Purchase and Sale L2 and L3

Question 1

How did you ensure safety for the inspection of the Darley Street property?

Answer 1

• Water ingress and pooling on the floor
• Undertook a risk assessment of the property
• Provided required PPE including boots and hardhats for the inspection
• Property purchased by special purchaser with prior involvement in the property

Question 2

How did you reach an asking price for the Darley Street property?

Answer 2

• Assessed comparable evidence nearby
• Was provided with quotes for the repair works by the client
• Make a reasonable assessment of the cost of the works and their affect on value

Question 3

How did you reach the asking price for the Wakefield property?

Answer 3

• Analysed comparable evidence and let in line with MR
• Assessed the tenancy
• 5 years unexpired
• Adopted a NIY of circa 9% to the £30,000 p.a.
• Produced an Asking Price of £350,000

Question 4

How did you reach the asking price for the Dudley property?

Answer 4

• Analysed comparable evidence
• Assessed the tenancy
• Liaised with the Birmingham office
• Vacant following former tenant
• Assessed potential for letting and selling as an investment but would have taken too long
• Capital rate of £115 psf
• Asking Price of £250,000
• Local shop operator purchased

Question 5

How did you joint agency element of the Dudley property work?

Answer 5

• Liaised with Birmingham office at different stages of the instruction
• Agreed an asking price with them
• They held the keys and undertook most viewings

Question 6

How did the joint agent instruction work at the mixed use Leeds property?

Answer 6

• Joint sale board and particulars
• Both agreed to these elements
• Share of fee 0.75% each
• Block viewings
• Both liaised with client

Question 7

Why did you proceed to informal tender at Leeds property?

Answer 7

• High levels of interest
• Way of encouraging competition and higher bids
• No responsibility to accept the highest bid

Question 8

What was the investment opportunity in Leeds?

Answer 8

• 4 retail units
• 16 studio apartments
• 3 years remaining on commercial
• Residential ASTs
• Passing rent £135,000 p.a.
• NIY of 9%
• Asking Price £1.5M
• Sold for £1.6M (8.5% NIY)

Question 9

How did you reach the asking price for the Bradford property?

Answer 9

• Vacant possession
• Poor condition
• Analysed vacant comparables
• Assessed the quotes for repairs and made an assessment
• Liaised with the client
• £100,000 Asking Price

Question 10

How did you ensure the security of the unit in Dudley?

Answer 10

• Birmingham team holding the keys and undertaking viewings
• Vendor had management company who checked on the property periodically

Question 11

Is there any legislation surrounding joint agency?

Answer 11

• RICS UK Commercial Real Estate Agency
• Must clearly state what type of agency

Question 12

What are the risks of an empty property?

Answer 12

• Inform insurer
• Regular inspections for insurance purposes
• Empty rates
• Secure the property
• Squatters