Mock Interview Raised Questions / Submission Questions Flashcards
1
Q
GIS - What is a shapefile?
A
a shapefile is a geospatial data file that records the shape, size and location of an item that has a place in the world, allowing to also add additional attributes to record the data that clients are interested in
2
Q
GIS - How is using GIS beneficial, e.g. for N-Gen?
A
Allows me to provide my client with a visual representation of data and information surrounding a scheme. It is easy to navigate and user friendly, and the ability to present all the required information within shapefiles, improves the efficiency of a scheme.
3
Q
GIS - What is GIS?
A
A GIS (Geographical Information System) is a Geospatial system used to record, manipulate and display data
4
Q
Measurement - What are the main types of measurement?
A
GEA - Gross External Area
GIA - Gross Internal Area
NIA - Net Internal Area
5
Q
Measurement - What measurement did you use when measuring Towngate Farm? And why?
And how was this measured?
A
GIA - Gross Internal Area
The measurement was for valuation purposes, and is also the measurement used for the pricing provided by the Building Cost Information Service.
Measured to the internal face of the perimeter walls, excluding the width of the outside walls.
6
Q
Inspection - What is a risk? What is a hazard?
A
Hazard - anything that could cause harm
Risk - combination of:
- likelihood of occurrence
- severity of outcome
7
Q
CP and Comp - What is the no-scheme rule and what is the Point Gourde principle?
A
This is where the effect of the scheme underlying a CPO is required to be disregarded in assessing compensation.
8
Q
CP and Comp - What heads of claims are expected in a utility / National Grid scheme?
A
Disturbance only
9
Q
CP and Comp - What heads of claims are expected in a claim surrounding a CPO?
A
Land Taken
Disturbance
Loss Payments
Severance & Injurious Affection
10
Q
CP and Comp - Interests in table 2?
A
Lesser interests, people with rights of way, easements, mortgages, restrictive covenants.
11
Q
Access and Rights - What act is a s.6 served under?
A
Northwest Water Authority Act 1977 -
NOT the Water Industry Act 1991!!!
12
Q
Access and Rights - Who are relevant interests? E.g. when serving a notice?
A
Anyone with a legal interest in the land concerned, such as land owners and leaseholders
13
Q
Valuation - What are the basic principles of a DCR valuation?
A
The depreciated replacement cost method of valuation is calculated by identifying the cost of building the equivalent building, reduce by a factor to reflect its age and level of depreciation, plus the cost of purchasing the land.
14
Q
Valuation - How did you establish the yields used for the Meco valuation?
A
I established a yield of 10% through discussions with local agents for open-storage yields in the location.
This was used for the term.
I then increased the yield to 11% when calculating the reversion to reflect the increase risked.
15
Q
Valuation - You mentioned on the Meco valuation that no deductions were required as it was on FRI terms. What deductions would usually be required?
A
- Maintenance & repair costs
- Service charges / Running costs
16
Q
Valuation - What are the mandatory reporting requirements?
/
You mention you are aware of what is required in a Red Book Valuation.
Where is this in the Red Book and what is required in a Red Book Valuation?
A
Set out in VPS 3
Sets out what should be included within a Red Book Valuation, e.g.
- Valuer & Client Details
- Assumptions and Special assumptions
- Purpose and basis of valuation
- Valuation date
17
Q
Valuation - What PI do we have, e.g. for the Bank valuation?
A
Bell Ingram have professional indemnity insurance in place with a limit of indemnity worth £10,000,000.
18
Q
Access & Rights - Where is a necessary wayleave in the Electricity Act 1989?
A
Schedule 4 of the Electricity Act 1989
19
Q
What has been abolished from the AHA Succession process / Eligibility test?
A
The commercial test
20
Q
What is a firms minimum limit of indemnity?
A
Depends on the firms turnover in the previous year:
£100,000 or less = £250,000
£100,001 - £200,000 = £500,000
£200,001 and above = £1,000,000
21
Q
What is a firms minimum run-off cover?
A
A minimum of £1,000,000 in all for a period of 6 years.
22
Q
What is Professional Indemnity Insurance?
A
Insurance which covers the cost of compensating clients for loss or damage resulting from negligent services or advice provided by a business or an individual.
23
Q
What is Run off cover?
What is the minimum policy requirements / minimum run-off cover for an RICS accredited company?
A
professional indemnity insurance cover provided for the past liabilities of a business once it has ceased trading.
A minimum of £1,000,000 in all for a period of 6 years.
24
Q
What is Public Liability Insurance?
What is Bell Ingram’s Policy cover?
A
Insurance which covers the cost of claims made by members of the public for incidents that occur in connection with business activities.
£10,000,000
25
What is employer's liability?
What is Bell Ingram's cover / Indemnity limit?
Insurance which covers the costs of employee claims for illness or injury caused by their work due to employers' negligence.
£10,000,000
26
How do you carry out a comparable valuation?
I obtain good comparable evidence through discussions with local agents and rightmove + to allow me to provide an accurate indication of value.
27
When is an investment valuation used and how do you carry out an investment valuation?
An investment valuation can be used where there is an income stream to value, such as a property which is leased out.
Methods include Term & reversion, and Discounted Cash Flow.
28
When is a DRC valuation used and how do you carry out a DRC valuation?
It is used to value properties where this is no active market, such as a mosque.
The depreciated replacement cost method of valuation is calculated by identifying the cost of building the equivalent building, reduce by a factor to reflect its age and level of depreciation, plus the cost of purchasing the land.
29
Where is secured lending in the Red Book?
What’s a forced sale?
What’s the marketing period?
VPGA 2
A forced sale is where whoever obtained the loan cannot pay the debt, and is forced to sell the property to pay this back.
The marketing period is commonly assumed to be between 90 and 180 days.
30
What goes into Land Designations?
Found on Magic Maps
These can include:
- Nature Reserves
- SSSI's
- Green Belt
31
What goes into a local plan?
- Land designations
- Planning applications
32
How does a property’s characteristics affect a valuation?
Characteristics such as the size, condition, and location can have an impact on a valuation.
E.g. Bigger property with more bedrooms can increase it's value
Being in a prime location can increase it's value
If the property is in poor condition with lots of defects, this can reduce the value of a property.
33
How are NPG claims calculated?
They are calculated by establishing the value of the property, multiplying this by a percentage which is based on what equipment they have and its distance from the property, and then multiplying this by 50% which is an industry standard.
34
What is a wayleave?
A terminable agreement linked to the owners or occupiers, rather than the land itself.
35
What is an easement?
a permanent agreement linked to the land itself rather than the owner or occupier.
36
What is the difference between a wayleave and an easement?
A wayleave is a terminable agreement with the owner or occupier, not with the land itself and is not binding on the successors.
An easement is a permanent agreement against the land itself, is on the land title and is binding with the successors.
37
Why do NPG look to secure a wayleave rather than an easement?
What are the reasons NPG would look to secure a wayleave or an easement?
NPG do look to secure easements as well, but it depends on the value of the offer provided.
Any offer above £7,000 is reviewed to decide whether the client wishes to secure a wayleave or an easement.
A wayleave has a financial advantage in comparison to an easement, but is attached to the owner and once the property is sold, the new owner is entitled to enter into a new wayleave agreement.
An easement costs more than a wayleave, but is against the property and secures rights to the asset for the period of the term (NPG is 20 years).
I am aware off other distributers who are now looking to mainly obtain easements rather than wayleaves to prevent the occurrence of repeat claims.
38
What restrictions were in place at the Prescott valuation?
A restrictive covenant which did not allow for any development on top of the asset.
39
Why was the Prescott valuation a Red Book if it was for internal advice?
Because the client requested for it to be in line with the Red Book.
40
Do you think using the comparable method of valuation was the correct method when carrying out the Prescott valuation?
Then why did you carry out an investment valuation when calculating the expected increase in profit?
And why did you assume a developers profit of 15-20%?
I do - there was good comprehensive comparable evidence available for the purpose of the instruction.
This was part of wider commentary to inform the client of the developers position in regards to their negotiations.
For example, if the developer is expected to make a profit worth £100,000, but the offer made by my client was worth £80,000, it is unlikely the developer would consider proceeding.
I was working alongside a senior colleague who specialises in this area of valuation and advised on these percentages.
41
How could lifting the restriction affect the valuation?
Could the rest of the development not affected by the restriction have been developed on?
Lifting the restriction would allow for the planning to be approved, therefore increasing its value from it's existing use to its value as a development plot.
Without the restriction being removed, the development could not obtain planning in line with its proposed application. Therefore planning would not be approved and no development could have taken place.
42
What purposes have I written valuation reports in line with the Red Book for?
- Purchases
- Secured Lending
- Internal advice
43
What external factors could have an effect on a valuation?
- The economy
- The location
- Planning permission
- Market conditions
- Land designations
- Flood risk
44
How is a Secured Lending Valuation different to a purchase valuation?
Adhere to the guidance under VPGA 2
- Although it is in line with the Red Book, it is based on a template provided by the bank with all the information they require set out.
45
In the Cookstool Farm Secured Lending Valuation, did the equestrian use effect the value of land? And why?
The equestrian use increased the value of the land do to the nature of it's market, usually commanding higher prices.
46
What comparables did you obtain for the secured lending valuation? And how did you come to the price per acre?
I obtained comparable evidence for both agricultural land and equestrian.
Agricultural achieved approximately £15,000 and Equestrian achieved approximately £30,000.
We advised on a value being closer to £20,000 to reflect it's current use as good agricultural land but with the ability to be converted to equestrian.
47
What is good security against a loan?
Where a loan is a good and secure investment for the bank
48
What do you look for when inspecting the land and what goes into an inspection report?
When inspecting land, we look for:
- If there is any crop on the land / the use of the land
- the condition of the land
- If there are any defects
- The condition of gates, fencing, hedges
An inspection report includes:
- A date of inspection
- Who is carrying out the inspection
- The property name and address
- A description of the land
- The use of the land
- The condition of the land
- Note any defects
49
If you had inspected the property 6 months ago, and you are asked to carry out a valuation again, do you need to inspect the property again?
