Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

APC > Valuations levels 2+3 > Flashcards

Valuations levels 2+3 Flashcards

1
Q

you mention this was for accounts. What sort of accounts?

A

internal accounts for a independent landlord

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

how to check if conflicts existed?

A

internal software. and cross check with property and client

If small firm send email and check files.

Conflicts could be team valuing property while another team selling property for borrower.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Why NIA and not IPMS?

A

advised client of benefits however client wanted to use code of measuring practice.

all comps use NIA hard to value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What kind of accounts valuation was this?

A

Annual accounting purposes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

MV of this retail unit?

A

£450 / sqft

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why is covenant important?

A

Assesses the security of income.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

MR of retail unit?

A

£26,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Zone A rate for retail unit?

A

£30

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

size of retail unit?

A

700 sqft

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

retail unit construction/ background

A

4 storey Victorian terraced building
plaster walls

predominately resi area with few local occupiers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

retail unit valuation approach?

A

investment- over rented- adopted hardcore and layer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

retail unit yield

A

7.8%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

is there a break- retail unit?

A

2.5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

retail unit- any void?

A

9 month void=
rent free 3 months based off market evidence
6 month- marketing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

guildford- MR

A

£20/sqft each
same size, same spec, same location

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

guildford- MV

Resultant yields?

A

£300/sqft

Reversionary yield higher then net initial yield as market rent higher than current rent so there would be higher return against opinion of market value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Guildford- total area and zoned?

A

2,500 each

overall basis not zoned due to comps

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Guildford- spec

A

2 units, mid 1900s building
masonry
glass frontage
flat roof

LED
plastered walls

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Guildford- location

A

affluent area, south of london
struggled after covid however has picked up since
national and local occupiers

this spot- 2ndary location, out of town

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

break- Guildford

A

3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

void guildford

A

12 months- 6 months rent free, 6 months marketing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

valuation approach- guildford?

A

term and reversion

20
Q

what comps were you looking for Guildford?

A

looked comps separate and comps as parade

21
Q

construction of Kennington?

A

5 storey georgian terraced house
flat roof, masonry

22
Q

what do you mean by subprime condition of Kennington?

A

not grade A spec
Stained carpets
Single glazed
Wall mounted AC
perimeter trunking

23
Q

what did you advice the client in Kennington?

A
  1. advised multi let- based on comparables- all let on floor basis rather than whole building
  2. tenant demand was strong
  3. special assumption- refurbishment
  4. opinion of fair value
24
Q

void period Kennington?

A

9 months
6 months- rent free
3 months- marketing

25
Q

NIA Kennington?

A

4,000 sqft

26
Q

MV- vacant possession Kennington?

A

£550 sqft

27
Q

MR Kennington?

A

£50.00sqft

28
Q

how did you account for the refurbishment?

What did the refurb include?

A

day 1 capital expenditure
£50 per sqft

New carpet tiles, update common areas, plaster walls

29
Q

area- Kennington?

A

Predominately a resi area therefore I would describe it as a tertiary office market

30
Q

what did you underpin your opinion by fair value to Kennington?

A

comparable method- looked for units sold in vacant possession

Sense checked with investment method.

Assumed void period e.g. vacant rates, rent free. Based on market evidence

Property would re let at opinion of market rent into perp.

Capitalise investment using equivalent yield at higher rate to reflect property was vacant.

31
Q

MR how did you account for the different floor levels?

A

as there was a lift, top floor is most valuable due to the views
£5 sqft added each floor up

32
Q

yield kennington- underpinned method

A

7.5%

33
Q

Industrial Ealing- L2- MR and MV?

A

£200/sqft MV
£20/sqft MR

34
Q

spec Industrial Ealing?

A

4m eaves height
70% site cover
steel portal frame

35
Q

Industrial Ealing- investment method used?

A

comparable method £/sqft

36
Q

size Industrial Ealing?

A

3,200 sqft

37
Q

what tenure was retail clapham?

A

FRI lease

38
Q

what is an FRI lease?

A

tenant obliged to cover costs.

In the tenants covenants will be a clause stating tenant is required to keep property in good and substantial repair.

39
Q

what is an effective FRI?

A

service charge payment obligations from landlord to tenant to pay. covers insurance, repairing

40
Q

What was the tenure for Kennington and Ealing?

A

Freehold

41
Q

Tell me two things you included in your GIA measurement

A

Included toilets, kitchens, pillars, plant rooms

42
Q

Industrial Ealing Why GIA over NIA?

A

Standard practice for industrial assets as per the RICS Code of Measuring Practice

43
Q

How did you determine the asset was reversionary- retail Guildford?

A

Through my rental analysis of comparable properties in the area.

44
Q

Why did you deduct Standard Purchasers’ costs? Walk me through this process- Industrial Ealing

A

I deducted these at the end of the valuation to calculate MV. It allows comparison with other assets. Usually around 6.5%.

45
Q

Give me an example of a Valuation related CoI

A

one internal team marketing building to sell

valuation team valuing property

46
Q

office kennington- how did you know it was freehold? and whats in this doc

A

title register

property register
proprietor
charges register
schedule of leases

47
Q

Kennington- why is perimeter trunking poor spec?

A

wires can only reach the outside of building, not in the centre

looks poor

48
Q

Kennington- Walk me through where the costs of refurb appeared in your calculations

A

were seen in Gross Value

cap ex always at end

operational expenditure- deducted from rent

49
Q

market in clapham

A

rise of ecommerce has damaged high streets across the country and would say clapham has been impaced by this change. however the retail market is rebounding.

yields- 5-6%

50
Q

office market in kennington

A

tertairy office market, majority a residential area

APC (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions