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APC > Summary of XP Qs > Flashcards

Summary of XP Qs Flashcards

1
Q

Please explain the T&R technique

A

1) Identify Income Flows
I used the lease to establish the passing rent. I then used market comparable to establish the market rent. I also established the reversion would take place at the rent review date.

2) Capitalise Term
I used a Years purchase calculated from comparable yield analysis to capitalise the passing rent for the remaining number of years.

3) Capitalise Reversion and defer using the PV of £1

I used a yield derived from the comparable analysis, reflecting risk, to capitalise the Market rent

4) Add together to give single capital sum

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2
Q

What is a SWOT Analysis

A

A Strategic Planning tool showing the strengths , weaknesses, threats and opportunities,

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3
Q

What is a Gannt Chart

A

A Project Management Tool illustrating work completed over a period and the timescales of owrk over ap period

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4
Q

What did you learn from the RICS Development Appraisal Webinar?

A

I learnt about the imputs of an appraisal, what to account for and how to evaluate the evidence

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5
Q

How did you Value the Ransom Strip Land on the Fareham Site?

A

From the Case Law Stokes vs. Cambridge, I knew a Ransom Strip can create an up lift in Value. typically in line of 15-50%. of the Development Land Value.

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6
Q

Was WW Site a Red Book Valuation?

A

It was Exempt under VPS 1, but I used the RB for guidance

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7
Q

What steps did you take to mitigate the Flood Risk on the AL site?

A

I consulted a Engineer who specialised in Flood Strategy. they advised on how the angle of the site could be used for flood mitigation. I factored in the cost of this into the appraisal.

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8
Q

What is included in your employer’s lone work Policy?

A

Employ buddy system.
fully charged mobile
Risk and Hazard assessment carried out

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9
Q

What was the purpose of the Wayleave Agreement?

A

to facilitate access for installation of maintenance

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10
Q

What is the difference between an easement and a RC

A

Easement is a registerable Right which benefits the owner of a parcel of land

an RC resitrchts a land parcel’s use

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11
Q

What is the Zoning Method

A

Zoning is a Valuation Tool
used for the comparision of retail properties to create a unit of comparision
based on halving back principle- value depreicates futher away from Zone A

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12
Q

Please describe the S106 Negotations you undertook?

A
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13
Q

What is the Registration Gap?

A

The registration gap’ is a phrase used to describe the period in a property transaction between the date a buyer and a seller agree to complete the sale and purchase of a property, and the date the buyer is registered as owner of the property at the Land Registry.

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14
Q

What is Judicial Review

A
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15
Q

What is Valuation Uncertainty?

A
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16
Q

Please describe the T&R Valuation Method you used?

A
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17
Q

So, you had in mind a figure for the residual land value that you wanted to get to and then
adjusted the profit percentage to align with it?

A

Certainly not. My assessment of profit was based on the risk profile of the scheme. It was a
low-risk scheme due to the high demand for the product and low unit numbers.

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18
Q

What percentage would be higher – profit on Cost or profit on GDV?

A

Profit of costs would be a higher percentage than that on GDV.

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19
Q

What is the main piece of legislation concerning planning

A

Town and Country Planning Act 1990.

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20
Q

What else?

A

Localism Act 2011

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21
Q

What other legislation relates to Planning

A

The National Planning Policy Framework 2012, amended 2019 and 2021.

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22
Q

Does the NPPF have a presumption in favour of Planning?

A

No, it states the presumption in favour of sustainable development

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23
Q

What databases do you use for Residential Valuation Work?

Are there any problems with these?

A

Rightmove and the Land Registry

Delay in data published, Prices on Rightmove are values are not necessarily achieved.

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24
Q

What databases are used for commercial comparables?

A

Co-Star, EG

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25
Q

Is this information reliable

A

It should be checked with the agents to verify transaction details, e.g. lease details

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26
Q

What would you need to do to set up your own RICS practice?

A

1) Inform RICS of Firm Detaiils
2) Arrange PII- including Run Off Cover
3) Set up Complaint’s Handling Procedure
4) ensure CPD is up to date

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27
Q

Tell me about a planning application which you have been involved in, outlining the statutory duties required.

A

I was involved in the prep of an outline application. including S106 undet TCPA 1990

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28
Q

What information has to be prepared in advance of the submission of a planning application?

A

Location Plan (1:1250 or 1:2500).
Site Plan (1:500 or 1:200).
Drawings 1:50 or 1:100 to include floor plans, sections and elevations.

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29
Q

How long does a planning authority have to determine the application?

A

8 weeks – minor

13 weeks – major

16 weeks – major with EIA

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30
Q

Outline the appeal system for planning applications which have not been determined in the required timescale or which have been refused.

A

Appeals can be heard by:

Written statement (the most common form).
An informal hearing.
Planning inquiry (for large or complex schemes).
If an appeal is dismissed it can be challenged in the high court on a point of law.

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31
Q

What are the differences in the information required between an outline and detailed planning application?

A

Outline requires submission of reserved matters which must be approved prior to consent. 3 yrs to submit and further 2 yrs to gain consent

FP 3 yrs to commence development

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32
Q

Tell me about the Use Classes Order.