Not always necessary, for example, if it was my clients land and there was no changes.
But most of the time, yes I would re-inspect the property.
50
Was the Devoll Meco valuation a Red Book valuation?
Why?
No
It was for internal use and for negotiation.
51
How did you value the Devoll Meco land?
I did a Term and Reversion Valuation.
52
Did you back up the income figures provided by the landowner for the Devoll Meco valuation?
I collated my own comparable evidence for rental values for open-storage properties in the area which was used as the basis for my calculation of the reversion.
53
How did you establish the yield for the Devoll Meco valuation?
I was generally aware of yields through market updates, but I also established market rents and market value of open-storage properties in the location to calculate the yield, which generally came in at around 10%.
54
What is the difference between an All Risks Yield and a Net Yield?
Unlike an All Risks Yield, A Net yield incorporates some aspects of non-recoverable costs in operations.
A Net Yield yield does not forecast the future performance of the property, whilst an All Risks Yield does.
55
Are you aware of any other legislation other than the Water Industry Act and the Electricity Act? And how do they differ?
I am aware of the Gas Act although I have not been involved in any instructions surrounding the act.
I am aware that similar to the electricity act, rights are limited in comparison to the water industry act, and that access arrangements are usually obtained through voluntary agreement.
56
What is the process of obtaining rights over land?
Either voluntary agreement, or where possible, serving of notice.
57
What statutory rights have you used when negotiating accesses?
s.168's and s.159's of the Water Industry Act 1991.
58
With the National Grid line, why did you need to carry out land referencing, and what does that give you?
To establish up-to-date landowner details.
Gives me accurate landowner information surrounding a scheme.
59
What are accommodation works?
measures implemented to reduce the impact of the works carried out.
This can include passing places, stock-proof fencing, new access roads.
60
When working on National Grid, what would you have done if the land did not have a wayleave or an easement in place?
I would look to obtain access through voluntary agreement.
I could look to agree a wayleave or easement to obtain the rights.
I could also secure a licence over the land.
61
Tell me about a claim you negotiated and settled on the National Grid scheme.
How did you calculate this?
How did you settle the fees?
A claim was submitted for loss of grazing as a result of the works.
I measured the area that was affected and then I was able to obtain a price per acre through sources such as agricultural agents and the Agricultural Budgeting and Costing Book.
Fees were based on the distributers own fee scale.
62
What was the existing asset at Utkinton WwTW?
A Waste Water Treatment Works
63
If you had served the s.159 but the landowner had refused access, what could you do?
Apply for a magistrates warrant
64
When serving a notice, who is a qualified interest?
Anyone with a legal interest in the land, such as the owner or occupier.
65
Why could you not serve notice to secure the compound at Utkinton WwTW?
Then why were you able to serve the s.168 for the Topographical surveys?
The works did not involve a relevant pipe.
The extent of the land required for the topographical surveys did involve a relevant pipe.
66
What was included in the license for Utkinton WwTW? What terms were agreed?
- Licensee and Licensor details
- Licence period
- Licence Fee
- Extension period
- Termination
- Reinstatement
- A plan
Terms agreed included a weekly payment of £350 per week for a 12 month term.
67
What rights did you have over the land with the horses on SPEN?
We had rights through a wayleave, including the field with the horses.
68
Why was post & rail fencing required for the SPEN AG landowners land?
The horses had never been exposed to electric fencing so this was not sufficient.
Livestock fencing was not sufficient as the horses can get tangled up.
Post & Rail was the only fencing to ensure the health and safety of both the horses and the contractors.
69
Could you have not served notice to secure the rights to the land at Duddon?
No as there was no relevant pipe.
70
Why was the additional license required at Duddon?
The purchase would not have completed within the timescales provided by the project. Therefore, the additional licence obtained the rights to the purchase area until the purchase completed.
71
What was included within the HOT’s for Duddon?
- Purchaser details
- Vendor details
- Agents details
- Consideration
- Boundaries
- Vacant possession
- Fees
72
What is the process of a Discounted Cash Flow valuation?
estimates the money an investor might receive from an investment.
you calculate this by provide estimates of future cash flows, establish the interest rate, and then put this into the DCF formula.
73
Case law: Street v Mountford
Street v Mountford (1985)
Case law which distinguished between a lease and a licence.
Was held that the licence agreement was actually a lease.
74
Case law: St Johns College v Thames Water
Held that the water authority was to pay compensation based on 50% of the land value with vacant possession.
75
Case law: Horn v Sutherland
Established the Principle of equivalence
76
Case law: Pointe Gourde Quarrying & Transport Co v. Sub-intendent of Crown Lands (1947)
Established the Pointe Gourde principle / No scheme principle.
77
What CPD webinars did you attend regarding Compulsory Purchase and compensation, and what was the learning outcome?
Recently attended a "CPO - Talking Heads" webinar.
