and integrity, and 2 competence as I hadn’t done much development at the time, and 5 uphold the profession

Question 4

Ethics L3 Legal Dispute Wakefield

Answer 4

Telecoms site
Landlord said no access until legal dispute resolved
contractor advised they could get on site (industrial site)
I said no
Decision Tree - would not be in line with rules of conduct, nor would I be comfortable with this being made public
would go against rule 1 honesty and integrity and rule 5 act in the interest of the public

Question 5

Client Care L2 Telecoms KPIs

Answer 5

KPIs - completions 15 a week, bookings, 15 a week, calls 20 a day, emails 20 a day

Question 6

Client Care L2 Valuation commnication

Answer 6

large portfolio - 25 or so properties - team of 4, 4 week deadline
no dropbox
I acted as point of contact
client sent over files and contacts for inspections
I managed sending these on to the team, creating files etc
also confirmed back to the client inspections and timelines
I rang the client at the end of each week to update

Question 7

Communication/negotiation L2 surveyor fees

Answer 7

they requested £3,000
standard fee £750-1,500
had dealt with the surveyor on other sites
suggested should be in line with fees there, and other surveyors
agreed to £750

Question 8

Communication/negotiation L2 communication agents

Answer 8

rapport
respect
concise
record accurately
represent firm

Question 9

Health and Safety L2 Site Inspection Hammersmith

Answer 9

contacted ahead to confirm they had PPE
checked hard hate use by date (month and year - 2-5 year use by)
Health and safety briefing - exits, no access areas, stay with clerk
signed in and signed out

Question 10

Health and Safety L2 Lone Working TCR

Answer 10

provided line manager with addresses
contact of the stakeholder I was meeting
What time i was expected back
made sure phone was charged

Suzy Lamplugh

Question 11

Measurement L2 Industrial Chippenham

Answer 11

2,500 sq. ft
50% site coverage - smaller so okay
25% office content - smaller so okay
Loading bay/door 4.25m high and 3m wide
min eaves height 4.5m, apex 5.25m
single storey office

Question 12

Measurement L2 Hammersmith

Answer 12

IPMS3
two buildings
shared toilets and walkway
also took out service rooms
c. 2,500 sq. ft and 3,500 sq. ft
columns the main difference - didn’t impact that much

Question 13

Inspection L2 - Godalming

Answer 13

close to prime pitch, just west, some comparables were on the prime pitch, some further away
updated one retailer on GOAD (cafe)
Agent boards

Question 14

Inspection L2 - Mayfair Office

Answer 14

specification was perimeter trunking, suspended ceilings, wall mounted AC and radiators, two lifts.
Dated and basic for mayfair
secondary glazing was dirty, reduced light flow, impact marketability

Question 15

Inspection L3 Coventry

Answer 15

We were valuing a residential property - the tenant had let the property fall into a state of disrepair.

It was very dirty, damaged in areas (old wallpaper, exposed brick, cracked windows, dirty bathroom sanitary ware etc)

I took photographs and detailed notes of the condition. I advised the borrower this would impact value, and also reported this to the bank.

Provided info within my report and took 40k off the value for a full refurbishment. 180k down to 140k.

Question 16

Inspection L3 - Sydenham

Answer 16

I undertook an inspection of a telecoms site at the rear of a pub

I noticed damage to the pavement by the entrance, loose rubble, a step down to this damaged area = risky

took photographs and arranged a joint inspection

I carried out a risk assessment, and advised the client the paving will need to be fixed

upgrade works were due to be undertaken in the coming weeks so we booked a contractor to fix the issue

I inspected afterwards and took photographs to confirm complete

I completed a 5x5 matrix form

Severity from 1. Insignificant to 5. Major

Likelihood from 1. Rare to 5. Certain

Rated 3 Moderate severity and 4 Likely to happen

Considered contractors coming and going, carrying goods etc.

Matrix table produces a result from green-yellow-amber-red

This was Amber, but needed to be fixed prior to the works taking place

Question 17

Level 2 - Industrial Doncaster

Answer 17

December 2023
c. 106,000 sq. ft
32% site coverage
Passing rent £4.00 psf
9 years remaining on the term
4 years to rent review
Market Rent £4.50 psf
Adopted 8.5% term 9% reversion
£4.875m value
Local covenant, tenant been in occupation for 20+ years, but dated property.
Letting evidence between £4.00 psf and £5.00 psf
Large yard but triangular in shape
Property dated - fit for use but ongoing capex would be required
Reflected in yield
VP 9.75% yield - £4.25m

Question 18

L2 Office Holborn

Answer 18

November 2023
Passing rent £52.50 headline
Basement 75% of headline, second floor 95%, third floor 90%
Rack-rented - rent set in 2021
just over 2 years remaining on lease
allowed for 1-year void and 1-year rent free as were informed they were looking to leave
5.5% term and reversion yields
£4.6m(?)
Borrower had refurbished so no costs included
Grade II listed so no empty rates
included letting fees
considered investment sales and cross-checked with vacant sales

Question 19

L3 Retail Hampstead

Answer 19

Passing rent £230 ITZA
Over-rented - evidence between 150-210
Strong position but not prime
Settled on £195 ITZA MR
2 years remaining on lease
6-month void as mid-point, no costs
capitalised at 7.5%/6.5%

Question 20

L3 Office - Forest Gate

Answer 20

8-storey
passing rents £11-16 psf
Borrower refurbished two floors - one had let at £16 psf and one vacant
Market rent on the vacant refurbished floor £16 psf
Market rents on other floors £12-13 psf
WAULT 3.75 years to expiry and 2.4 years to breaks (excludes vacant floors)
Term and reversion 9% on under-rented floors for the term, 10% on reversion, 10% on rack-rented, 11% on vacant reversions
c. £2m MV

Question 21

L2 Bishop’s Stortford

Answer 21

Two restaurants
March 2024
One larger unit £20 psf passing
One smaller unit £24 psf passing
MR £21.50 larger and £25 psf smaller
Both long leases (2035) and national tenants
6.75% Equivalent Yield on each

Question 22

L2 Industrial Unit - Cirencester

Answer 22

c. 1,500 sq. ft
Passing £8.50psf
MR £9.50psf
Mezzanine structure over all the warehouse space
Discounted this from my measurement as temporary
Checked with local agents this was appropriate
9 years remaining - no voids
7% equiv

Question 23

L3 Hammersmith Flyover

Answer 23

7-storey
c. 30,000 sq. ft
Passing rent £30-£35 psf moving up the building
less than 1 year left on lease - tenant advised vacating
Allowed for £125 psf refurb costs
18 month void & 12 month rent free
MR £42.40-47.50 moving up the building
term and reversion 6%/7%
Drop in value of c. 15% against previous year (MSCI c. 18-20%)

Question 24

Golders Green Retail

Answer 24

£65 psf ITZA
Evidence of £55-£70 on the pitch
rack-rented - strong location and return frontage
adjusted 10% for return frontage - confirmed with agents
2 years remaining on the lease
12 month income void as midpoint - no costs
7% equivalent
would have been 6.5% if stronger occupier
compared evidence of local occupier sales and national occupier sales

Question 25

SRE L2 - Network Operator Access

Answer 25

I worked with a telecoms operator client to help them achieve 5G update targets

I supported a team with a target of 60 upgrades per month

A number of these at any given time would be considered ‘blocked’ i.e. a landlord isn’t providing access - could be anything from outstanding renewal/rent review, outstanding rental payments, landlord has their own works, landlord unable to be contacted, landlord has changed etc
My role was to remove the blocker

This meant building a relationship with the landlord to come to a solution, or leaning on rights within the lease

Set up a system to contact all sites one month in advance, this was to confirm correct details, process and advise of plans to attend site

Sites that threw up issues were prioritised, or pushed back a month and replaced with a new site

This means we had sites ongoing to ensure target of 60 was achievable

I was on the project for 3 months and we were able to hit the target each month, including hitting 75 in the final month (end of financial year)

Question 26

SRE L2 Landlord contacts

Answer 26

One landlord for the network operator that had over 300 sites (operate canals and rivers around the UK)

Generally rural sites with access required through third parties e.g. farms, businesses, pubs

The client looked after a team who worked on outages for masts. Outages are big important issue for network operators - really important to fix quickly

They identified that this landlord hadn’t been updating access contacts for some years, and were having issues attending sites that had suffered outages

Came to Cluttons to resolve over 300 sites ASAP

I advised that in my experience, this can often take time to resolve, contacts can be hard to establish, difficult to reach etc

Therefore we should prioritise sites - P1, P2, P3

P1 was sites that needed to be attended immediately (outages, new equipment required etc)

P2 was sites where access was required in the coming months

P3 was all remaining sites

We were able to get the client onto all P1 sites (20 or so) within 2 weeks

And updated details for all remaining sites within 2 months

Question 27

SRE L3 Portfolio Analysis

Answer 27

This was strategic advice to a family portfolio who weren’t property professionals, had their own careers etc

They wanted to reduce the size of their portfolio and in particular their exposure to secondary retail assets

We had a meeting to define ‘secondary’/the type of assets they wanted to dispose of

We concluded that the most important elements were the property’s location/marketability to occupants, the current tenant covenant and the years remaining on the lease.