A

governed by the Town and Cuntry Planning (Use)

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33
Q

Tell me about some proposed changes currently being considered in respect of planning

A

Levelling Up and Regeneration Bill, currently in the Commons

BF Land prioritised for development
penalties for developers delaying to build approved homes

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34
Q

What is a S.106 payment? When do they arise and what is the significance for a developer?

A

Fixed Agreements negotiated on a 1-1 basis:

contributions based on 3 poit test:
necessity
directly related to development
reasonable in terms of scale nad type of development

Developers must make these payments at speified points to gain permission for the development

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35
Q

Tell me about some negotiations which you have had with a planning officer.

A

HR S106 Negotiations

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36
Q

What environmental and other impact assessments have you been involved with? When are they required?

A

Flood Risk, AL Site

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37
Q

What considerations did you take into account when assessing the reduced price for the residential development in Fareham?

A

Established Market Value, spoek to AH providers to check how they discounted their assets, applied accordingly

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38
Q

What were the advantages of the land at roundabout, Fareham for light industrial or retail use

A

In attending the LPA examination, community feedback supported employment use for the site.

39
Q

Please explain the Hardcore/Layer Method

A

Draw Diagram

40
Q

How would you value a rack-rented property where the comparables are overrented?

A
41
Q

What was contained in your design and access statement/development principles document

A

Site Contextual Info
Planning Opportunities and constraints
Development proposals

42
Q

What is In-Tend?

A

procurement software bidding platform

43
Q

How did you discount the sales for the LHA?

A

I would do this on a scheme by scheme basis. In this case, I applied a discount rate to the GDV, based on evidence in the market.

This evidence came from speaking to AH providers who had worked on recent similar size schemes to gain their expertise.

44
Q

Did you reccomend bids to the Client?

A

No, unethical under s3) EAA 1979

45
Q

Why did you reccomend withdrawing from the market on the multi-phase development

A

inflation at reached 11.1% with further uncertainty in the Market, it would not achieve my Client’s objectives under S123 of the LGA 1972

46
Q

What is the purpose of a Valuation?

A
47
Q

What is the full name of the Red Book

A

RICS Valuation Global Standards (Red Book Global)

48
Q

Talk me through your Industrial Valuation

A

Internal Purposes:
Used Comparable Method
T&R to establish Market Value
advised of market strength, yield and comparable

49
Q

Talk me through your retail valuation

A

Loan SeucirityPurposes:
Used Comparable Method
T&R to establish Market Value
advised of market strength, yield and comparable

50
Q

Talk me through your residual Valuation

A

Comparable Method used to establish sales revenue from proposed unit mix

build costs, planning costs, Contingnecy, Professional Fees, Developers Profit

51
Q

Is there any Guidance on measuring NHS Land

A
52
Q

How did you weight your comparable evidence?

A

I analysed the factors, considering what a prospective tenant would make allowance for and weighted these accordingly

for example- one lease was 7-5 year approach- had to use the rent by 5-10%

53
Q

What are the most up to date RPI and Inflation Figures

A

11th May 2023
interest 4.5%
RPI/inflation 10%+

54
Q

How did you verify your SWOT Analysis was Accurate

A

I asked a Senior Colleague for a Peer Review of my findings prior to reporting to the Clent

55
Q

Why did you ultimately advise against the Development of CM?

A

I had a high contingency (10%), extra cost from increase in BCIS costs, costs, create new access route, ultimately outweighed the financial benefits of the scheme

56
Q

What changes to Valuation process are you aware of?

A

RICS valuation review – consultation focusing on DCF valuation closed on 12th April 2023.

57
Q

Were there any ethical issues on dealing with the LPA in your case Study

A

No, I followed the correct procedure, procuring TOE and Due Diligence, and keeping a record of correspondence with the LPA

58
Q

Why not Formal Tender

A

I concluded this was not suitable to achieve Client objective of Best Value

59
Q

why not PT?

A

there was a market appetite for a competitive bidding process

60
Q

How did you address the issue of TPO’s

A

I consulted a team of Planners & Urban Designers to plot the RPZ so Developers could account for this

61
Q

Why would you not accept an Overage Clause

A

the Clause was based on achieving a significantly higher Floor area than the LPA would accept, the scheme was also not viable.

62
Q

Did you advise the Client which offer to accept?

A

No, I scored bids recieved and provided these to the client. I did not advise on the bid to accept as this would be unethical under EAA 1979

63
Q

What is the current Finance Rate for Development Appraisal

A

National Firms Average finance rate is 7-8%, one outlier is based on what the Client’s were able to achieve in the market 11%, interest rates

64
Q

what were your contract negotiations on HE

A

Covered timings of developer’s payments, if needed to defer from S106, access to site etc.

65
Q

Why do you refer to a residual appraisal

A

this was an error I only noticed after my submission.

66
Q

What did you do regarding the easement on WR?

A

My interpretation was the right of access was no longer required as the beneficiary had constructed an alternative access. I then advised my Client to seek legal advise on whether this could be extinguished.