There was discussion surrounding the RICS' update to the "Surveyors advising in respect of compulsory purchase and statutory compensation" professional standard, which will become effective from the 23rd December 2024.
Lots of discussion surrounding fees and what is to be considered as reasonable in relation to the works required.
78
What is the guidance for compulsory purchase and compensation?
Surveyors advising in respect of compulsory purchase and statutory compensation.
79
What is no-scheme principle / Point Gourde principle?
This is where the effect of the scheme underlying a CPO is required to be disregarded in assessing compensation.
80
What is a schedule of interest?
A document which sets out the different land interests affected by a CPO.
81
What notices did you issue in regard to Compulsory Purchase and Compensation?
- Land interest notices for unregistered land.
- Notices of making
82
What did you do when responding to the formal objections? Can you give 1 example?
We reviewed the objections to understand why the objection was made and to see if we could get them removed prior to the Inquiry.
One company objected as the proposed works would have blocked the access to their site. We identified that they had another access which they were unable to use due to restrictions by the council. We wrote to the council to see if they would remove such restrictions for the duration of the CPO. They agreed to this, and the objection was removed.
83
Can you run through a claim you have recently negotiated?
What went into the heads of claim?
A claim was submitted for loss of grazing as a result of the works.
I measured the area that was affected and then I was able to obtain a price per acre through sources such as agricultural agents and the Agricultural Budgeting and Costing Book.
Heads of claim included:
- Disturbance
- Loss of crop
- Fees
84
What section of Water Industry Act covers compensation?
Compensation is assessed in accordance with schedule 12 of the Water Industry Act 1991
- Freehold depreciation
- Crop loss
- Reinstatement
- Disturbance
85
How did you know the claim was going to be high value when acting on the National Grid scheme?
High valued claims can be identified through the following:
- long access routes / a number of towers
- potential crop loss
86
How would you have dealt with an over inflated claim when acting on the National Grid scheme?
- I would review the claim and ask the claimant to evidence the claim, e.g. quotes and invoices.
- For elements that can't be evidenced, I would obtain my own prices through discussions with agricultural agents or the Agricultural Budgeting and Costing Book.
- This would then be used to negotiate and settle the claim at a fair and reasonable amount.
87
What is a blight notice?
This is when a landowner serves a blight notice on the acquiring authority seeking them to purchase the land at open market value.
88
How were powers for CPO obtained by HS2?
It was an Act of Parliament.
89
Was there safeguarding in place for that property for HS2?
Are you aware if the safeguarding has been removed due to the cancellation?
No safeguarding for commercial property's.
In regard to residential property's, safeguarding has been removed between the West Midlands and Crewe.
90
What formal notice needed to be served to allow the claimant to make a claim (HS2)?
A compulsory Purchase notice
91
What is a book of reference? What is the purpose and what is included?
A document which sets out the different land interests affected by a CPO.
Interests include freehold interest, leasehold interests, rights of way, easements, restrictive covenants.
92
What rights does a landowner have in respect to compensation in CPO?
Compensation where land is taken
Compensation where no land is taken
93
What is the difference between a CPO schedule and a book of reference?
Book of reference is not submitted as part of the CPO process.
Book of reference acts as a land referencing schedule. which compared to the CPO schedule, includes contact details, and the extent of full ownership rather than rights specific to the CPO.
94
What landowner details did you need to establish for the CPO schedule? And what additional interests / relevant details?
owners, occupiers, tenants, easements, rights of ways, restrictive covenants.
95
Why was land registry details over 3 years old not sufficient?
These were not up-to-date or accurate.
96
In the instance a parcel of land was unregistered, and you received no information from the site notice, what would you do?
I would continue to make efforts to try and establish the land ownership details and if not possible, rights to the land would be captured through the CPO.
97
What information did you put into your questionnaire?
Land ownership details and contact details, leasehold details, other land interests, a plan to confirm ownership extent.
98
What information did you include in table 2 of the CPO schedule?
Lesser interests, such as easements, right of ways, restrictive covenants, mortgages.
99
What schedule did you assist in drafting for Sheffield CPO? How was this formatted?
The CPO schedule
Set out in line with The Compulsory Purchase of Land (Prescribed Forms) (Ministers) Regulations 2004
100
How long was the duration of the objection period?
3 weeks from the date of the notice.
101
What advice did you give your client (Sheffield cables)?
Advised that we have complied with CPO guidance, including that all site notices had been erected and displayed on site for the full duration of the objection period.
102
What advice was given to the objections (Sheffield cables)?
One company objected as the proposed works would have blocked the access to their site. We identified that they had another access which they were unable to use due to restrictions by the council. We wrote to the council to see if they would remove such restrictions for the duration of the CPO. They agreed to this, and the objection was removed.
103
Can you tell me about some of the procedures to be followed before, during, and after a site visit?
Before:
- Risk assessment
- Car checks
- Check travel routes
- PPE
- Phone is charged
During:
- Dynamic Risk assessment
- Wear appropriate PPE
- Inform colleagues of whereabouts
After:
- Record any accidents / near misses if there are any
- Complete inspection report
- Inform colleagues I have finished and leaving site/arrived home safely
104
Can you tell me an example of a logical inspection methodology you have done?
