APC CASE STUDY Flashcards
What was the construction of the retail property?
Reinforced concrete frame (columns, beams, slabs)
Precast concrete floor planks
RAAC might be used in roof panels or suspended ceilings
Steel frame in some areas (especially for extensions or larger spans)
Reinforced Concrete: Some buildings also used reinforced concrete for the frame or floors, often combined with a steel frame or used for the upper floors of multi-story units.
Brickwork or Precast Concrete Panels: Exteriors were typically finished with brick or precast concrete panels, offering durability and fire resistance. Some might also have a combination of glazed brickwork or render on the exterior.
What defects are common in units 17A?
How did you inspect 17A in accordance with RICS Surveying Safely?
section 6 covers inspection
- I confirmed I had the competence, knowledge and skill to complete the inspection
- I assessed the risks prior to attending the site and noted there were very few, the main one being slip/trip hazards
3.I ensured I would personally be safe on site because I went with my manager, took a charged mobile phone and made my other colleagues aware of my location and when I was due back
4.I was aware of the ‘safe person’ concept whilst on site which meant I was responsible for my own, my colleagues and others health and safety
How did you measure Shared Earth in accordance with the Code of Measuring Practice?
I determined I would need to use NIA for valuing a retail unit
I reviewed the examples in the Code of Measuring Practice as well as the NIA definition
I measured the useable area and measured to the internal face of the perimeter walls but excluded toilets, cleaners cupboards and areas under 1.5m in height
What defects are common in units like Shake Shack?
dry rot
wet rot
damp penetration
structural movement around windows
Why did you use overall NIA basis for measuring 17A rather than zoning?
zoning is valuation technique used for comparing retail units with different frontage to depth ratios
all my comparable evidence was on NIA basis, rather than ITZA
likely due to small size of retail units
If the unit had been larger, how would you have used zoning?
I would have halved back in zones of 6.10m/20ft to express the floor area in terms of Zone A
I would have then multiplied by the market rent per sq ft at the Zone A rate
Return frontage, how would you have dealt with it?
I could have added an uplift for the depth of the return, depending on the pedestrian flow EG 5% uplift
if the pedestrian flow had been equal, then the whole unit would have become Zone A
How would you have measured the lower floor storage area if you had used zoning?
I would have taken a fraction of Zone A for the basement area
What did the client accountant look for in the internal credit check?
internal Workman client accountant carried out external credit check using CreditSafe which gives rating between 100 (low risk) and 1 (high risk) - predicts how likely a company is to fail in next 12 months
assessed Shared Earths creditworthiness based on their Company Registration Number
assessment is based on balance sheet, outstanding debt, payment history etc
score was low, at 30 whereas in 2015 when the T took on the lease the score was nearer 90
How did you determine Shared Earths covenant strength?
looked at profit and loss account
shows income and expenditure over a year
income = sales
expenditure = cost of goods, salaries, cost of running business (insurance, electricity, rent etc)
Compared to previous year profits and saw they used to be higher
What’s included in void costs?
Insurance, Rates and SC (£27,722.21)
What was the purpose of the update to the Use Classes Order in September 2020?
provide more flexibility
provide greater freedom
buildings can change use without planning
Class E = shops, restaurants, cafes, gyms, nurseries, health centres, professional / financial services
How would you have surrendered the lease?
T would have had to request surrender
LL would not have had to agree (T would have had to wait and exercised break instead in September 2025)
if LL did agree, may have requested premium from T for early surrender
Note: LL could ask T to surrender in exchange for reverse premium
What is included in Sui Generis? (Latin ‘Of its own kind’)
Theatres, nightclubs, casinos, car showrooms
Purpose of Statutory Demand?
Preliminary step to winding up petition (liquidates tenant)
How can Landlord right to forfeit be waived?
agree payment plan with T instead
CRAR exercised
s25 notice served under LL&T Act 1954
What are Tenant rights under CRAR?
can apply to Court for order that no further steps can be taken without permission from Court
What are key considerations when reviewing rent arrear recovery methods?
chance of re-letting the property
current passing rent v market rent
vacant possession value (and void costs) compared to value as let
How can a Landlord forfeit a lease for failure to repair?
must be forfeiture clause in lease
serve S146 notice in tenant (state breach, timeline and proposed action)
What are the company accounts you reviewed?
Profit and Loss Account (Income Statement) -Shows the company’s revenues, expenses, and profit or loss over a specific period.
Helps assess profitability and financial performance.
Balance Sheet (Statement of Financial Position) - Summarizes the company’s assets, liabilities, and equity at a given point in time.
Indicates the financial stability and net worth of the business.
Cash Flow Statement - Details the cash inflows and outflows from operating, investing, and financing activities.
Helps understand the company’s liquidity and cash management.
Statement of Changes in Equity - Shows changes in the company’s equity due to profits, losses, dividends, or share issuance.
What is the importance in company accounts?
Legal Compliance: Required for regulatory filings (e.g., tax authorities, Companies House in the UK).
Financial Decision-Making: Helps management and investors assess performance.
Tax Calculation: Used for corporate tax filing and payments.
Investor Confidence: Provides transparency to shareholders and potential investors.
What is CRAR?
- introduced in 2014 to replace Law of Distress for rent
-recover rent, VAT and interest
- 7 days rent due as minimum
LL serves Notice of Enforcement via email/post/hand-delivered which states address, T type, due date of most recent funds and any notes
Notice of Enforcement (Parkinson Bailiffs) gives 7 days notice
- on day 8, enforcement agent enters and takes inventory and ‘takes control of goods’
enforcement agents waits 7 days before selling goods
T charged £75 for service
Note: cannot take goods that are on purchase agreements or belong to 3rd parties, anything that will breach the peace, work tools (if worth less than £1350) or perishable goods
CRAR Legislation
Tribunals, Courts and Enforcement Act 2007 (TCEA 2007) – Part 3, Chapter 2
The Taking Control of Goods Regulations 2013
The Taking Control of Goods (Fees) Regulations 2014
