Loan Security Valuations - Level 2 Flashcards
Can you explain your role in assisting with the valuation of a shopping centre in Derby for loan security purposes? How did you contribute to the overall valuation process?
Describe the steps you took to initiate the valuation process, including the completion of a conflict check and the preparation and issuance of Terms of Engagement for client approval.
Explain the due diligence process you followed, including the request for the latest tenancy schedule, service charge budgets, floor plans, and building documents from the borrower. How did you ensure the completeness and accuracy of this information?
Discuss the details of the property inspection, including your interaction with the centre manager. What additional information did you gather during the inspection, and how did you document the condition of the property
Can you explain the process you used to zone the floor area of the larger retail units in Excel to estimate rental values? How did you analyze the rental evidence within the property and consult with the leasing and investment team to ensure accuracy?
Describe the methodology you used to determine the appropriate Market Rent and capitalization rate for the shopping centre. How did you outline this methodology in the draft report, and how did you present your opinion on the market value?
Discuss the review process carried out by your manager and the issuance of the valuation report to the client. How did you ensure that the report adhered to RICS standards and guidelines for loan security valuations?
Can you explain your role in assisting with the loan security valuation of a shopping centre in Preston? How did you contribute to the overall valuation process?
Describe the due diligence process you carried out for the valuation. What specific documents and information did you request, such as approved floor plans, the latest tenancy schedule, building documents, and service charge budgets?
Explain the property inspection process, including any checks you made to ensure consistency between the units listed in the tenancy schedule. How did you gather additional information from the centre manager, and how did this contribute to your understanding of the property?
Discuss the review you conducted of the tenancy schedule, heads of terms of units to be let, and building documents. What factors or details did you specifically analyze, and how did this information impact the valuation?
Can you elaborate on your process of gathering and reviewing recent market transactions within the property to establish market rent? How did you validate this information by consulting with the investment and leasing team?
Explain the methodology you adopted when determining Fair Value for the shopping centre. How did you use the investment method, and what factors or calculations did you consider in reaching your valuation conclusion?
Describe your involvement in producing a long-form report for the client. What sections or elements did you contribute to, and how did you ensure compliance with RICS standards and guidelines for loan security valuations?
Reflecting on this experience, what have you learned about the importance of accuracy, attention to detail, and collaboration in loan security valuation processes?