NPG:
- desk-top review using google earth/maps to identify safe travel routes and most efficient order of inspections.
- Follow the inspection report, starting with an internal inspection and then an external inspection, taking photo's as evidence
105
What purposes have you inspected the range of properties for?
- purchases
- Licence agreements for compounds
- Injurious affection claims
- Compensation / damage claims
- Pre & Post record of conditions
106
What is an injurious affection claim?
In regard to NPG, an injurious affection claim is a claim which is made as compensation to reflect for the impact that the electrical equipment has on the value of the property.
107
What things do you look for when inspecting a property for NPG claims?
- Condition of the property
- Characteristics of the property
- The location of the property
- Any defects
- The equipment located on the property
108
How do you calculate a NPG claim?
Property valuation
x
A percentage based on the equipment and it's distance from the dwelling
x
50% (Industry standard)
109
In the instance a claim was made on a property you could not access, what would you do?
I would inform the client (NPG) of this and ask if they were happy for me to proceed on the information we have.
If so, proceed as usual
If not, put the claim on hold until access is provided for the inspection to proceed.
110
What is the purpose of the pre and post inspection?
establishes the condition of the property before and after the works have been completed.
Provides evidence for any claims that may be made as a result of the works, and if the works actually caused the damage and losses being claimed for.
111
How would you have dealt in a situation where you didn’t understand what crop was on the land?
I would take a photo as evidence and then either look this up on the internet or ask a colleague who specialises in agriculture.
112
Was your client happy with the proposal at Bispham Green? Can you explain how you dealt with this proposal, and what advice you gave?
They were happy.
I advised the reduced purchase area would remove the landowners concerns and reduce the cost of the land purchase.
I sent a plan of the proposed purchase area to the project manager to make sure it was big enough to facilitate the proposed works.
113
I advised the equipment should be removed – why has this not been done?
The claim is still on hold.
NPG need to review the cost implications of removing the equipment against the cost of continuing to secure the rights to the equipment.
114
What would you have done if the client didn’t take your advice and needed to get on before the crop was taken?
- Carry out a pre-record and post record of condition as evidence for any potential claim.
- Provide the client with an estimation of the value of the potential claim.
115
Difference between General Vesting Declaration and a Notice to Treat?
Both are very similar, but a General Vesting Declaration can obtain the title more quickly but can take longer to gain possession and for development to start. A notice to Treat has a longer process to obtain the title, but can possibly gain possession and start development earlier than a General Vesting Declaration.
116
What section under the Electricity Act do Necessary Wayleaves fall under?
Schedule 4 of the Act
117
What are the 3 types of wayleave?
- Necessary
- Expressed
- Implied
118
Aside from reviewing Land Registry, how else could you find up to date landowner details for your scheme at Utkinton WWTW?
- Issue s.6 notices
- Ask the neighbours
119
What is an ‘affected party’ in relation to serving notices for this scheme?
Anyone with a legal interest, such as owners or occupiers.
120
Why was the compound not included within the Notice to under surveys?
There was no relevant pipe therefore didn't qualify under a notice.
121
For the AG 132 kV Overhead Line project, why did you fence off the working area and tower instead of fencing off the horses elsewhere?
There was no other location for the horses to be located for the duration of the works.
122
If the fence had broken during the works, how would you of advised your client?
- To inform contractors to stand down on H&S basis
- Put measures in place
- Rectify fencing
- Accident logged as learning lesson for client
123
For the Duddon WWTW scheme, can you name us 6 headings that were included in your HOTS for the land purchase?
- Purchaser details
- Vendor details
- Vendors solicitor
- Vendors Agent
- Consideration
- Access
- Boundaries
- Vacant Possession
- Fees
124
What were the benefits of a license over a lease for your client in this situation?
Securing a licence was quicker for my client to obtain the rights.
125
Why is it important to have detailed inspection notes for a valuation?
- Set out in VPS2
- Necessary to produce a valuation which is professionally adequate for its purpose
- Audit trail
126
Can you define the difference between a hazard and a risk?
Hazard - anything that could cause harm
Risk - combination of:
- likelihood of occurrence
- severity of outcome
127
For your Northern Powergrid IA claims, what did you consider during your internal inspections?
- Property characteristics
- The condition
- Noted any defects
128
What is your companies lone working policy?
- To inform of my whereabouts at all times, when we have left for site, when we have left site, when we have arrived home
- To ensure we have the appropriate PPE
- To carry out risk assessments
- To report any incidents / near misses
129
When inspecting Bispham Green, did you advice on any H&S factors you found during inspection?
Yes - we identified that the access was on a blind corner, and that the appropriate measures would need to be put in place to manage this.
130
What desktop exercises would you recommend to be undertaken if you client wanted to purchase a parcel of land?
- Land Registry checks
- Planning checks
- Land designation checks
- Flood Risk checks
131
If you client asked you how to find the age of the property known as 4 The Croft, how would you do it?
