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FELIX HOLLAND RICS FINAL CARDS > Case Study > Flashcards

Case Study Flashcards

1
Q

Please describe the layout of your industrial property?

A
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2
Q

What is the user class of your case study?

A

User class was B1C - light industrial use within a residential area

Now superseded by Class E as of 1st sept 2020

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3
Q

I note your tenant was contracted out of the Landlord and tenant act 1954. How was this done?

A
  • give up security of tenure
  • 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.
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4
Q

Difference between GIA and IMPS2

A

Internal balconies - GIA included/IMPS2 stated separately

External balconies - GIA excluded/IMPS2 stated separately

Accessible rooftop terraces - GIA excluded/IMPS2 stated separately

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5
Q

You did a credit check to determine tenants covenant strength, how?

A

Dunn and Bradstreet

  1. Financial strength (A-E)
  2. risk indicator (1-5)
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6
Q

How to inspect in accordance with surveying safely ?

A

-Carry out a risk assessment before visiting
-Check in with RFM
-Let the tenant aware if you are needing demise access
-Take charged phone, put in outlook diary
-Let colleagues know what time to come back
-sign in and out of site

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7
Q

You looked on companies house to review tenants financial accounts. What governs the format the company accounts?

A

The Companies Act 2006

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8
Q

What is included in company accounts, as laid out in the Companies Act 2006?

A
  • cover page
  • information and contents
  • Directors report
  • Accountants report
  • profit and loss account (income statement)
  • balance sheet
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9
Q

Why did you measure on GIA and not IPMS?

A

As a chartered surveyor I’d advise and encourage to use IPMS however client wanted GIA.

Wasn’t enough comparable data in GIA

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10
Q

If you have been doing a lease renewal for some time, and gone beyond contractual lease expiry date. What would you do?

A

Call for interim rent - S24A

Calculated based on market rent

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11
Q

Aim of LL and Tenant Act 1988?

A

S1 states consent must be provided reasonable timeframe (no delays)

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12
Q

Aim of LL and T Act 1927?

A

S18 - Limits the amount of damages a LL is able to recover for breach of T repairing covenants

S19 - States consent must not be unreasonably withheld

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13
Q

9 Mandatory requirements in SC Professional Statement?

A
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14
Q

Walk me through how you would do a rent review?

A
  1. Receive client instructions
  2. Check competent
  3. Check if any Conflicts of interest
  4. Agree a few
  5. Check RR clause and see if there is a LTA in place.
  6. Inspect and measure.
  7. Collect comparable and make recommendation to the client
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15
Q

assumptions?

A
  • property is fit for use
    -property is vacant
  • tenant has not been in breach of lease (obligations)
  • the lease term
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16
Q

Disregards?

A
  • any goodwill
  • tenants occupation
  • some improvements
17
Q

Difference between balance sheet and income statement?

A
18
Q

Landlord and tenant covenant act 1995?

A

Authorised guarantee agreement (AGA)

19
Q

What is the data protection act 2018 and the 7 principles of it?

A
20
Q

What does GDPR stand for and what are the 8 rights under it?

A

General Data Protection Regulation

  • right to information
  • right to access
  • right to rectification
  • right to erasure
  • right for restrict processing
  • right to data portability
  • right to object
  • right to automated decision making
21
Q

What and when would you use the investment method?

A

Market value (net of outgoings) x years purchased

= market value

When you have an income stream to value

22
Q

How would you value a reversionary investment?

A

Term and reversion (under rented)

Term
Get your net income (annual rent) and capitalise this until the end of the lease with a lower yield (risk is lower as it’s below market rent)

Reversion
Get your market rent and capitalise this at a higher yield (reflect the risk) into perpetuity. You then discount it back to PV£1 as there is time left on term. Market rent is not coming in until then.

23
Q

What are exceptions to the red book?

A

Internal purposes - for client to know market value of property

Agency - advertise price if getting interest up it, if not lower it

Statutory functions - where the law tells us what to do (lease renewals, rating, compulsory purchases)

Acting as a expert witness - arbitrator or expert would tell you what to do

24
Q

Workman’s management agreement?

A
25
Q

What determines how much you inspect your properties?

A

-client requirements
-workman requirements
-insurer requirements (if vacant)

26
Q

What are the purposes of inspection?

A

Valuation
Purchase or sale (agency)
Property management (breach of lease)

27
Q

Rent is inclusive how do you CRAR/apportion it?

A

Deduct the rates and service charge

It will be an approx figure

28
Q

Net effective rent?

A

Rent that incorporates rental concessions

Rent including rent free period

29
Q

Break notice?

A
  • 6 months before the break date
  • must be in writing to LL address
  • have to give vacant possession

FELIX HOLLAND RICS FINAL CARDS (13 decks)

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