67
Q

What Guidance did you adhere to when measuring your Industrial Units

A

RICS Code of Measuring Practice 2015

68
Q

Please Explain PDRs

A

for some development, PP is not required, the PDR 2021 has created Class MA which introduced right to change use from Class E to Class C3

69
Q

What Constraints were on site for PF

A

TPOs and RPZ., used Planning consultant to mitigate these

70
Q

Why did you withdraw the site at HE from the Market?

A

The market volatility caused by the Mini Budget pushed inflation to 11.1%, the offers recieved did not reflect the

71
Q

WHat is included in your Risk Register to HE?

A

Risk identified, description, impact of risk on project, risk owner, mitigation strategy

72
Q

Outline the principles contained in Management of Risk 2017 and Development Management 2009

A

RM 2017 outlines definition Risk and strategy for dealing with project Risk

DM outlines stages of DM:
1) Phase of Development
2) DA
3) Planning
4) DF
6) Procurement

73
Q

outline your walkability CPD

A

Outlined the sustainable criteria of making developments more walkable

Case Study: Poundbury

74
Q

What is included in the Sustainability Report 2021

A

Increased Demand for Green Buildings, some place 10% up lift in Value, but 47% reports only a modest rise.

Client demand is driving ESG Investment

75
Q

What did you learn from your return to the Office CPD

A

Although there has been a return to the office, there has been an increase for demand for High Quality Office space

76
Q

What do you understand about MEEs

A

From 1st April 23, all commercial buildings with existing leases now require EPC Level £ from 1st April 2023.

Exemptions are defined as:

High cost exemptions
7-year payback exemptions
All improvements made exemptions
Wall insulation exemptions
Consent exemptions
Devaluation exemptions
New landlord exemptions

77
Q

What is the Bichard Review

A

The Review, published in June 2022, made 36 recommendations in seven key areas relating
to the purpose and governance structure of RICS, providing advice on values, culture and
strategy. RICS has accepted all the recommendations.

Reccomndations included:

Governing Council is currently implementing a new composition of Council to better reflect the
geographic location and disciplines of members. There are Governing Council elections
taking place in April 2023.

The management structure of the RICS has been changed with two new boards set up- the
Standards and Regulation Board and the Management Board. A new Regulatory Tribunal
reports to the Standards and Regulation Board.
* RICS has recruited Diversity, Equity & Inclusion (DEI) and Sustainability Panel Chairs to lead
these priority issues as part of their new governance structure.

  • RICS has announced in April 2023 a package of support to promote and drive member
    engagement, experience, and value. Initiatives will include some free CPD events, networking
    events, working with Matrics, and an ‘improved customer experience’.
78
Q

What is IMPS All Buildings 2023

A

The International Property Measurement Standards (IPMS) coalition published the latest
standard in January 2023 – IPMS: All Buildings
* IPMS: All Buildings supersedes all previously published IPMS standards for individual asset
classes into one harmonised standard. IPMS: All Buildings is applicable to all types of
building irrespective of their use or their occupation.
* An updated version of RICS Property Measurement guidance is expected that will take into
account the new IPMS: All Buildings standard.

79
Q

What was your advice on TW

A

Reasonable for loan purposes

80
Q

Did you include any special assumptions in your Valuation

A

Yes, that there was Vacant Possession

81
Q

What was the measurement

A

NIA Basis, Code of Measuring Practice, in metric units and converted to Imperial

82
Q

What are the new Classes under Town and Country Planning Use Classes Regulations 2020

A

Class E
Class F1- learning and non residential instution
Class F2- local community
A4 now Sui Generis

83
Q

WHat did you advise about the Retail Market

A

VR 15.8%

84
Q

factors considered

A

12 month marketing period- outside of Prime area

85
Q

Whatr Yields applied

A

Term: 6.5%
Reversion: 7.5%- reflecion of RIks

86
Q

What did you include in your risk analysis in hE

A

Likelihood and Impact of RIsk using Risk Register,

I then used the RR to monitor the risk as it was passed to a Contractor.

87
Q

Was your Office Unit a Red Book Val

A

It was exempt under the rules included in PS 1 of the Bred Book. but I adhered to this for Gidiance

88
Q

what were yields on industrial Vals

A

half a point more, it was under rented but a strong industrial market was in place, a degree of risk but mitigated.

89
Q

Was your Havant Val Red book,

A

No but was adhered to at Client’s request

90
Q

Which Part of RB relates to secure lending

A

VPGA 2

91
Q

What does VPGA 2 state

A

any involvement with asset stated to lender
cannot act if have been involved in last 2 years

92
Q

What does VPGA 10 Cover

A

Material Uncertainty:
Val cannot be misleading, Valuer should draw attention and comment on any issues resulting in material uncertainty-e.g. COVID

93
Q

Outline Hardcore/Top Slice method for overented proeprties

A

1) Capitalise Rent (hardcore) into perpetuity
2) Capitalise topslice (difference between market rent & hard core rent) will start from revision into perpetuity, this defers as appropriate
3) sum the two capitalised values

APC (13 decks)

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