Summary of experience questions- elective comps Flashcards
Can you please tell us what clauses you considered when reviewing the lease for the Middledrum reservoir?
I considered the Irritancy clause to establish if SW could be a risk of being served with a notice and I also considered the tenant obligation for repairing
How did you identify the appropriate remedial work at Middledrum?
- Spoke with landlord to understand complaint
- Requested pictured from landlord
- Ask for record of conditions from McKenzie’s and Project manager
- Reviewed both to identify work needed
- Discussed work with landlord to ensure he was in agreement
- Instructed work
What were your key considerations when dealing with the Middledrum complaint?
- The 12 principles of property management from the RIC professional statement on real estate management. These promote fairness and transparency
- Ensuring SW were complying with the lease
- Dealing with the issue in a timely manner
- Good communication
- Trying to maintain a good relationship with the landlord
How did you approach the negotiations at Monkie?
- I spoke with our op team to understand if we were or had been visiting the site more- we had for an upgrade project
- I asked an estimate of how often we visit the site during this time and was provided with a log book
- It reviewed the visits which were all over a short period of time
- The extra visits equalled the same as our yearly average
- Based on this I recommended a one of compensation payment for the same value as the annual rent
How did you indefinity that a one of compensation payment was the appropriate way forward at Monkie?
Our requirements/needs for the site has not changed permanently it was only a temporary increase in access required so an increased rent was not the answer.
Talk us through how you work out SW contribution for Carriston?
I used a mixture of ScotLIS and Scottish Waters in house title records to firstly identify the different ownerships. The road was split into about 3 or 4 different ownership areas with different titles have rights of access and maintenance responsibilities of different sections. I reviewed all titles and checked the burdens to figure out what percentage scottish water was due for each section. For some sections it was nothing and for others it was around 20-50% from memory. I then spoke with local ops to highlight the issue and incoming spend. The visited the site to ensure that the work was required and communicated back to me and then I advised the customer to proceed with getting quotes.
How did you approach the maintenance agreement for Milton Bridge?
I visited the site to discuss the access track and any issues with customer. I took pictures and reviewed title areas etc.
I then Identified key terms-
o Personal agreement
o Spoke with ops about term required
o Spoke with ops about use- how often are we using, do we need vehicle or pedestrian access, what are we doing etc
o Reviewed comps for comparable agreements to identify annual payment
o The Maintenance responsibility- in this case the Customer would be responsible for maintaining the access track
I sent these on to the customer, who unfortunely hasn’t been able to deal with the matter due to family issues.
However once terms are agreed I would then instruct legal to put together a personal agreement (Is this a min of agreement?) and remain engaged.
Once agreed I would add it to the lease schedule for continued monitoring
Why was a personal agreement suggested for Milton Bridge and not a lease?
Our operational team were unsure of the future of the associated asset so only a short term was required.
A lease might have been more beneficial if we knew the associated asset were to be in operation for another 15+ years and we wanted to reduce any further dealings. A lease would allow for the agreement to pass to any new homeowners if the customer were to sell.
How do you consider the RICS public sector Property Asset Management 2nd Ed 2012 when managing properties? what does good property asset management look like
I consider how the document GUIDANCE describes good property management:
- good engagement with stakeholders inside and out
- good budgeting, management of costs etc….achieving best value
- good record keeping, analysing data where possible to make improvements
- good customer care
what are the principles for good property management ?
Can you talk us through how you give consideration to occupiers liability act 1984?
what are the considerations with empty buildings? what sort of issues have SW incurred?
What must a lease have?
Start date/end date (term) Property description/address Rent payable Rent review Signature – a lease of longer than a year must be in writing
Have you carried out any lease valuations?
Killiecrankie- pipe ridge
Shadwick place office
How did you identity the proposed terms for Killiecrankie
I started by reading the current lease, which was for a pipe bridge.
spoke with Ops to understand our needs
reviewed our options
What lease clauses would affect the value?
Use- for example if the use was very restrictive it MIGHT affect value depending on market conditions
Term- In some circumstances you might pay a bit of a premium of a short lease
Rent-
Repairing- for example for an internal repairing lease you might be a little bit more because your facing less unknowns.
Rent review- if the rent review period if more frequent that will affect value negatively for the tenant.
Alienation- assignation (tends to be in whole) or subletting (could be whole or part)- If the market norm is for free movement of tenant, it might affect value if this clause is restrictive. In terms of subletting do not allow for subletting or only allow for subletting the whole of the property it might also affect value as it could be more restrictively for the tenant.
What are the key things you considered when agreeing a new lease such at Glebe?
What is requirement are in terms of: start date, the term, use
Writing off fitting out costs – for example might want to ensure your getting a long enough term to write of fitting off costs
Rent- looking at comparable evidence
Alienation- to understand how much flexibility we need
Repairing clause- ensure we are protected with a schedule of conditions. Ensure the people occupying the building are aware of what are obligations are under the lease so they can keep an eye on this and budget for issue.
Why did you get legal advice on the environmental clause? And what was the advice?
With any land there is a risk that the prior user had contaminated it and there was a risk we could be taking on that liability.
To help quantify the risk I checked with ops about the use of the site and then got a desktop environmental report.
Then took legal advice to reword the clause to ensure SW would only be respobsible for contamination from the lease start date
Why did you choose a licence to occupy over a lease at town yetholm
When I spoke to the asset planner, they confirmed that the land might be required in the next 5 years. The licence gave us more flexibility to terminate at any time
How did you identify terms for the town yetholm lease? What were the key considerations?
Term- spoke to asset planner
Licence fee- looked at comps
Use- spoke with licencee to understand what they would be doing on our land and then spoke with ops to confirm they were okay with the proposed work
Key consideration:
Indemnity insurance-
Termination clause- licences tend to be similar and used for very short period
How might a lease continue despite it having a fixed term
Tacit recollection- the principle whereby the lease renews on a yearly basis if either party fails to serve termination at the expiry of the lease.
risk- no security of tenure
