Leasing & Letting - L2 - Oct 2023 Flashcards
Explain a factor you have come across which impacts upon letting value / lease terms.
Access has an impact on the value and lease terms of a letting. I have dealt with units whihch had restricted access in the past and this always effects the value. Alos if there is a shared access arrangment or my client needed specific access for its operation this had to be documented adqequately in the terms of the agreement.
Explain an example of when you have provided marketing/leasing strategy to a client.
I have writted estate marketing and leasing strategies for my client in the past. This included details of the current and future tenant mix. I was involved in many refurbishment schemes of rows of units and had input on the change from vehicle repair lower value uses to many other business types which changed the make up of the estate.
Talk me through an example of when you have let a property.
437 Wanstead
What occupation costs did you Inform your client of at Bell Boats?
I negotiated with the landowner and advised my client on the costs and fees of the landlord. My client wanted some open storage and not to need exclusive occupation. The costs were agreed with my client and a licence entered into with the landowner.
How did you negotiate with the landowner on behalf of your client?
I met with the landower on site with my clients representitive. The detials of the requirements were discussed. Following a report to my client I negotiated with the landowner and agreed a price for the occupation.
Why was exclusive possession not needed?
My client wanted to store some materials on the land and the land was open to my client. Therefore exclusive posession was not needed.
How did the refurbishment of Wanstead Park Impact the value of the property?
The refurbishment of Wanstead Park (437) impacted the value of the property by improving the internal decoration, the flooring and the utilities. The unit was upon marketing a fully refurbished unit and therefore commanded a higher rate than some of the others along the row.
What health and safety Information did you need for marketing?
The health and safety information I needed for marketing was the EPC, Asbestos management information, electrical test certificate.
What was your clients’ estate management strategy?
I was the one that wrote the estate management strategy. The strategy was to gradually change the type of tenant at this location. As tenants left the vacant untis could be refurbished. It had historically been all car repair businesses. My client wanted to see tenants that were cleaner and less of a risk in regards to Health and Safety. Therefore I advised a change to the tenant mix and to introduce some leisure and bistro type uses that would bring footfall and begin the change to the tenant mix which it did.
How did you determine covenant strength of the tenant?
I determined covenant strength of the tenants in two ways. If it was a business I would look at how long the business had been in operation and what they credit score was. I could also look at registered accounts to see the business turnover. If it was a new company or an individual I would look at the personal credit score or ask for a higher deposit to cover the extra risk or a guarantor.