- Check the land registry documentation to see when it was registered
- Ask the property owner
- Identify key architectural features
132
Did you identify any issues during your inspection that would affect your clients ability to remove the apparatus?
Yes - access to the tower was fairly narrow and through a wooden gate. The appropriate measures and works would need to be put in place to ensure that any machinery could access the tower whilst ensuring the H&S of everyone involved.
133
For the NG ZQ steelwork scheme, did you advice on any alternative routes prior to re-arranging the program?
- Inspected whole site
- Any alternative route would have affected the crop
134
When the crop was taken off, would it of been beneficial to reinspect the land prior to your client undertaking the works?
Yes - I did. It is important to capture the condition of the land as it is before the works commence.
135
If the farmer took access to the land with machinery during an inspection, what would you do?
- Carry out a Dynamic Risk Assessment
136
What is the difference between assignment and sub-letting?
Assignment is where a new tenant takes over the lease.
Sub-letting, you are still the tenant of the lease but enter into a contract with a "sub-tenant".
137
What is the prescribed Form for Contracting out?
Health Warning Notice
138
What part of the L&T54 act covers business tenancies and compensation?
Part II
139
In Sept 2024, what test was being abolished from AHA 86 succession tests?
The commercial test
140
Assuming the lease was a protected tenancy, what reasons could a landlord serve S25 to remove the football club from site?
- If Landlord wants to develop site
- Breaches of covenant / contract
- Premises and Disrepair
- Rent Arrears
- Landlords intention to occupy
141
what clauses did you remove from the agreement and why? (SSE Fiddlers Ferry)
- Changed to the updated name and address of the landlord / company
- Removed clause for rent arrears to be paid on a prescribed rate until the date when payment is made
- Removed clause that the landlord shall perform it duties and obligations as lessee under the superior lease
(Requested by the lessor and deemed not unreasonable).
142
What is the definition of the rent payable under an FBT?
The rent at which the holding might reasonably be expected to be let on the open market by a willing landlord to a willing tenant taking into account all relevant factors
143
What is a section 1(4) notice and why would it be important to your client?
confirms the Landlord's intention to create a farm business tenancy under the Agricultural Tenancies Act 1995
144
What notice would you serve to terminate a FBT over 2 years?
Section 5 notice to quit
Needs to be served at least 12 months before expiry.
145
Can you provide one alteration CWT asked for that you advised on?
Originally on a yearly FBT, changed to a 5 year term to allow the CWT to be eligible for Countryside Stewardship Scheme.
146
What is an agricultural holding under aha86 act?
- Must be agricultural land
- Must be used for business
- Must satisfy Section 1
147
FBT rents in your area?
Equipped Farms = £300-£400 per acre
Bare land = £150-£250 per acre
Depending on Land Usage
148
What are the options for dealing with a rent arrear?
- Payment Plan
- Guarantor
- Draw down on Rent deposit
- CRAR (Commercial Rent Arrears Recovery)
- Statutory Demand
- Surrender / Forfeiture
149
What is the key legislation around gas inspection?
The Gas Safety Regulations 1998
150
What are the regulation specific to Abestos?
Control of Asbestos Regulations 2012
151
What is the key legislation for electrical safety in residential property?
The electrical safety Standards in the Private Rented Sector
152
What laws govern Occupiers Liability ?
Occupiers Liability Act 1957
Occupiers must keep visitors safe for the purposes of their visit
153
Tell me about the proposed EPC changes?
Changes were scrapped and are still minimum rating of E.
Proposed changes to a minimum rating of C for Rental properties by 2030.
154
If the lease is silent on a repair and obligation matter, where would you refer to?
What items would you expect to find in the Models Clauses?
If there is nothing in the lease, refer to model clauses
Landlord -
- External and Structure to the building
- Pipework and Sewage
- Gas work and electrical systems
Tenant -
- Fixtures and Fittings
- Hedges and Fences
155
Why did you review the leases prior to the inspection?
- To understand if it is a landlord or tenant obligation
156
How do you define a Bribe?
A gift or incentive offered unethically as an attempt to gain an advantage.
157
What are the 6 principles of the bribery act?
1 - Proportionate procedures
2 - Top level commitment
3 - Risk assessment
4 - Due diligence
5 - Communication
6 - Monitoring and review
158
Maximum Fine under Bribery Act 2010?
Unlimited fine, maximum sentence of 10 years.
159
What are your companies Anti Bribery Policy?
Sets out:
- What a bribe is
- Consequences of bribery
- And responsibility for compliance with the policy.
160
What should you consider before taking on a new client?
- What the instruction is and if I am competent to carry out the works
- If the sufficient PII is in place to cover the instruction
- Conflict of interest checks
161
What is the RICS Statement Relating to Money Laundering?
RICS professional standard on Countering Bribery, Corruption, Money Laundering, Terroist Financing
162
Why have a Terms of Engagement?
Creates a contract with a client, covering scope of works, fees, assumptions, Complaints Handling Procedures.
163
What is PII? Why is it needed? What are the levels?