I produced a matrix analysing each property by this criteria

Out of 9 retail properties, identified 3 that met the criteria to be disposed of

Question 28

SRE L3 Telecoms site blocker Solihull

Answer 28

This was about saving my client money and aiding their renewal targets

Access had been planned (5G upgrade), contractor arrived and the neighbouring site (car garage/depot) had cars blocking access

The Landlord had approved access prior but was on holiday and advised he couldn’t deal with the issue until he returned - as such, the upgrade would have to be aborted

This would cost upwards of £5,000

I also noticed a renewal was on the horizon, and through previous meetings with the client, I knew timely renewals were of upmost importance, and that new ‘code’ renewals meant these were getting delayed

I advised the client that enforcing access rights in a situation like this could damage the relationship with the landlord, making the upcoming renewal a challenge

I suggested a one-off payment to appease the Landlord and have the situation resolved

Contractors were able to get on site, saving £5,000+ in abort fees, and potentially saving time & lawyer’s fees on the renewal further down the line

Renewal completed in a timely manner

Question 29

Dev Appraisal L2 - Greenwich

Answer 29

Open Storage Yard - 1.3 acres (56,000 sq ft) Owner Occupier
Had received offers for the site
produce a residual value using coverage ratio of neighbouring scheme - site coverage 53% - 7 units between 5,500 and 8,000 sq. ft - total 47,000 sq. ft
3-month lead in, 18-month build, 6-month letting, sale
GDV 23.5m (£500 psf)
Build costs £150psf (£7.1m)
Demolition £200,000
Contingency
£28psf lettings, 5.25% yield
Finance 8%
Profit on cost 15%
10% professional fees
15% letting fees
1.5% disposal fee
CIL & MCIL
Sensitivity construction vs rent

Question 30

Dev Appraisal L2 - Redbridge

Answer 30

Local Authority
6 flats - two 1-beds, four 2-beds
GDV 2.7m
Build costs provided by client £225 psf + demolition £10psf
Cross-checked with PBC team
BLV 750k (book value)
professional fees 15%
Contingency 5%
Marketing/sales 2%
CIL & MCIL
Profit on GDV of 17% (470,000)
Profit on cost 31%
3-month lead in, 15-month build, some presales and 3-month sell
Sensitivity analysis showed 5% fluctuations in build costs and sale values (viability diminished)

Question 31

Market Appraisal L2 - Chelmsford

Answer 31

20,000 sq. ft
Grade II Listed
Large columns, one set of WCs, 28 basement parking spaces
perimeter trunking, suspended ceilings, comfort cooling.
Reasonable specification for locality but dated
Comparative method - owner-occupied and unlikely to attract investor (not let)
market dropped off 15% prior 12 months, 40% prior 24 months
Concluded £125-140 psf (£2.5m-2.8m)
Market could keep going down

Question 32

Market Appraisal L2 - Putney

Answer 32

Compare residual industrial vs residential
850 sq. ft
Industrial 350k (400psf)
Build costs £230psf
profit on cost 15%
professional fees
finance
CIL & MCIL (minimal)
marketing and sale
Residual 100k

Residential
GDV 550k (650psf)
Profit on GDV 15%
professional fees
finance
CIL & MCIL (minimal)
marketing and sale
Residual 200k
let to maximise GDV

Question 33

Data Management L1 - Client Database

Answer 33

During my work with a telecommunications provider client, I had access to the client’s portal which contained important information about thousands of telecoms sites including lease information, access procedures, landlord contact details and historic/current site issues.
I was required to update information in accordance with the client’s policies, carefully verifying data before inputting it into the system. Where data appeared to be missing, I was instructed to gather the required information and update the client records. I recognised the importance of accuracy, and ensuring information was organised and clear, as this was central to the client’s operations and used across their business.

Question 34

Data Management L2 - Internal comparable database

Answer 34

During my valuation work, I regularly use my firm’s internal database to gather and record comparable evidence. I appreciate our internal processes when gathering data from resources such as CoStar, Rightmove and EGI. I ensure that any information I input into the system is verified with the relevant agents so that colleagues accessing the data have an accurate and reliable resource. I am also aware that, when using evidence from the database, I should ensure the information is correct before proceeding. Where information is missing, I ensure to update this and provide my source of information, such as property brochures and conversations with agents.