Leasing and Letting LV 2 + 3 Flashcards
“Explain a factor you have come across which impacts upon letting value /
lease terms”
“Rent review clause
- Alienation- barrier on sublet or assign
-break clause- affects the net effective Rent
- Repair responsibilities
- Security of tenure
-Service Charge”
“Explain an example of when you have provided marketing/leasing
strategy to a client.”
“Industrial Letting Scrag copse Farm
-Targeted mailshots to client list
- call client clist
-Press and internet advertising
- To LET board “
Talk me through an example of when you have let a property.
“Industrial Letting- Scrag Copse Farm
I acted on behalf of a landlord client on the letting of Scrag Copse
Farm, Ifield. Upon instruction, I first agreed Terms of Engagement
and then inspected and measured the space. I searched for market
evidence for the quoting rent and reported my opinion of the Market Rent, lease terms and marketability. I drafted marketing details and
uploaded it to the various agents websites.
I received a strong level of interest, marketing initially both for sale
and to let. The client decided midway through marketing that he
only wanted to rent the unit. I advised the client on merits of renting
vs selling and recommended the client proceed with the strongest
offer to let as this had the best covenant. I advised the client on the
lease terms and the rent as the tenants’ agent made an offer below
asking price for a 5 year term with a 3 year break clause and 3
months rent free. I advised the client that we should go back with a
straight 5 year term and meet the asking rent. I also analysed the
covenant strength by carrying out an Experian check. The tenants
agent agreed and the client accepted the offer. I drafted Heads of
Terms and completed the letting.”
Tell me about the acquisition you dealt with Sussex Partnership NHS
“Acquisition, Mid Sussex, Brighton and Worthing
I produced reports on a variety of locations for a retained client e.g.
Crawley, Mid Sussex, Brighton and Worthing for office
space/consultation rooms. Utilising agents’ societies and my own
research to produce availability reports and then accompanying
viewings with the client. This resulted in acquiring 1-7 Station Road,
Crawley for the client.”
“Tell me about a time you have acted on behalf of a landlord - Scrag Copse
Farm”
“Industrial Letting- Scrag Copse Farm
I acted on behalf of a landlord client on the letting of Scrag Copse
Farm, Ifield. Upon instruction, I first agreed Terms of Engagement
and then inspected and measured the space. I searched for market
evidence for the quoting rent and reported my opinion of the Market Rent, lease terms and marketability. I drafted marketing details and
uploaded it to the various agents websites.
I received a strong level of interest, marketing initially both for sale
and to let. The client decided midway through marketing that he
only wanted to rent the unit. I advised the client on merits of renting
vs selling and recommended the client proceed with the strongest
offer to let as this had the best covenant. I advised the client on the
lease terms and the rent as the tenants’ agent made an offer below
asking price for a 5 year term with a 3 year break clause and 3
months rent free. I advised the client that we should go back with a
straight 5 year term and meet the asking rent. I also analysed the
covenant strength by carrying out an Experian check. The tenants
agent agreed and the client accepted the offer. I drafted Heads of
Terms and completed the letting.”
Tell me how market research helped you to provide an opinion of value
I searched the market for recent comparables along with my market knowledge and company knowledge of the specific area to form an opinion of the ERV
Talk me through the benefits renting vs selling
“Renting the property can provide a good long term investment strategy and the property may appreciate over time
- allows you to maintian ownership and control of the property
- provides a steady income
selling
- immediate cash flow
- Avoiding landlord responsibilities
“
Tell me how you determined the strongest covenant - Industrial
“At the offer stage I requested 3 years audited accounts- profit and loss, balence sheet= profit or cash assets= 3 x rent.
I analysed the covenant strength and there was a clear leader. I assessed the financial performance of the company by carrying out an Experian check and looked at the company accounts on companies house “
Talk me through the disposal of an Industrial unit In Lloyds Court
“Industrial/office Units- Lloyds Court, Manor Royal Crawley
I was instructed to dispose of an industrial unit in Lloyds Court
Crawley. I advised the client of my opinions on Market Rent by
using comparables and my own knowledge of the local market
whilst utilising our data management system.
I advised the client to keep the mezzanine as I received an early
enquiry from someone who wanted to retain this. This resulted in an
agreement which was beneficial to all parties, namely the
prospective tenant, the outgoing tenant and my client and resulted
in a successful letting.
I advised a 6 month rent deposit based on my experience as this
was in line with the market for new start up companies.
The tenant’s offer included 6 month’s rent free. I advised the client
that I should counter at 3 months, being in line with the market
norm.
The tenant’s offer was below the quoting rent. I advised the client I
should counter at the quoting rent, in line with market levels. The
client agreed and I completed the letting”
“Explain why you advised your client to retain the mezzanine and what
effect this had on the transaction”
“I advised the client to keep the mezzanine as I received an early
enquiry from someone who wanted to retain this. This resulted in an
agreement which was beneficial to all parties, namely the
prospective tenant, the outgoing tenant and my client and resulted
in a successful letting.”
Tell me why you advised a 6 month rent deposit
“I advised a 6 month rent deposit based on my experience as this
was in line with the market for new start up companies.”
“How did you determine that 6 months rent deposit was In line with the
market?”
Through my experience of the Crawley market and company knowledge. The client was happy to accept a 6 month deposit
“Explain why you advised your client 3 months rent free was the market
norm?”
a 3 month rent free was in line with the market for a 5 year term and the tenant was taking the unit in the current condition.
“Talk me through how you dealt with a disposal of an Industrial unit In
Tunbridge Wells”
“Industrial Unit, Unit 3 Buckingham House, Tunbridge Wells
I was instructed to dispose of an industrial unit in Tunbridge Wells.
The property was a detached warehouse with a good sized shared
yard, loading area and first floor fitted offices. The tenant requested
proposals with a straight 10 year lease with a 5 year break. I
advised the client on the difference on rent free for the two
proposals because of the differing term certain.
I advised the client at the offer stage as I had two offers on the unit.
One of the parties had a lease expiry in 12 months so requested a
longer rent free period whereas the other offer had a shorter rent
free period and could move into the unit quicker. I advised the client after analysing both offers, that there was an
offer that had less intensive use of the yard area therefore not
affecting the tenants in the unit opposite. The client agreed.”
“Explain the advice you gave In regard to the different rent free for the
two proposal”
“The tenant requested
proposals with a straight 10 year lease with a 5 year break. I
advised the client on the difference on rent free for the two
proposals because of the differing term certain.
I advised the client at the offer stage as I had two offers on the unit.
One of the parties had a lease expiry in 12 months so requested a
longer rent free period whereas the other offer had a shorter rent
free period and could move into the unit quicker. I advised the client after analysing both offers, that there was an
offer that had less intensive use of the yard area therefore not
affecting the tenants in the unit opposite. The client agreed.”