Professional Indemnity Insurance
It is insurance which covers the cost of compensating clients for loss or damage resulting from negligent services or advice provided by a business or an individual.
Depends on the firms turnover in the previous year:
£100,000 or less = £250,000
£100,001 - £200,000 = £500,000
£200,001 and above = £1,000,000
164
How did you handle your conflict of interest?
- informed parties of the conflict of interest and the risk associated
- Obtained informed consent in writing
- Put the appropriate measures in place to minimise the risks associated.
165
What is a Conflict of Interest?
Where someone is in a position to derive personal benefit from decisions or actions made in there own capacity.
166
When is it appropriate to use Informed Consent?
- Where the affected parties have been informed of the conflict and the risks associated
- Where it is in the best interest of all parties for me to proceed
- Where it is not illegal
167
When can Informed Consent only be given?
Where all parties have been informed of the conflict of interest and the risks associated, but it it still in the best interests of all to continue with the instruction.
168
What does the RICS ethical decision tree include?
It includes a stage-by-stage process to establish if a decision is in line with the rules of conduct.
169
How do you undertake a Risk Assessment?
- Establish hazards
- Establish risks
- Establish who could be harmed
- Establish who's responsibility it is
- Measures to manage this if possible
170
What are the principles of the Health and Safety Act 1974?
Ensuring the health, safety and wellbeing of employees at work, and protecting non-employees from health and safety risks arising from work activities
171
Tell me about 2nd edition of RICS Surveying Safely, What was the new guidance was contained in it?
sets out the principles for the management of health and safety for RICS-regulated firms and RICS members.
New guidance introduced the 'safe person' concept, which explains how it is each person is responsible for the safety of themselves, and others while at work.
172
What is CDM? After how many days until works are notifiable?
Construction Design and Management Regulations (2015).
30 days.
173
What accounts go into a business planning?
- Cash Flow Statement
- Balance Sheet
- Profit and loss
174
What is a Balance Sheet?
A financial statement which shows a companies assets and liabilities at a specific point in time.
175
What would a find in a business plan?
- Financial reports such as profit and loss, balance sheets, cash flow
- Goals and Targets
- An overview of the product or service offered
176
What do you understand about Money Laundering?
Money Laundering is Converting and investing illegally gained money into property.
The 3 stages are placement, layering, integration/extraction.
177
What is a client money account? What types are there and what are the obligations?
A client account is an account which holds clients money.
Discrete and general
- Can't be mixed with company money
- Account has to be named with the wording "client account" and the name of who's money is being held
- Has to be readily available to client at all times
- Has to be managed accordingly, such as not to go into arrears.
178
How does your company deal with AML?
- We have a AML policy
- We carry out AML checks
179
What is the RICS Client Money Protection Scheme?
The scheme provides protection, as a last resort, in instances where an RICS Regulated firm is unable to repay a client's money.
180
Do all properties need an EPC?
All properties need an EPC except for:
- Temporary buildings used for less than 2 years
- Industrial sites, workshops and non-residential agricultural buildings that don't use a lot of energy
- Buildings that are due to be demolished
181
What do you understand about your firms environmental plan?
My company adheres to a policy set out in ISO14001 - which is a set of standards put forward by the International Organization for Standardization
Best practise for reducing the environmental footprint.
182
Can you explain what the Red Book is and can you name some of the key sections ?
Red Book is a global framework of standardized valuation procedures and standards that are necessary for installing consistency, high standards and public trust in valuation.
Key Sections include:
- Introduction
- Ethics
- Valuation Technical and Performance standards
- Valuation Practise and Guidance Applications
183
What does VPS 1 relate to ?
Terms of engagement
184
Can you name 3 valuation approaches referred to in the Red Book ?
- Market (Comparable)
- Cost (Cost & Residual)
- Income (Investment)
185
You have undertaken some instructions for secured lending purposes, were there any special assumptions stipulated by the lender or that you were required to include in your report?
What special assumptions might be included in your advice ?
There were no special assumptions set out in the Cookstool Farm valuation - but I am aware that there are often special assumptions on selling in 'forced sale' situations.
186
You have carried out a valuation for investment purposes can you talk me through the process ?
Devoll Meco Valuation - Term & Reversion
Established a yield for open storage in the location
Based 10% on the term based on income figures provided
Based reversion by +1 % to reflect increased risk and based on rental values for open storage achieved in the area
187
How would you calculate a yield ?
(Annual Rental Income / Property Value) x 100
188
What legislation does trespass/ encroachment come under ?
Occupiers Liability Act 1957 and 1984
189
How would you calculate a crop loss claim for a client landowner affected by a number of electricity pylons in his field ?
- Establish a measurement of the area or areas that have been affected
- Establish a priced per acre for the subject crop
- times it together
190
What is the procedure in making a CPO as set out in the Land Acquisition Act 1981?
- Information gathering / land referencing / preliminary enquiries
- CPO preparation and submission
- Objection Period and Inquiry
- Decision
- Possession & Acquisition
- Compensation
191
What would be the typical Heads of Claim of a landowner in receipt of a CPO ?
