Case Study Questions Flashcards
What age is the building?
Constructed in 1980’s
What was the construction of the building?
- brick elevation
- cavity wall
- traditional double pitched roof
- screed concrete flooring
- 10% office space
- adequate parking
- floor loading capacity (40KN per SM)
- 3 phase electricity
What was the EPC?
E
How do you contract out of LL T act 1954?
-Tenant gives up security of tenure under S24-28
- LL must serve notice on the tenant under the regulatory reform order 2003.
- if notice served 14 days or more before lease start then T simply signs declaration.
- If within 14 days of lease start date then T sign statutory declaration before solicitor or independent expert.
When requesting tenant accounts what are you looking at?
Profits and losses to obtain enough information on their covenant strength regarding the rent.
Be able to establish the profits test
What is the profits test?
Request three years of companies account
- if profits from last three years is three times the annual rent, they are viable.
How did you know the property was built here?
When my client bought they property it was stated on the report on title
Why did you measure on an GIA basis?
Wasn’t enough comparable on IMPS2 so had to measure on a dual basis
What is GIA?
Gross internal area
The area measured from the internal dominant facing wall at each floor level
What is the difference between GIA and IPMS2?
• internal balconies are included GIA, stated separately in IPMS 2
• external balconies are excluded GIA, stated separately in IPMS 2
• accessible rooftop terraces are excluded
GIA, stated separately IPMS 2
• areas occupied by reveals of windows at internal dominant face are excluded in GIA but included in IPMS 2
When can the tenant charge a premium on an assignment of a lease?
Market rent is higher than passing = assignee going to be better off so they have to pay a premium
How would you go about calculating a surrender premium?
Incorporate sc, rent, utilities, 24/7 security, agencies, vacant business rates
The user class of property?
Town and country planning act 1987 amended 21st April 2021 :
As of 31st August light industrial use has been superseded to class E
What is rateable value?
The VOA assessment of what the property would let for on the Open market if available.
Are there any business rate reliefs for commercial properties?
3 months for offices
6 for industrial