Land Taken
Disturbance
Loss Payment
Severance and Injurious Affection
Fees
192
What is Injurious Affection ?
Injurious affection is the depreciation in value of the retained land as a result of the proposed construction on, and use of, the land acquired by the acquiring authority for the scheme.
193
Can you explain the Pointe Gourde Principle ?
No-scheme principle, where the underlying scheme is to be disregarded when assessing compensation.
194
On receiving a blight notice how would advise your client to proceed ?
- Advise they have 2 months to respond
- Need to check they have a valid interest (freehold or leasehold for at least 3 years).
- Need to check they have made reasonable efforts to sell the land and that it is blighted
195
How are surveyors fees assessed when acting in Compulsory Purchase cases?
Surveyors fees are to be fair and reasonable to reflect the work that has been carried out.
196
How would you advise your client to object to a CPO ?
- There is a 21 day window to object
- Grounds for objection have to be valid and can't just be for compensation as this can be dealt with separately
Objections are usually:
- Agree with purpose of scheme but would like minor amendments to minimise the impact on you
- Agree with purpose of scheme but feel that it should be located elsewhere
- May object to the scheme completely
197
Are you aware of any RICS guidance on undertaking physical inspection?
RICS surveying Safely
198
What risks might you consider prior to undertaking an inspection ?
- Livestock
- Flooding
- Condition of fences and gate posts
- The roof
- Asbestos
- Electrics / Utilities
199
Are you familiar with the Merrett v Baab case and why was this was important for surveyors?
2001 case which left an employee exposed to personal liability claims in respect of advice given, or work undertaken, on behalf of their employer.
Mr Babb carried out a valuation for a property purchase when working for the employer.
Because Mr Babb had gone out of business and no longer carried professional indemnity insurance when the claim was made, it was held he was personally liable.
200
Tell me about the equipment you would normally take on an inspection.
- PPE
- If measuring, a measuring wheel, a laser measure, a Trimble device
201
Are you aware of any invasive plant species and what legislation would be applicable ?
Generally outside of my area of expertise, I am aware of Japanese knotweed
The Wildlife & Countryside Act 1981
202
What would you consider to be the key elements in a building?
- Foundations
- Walls
- Roof
203
How would you test for dampness in a building?
I could use a Damp Meter
204
Can you explain what a lease is ?
A lease is an interest in land, and is transferable
205
Can you talk me through the requirements for a lease ?
- Lessee details
- Lessor details
- The term
- The consideration
- Access provisions
- Exclusive possession
- Lessee obligations
- Lessor obligations
206
How would you compensate a tenant for improvements at the end of a lease?
Compensation would reflect the increase in the residual value of the property due to the improvement.
Value of the property with the improvement, take off the value of the property without the improvement.
207
What are the main points of the Party Wall Act ?
- Legislated framework to prevent and resolve disputes in regards to party walls and boundary walls
- Party Wall notice can be served on a neighbouring land owner or building owner
- If building owner and adjacent owner can't agree on the notice, then a party wall award is granted
208
What is the difference between a lease and a licence?
A licence is a personal right to use land and is not transferable
A lease is an interest in land, and is transferable
209
If acting in a Rent Review what is the first thing you would look for before triggering the review ?
- Check lease to see what provisions are for triggering the review
- Check the lease to establish how the rent review will be valued.
210
When may tenancies not be protected by the L & T 1954 Act ?
- If contracted out of sections 24-28
211
Are you aware of any RICS guidance for Handling clients money ?
Can you explain some of the fundamental principles ?
RICS Client Money Handling (2019)
- Client money is to be kept separate to company money
- Client account must be in the name "client account" and the name of who's money is being handled
- Must be readily available to the client at all times
- Must be managed accordingly, such as to not be in arrears
212
What steps would you take if a tenant was unable to pay rent ?
- Go see him to establish the situation, and why he is unable to pay the rent
- Inform the client
- I could ask to see some accounts to understand the situation
- Establish the best method to proceed, such as a re-payment plan, or to terminate the agreement.
213
Can you talk me through how your business ensures data protection is in place and is kept in accordance with GDPR Regulations. Who would you report a data breach to and what are the potential financial penalties ?
- Password encrypted systems
- Locked files
- Clear desk policy
Reporting a breach - Report to my firms data compliance manager
214
What are the different methods of Rent Reviews?
- Open market rental value
- Rental Price Index
- Fixed rent increases
215
What are the current RICS guidelines for service charges ?
- RICS service charges in commercial property (2019)
- RICS Service charge residential management Code and additional advice to landlords, leaseholders and agents
216
What are the current MEES requirements for commercial property and what changes will be coming?
Minimum Energy Efficiency Standards
Minimum requirement is EPC E
To be a minimum of C by 2028.
217
When measuring what RICS standards and guidance are you governed by ?
RICS Code of Measuring Practise
RICS Property Measurement
218
What is IPMS ?
International Property Measurement Standards
219
Can you explain the main reason for property measurement and why accurate measurement is important ?
The measurement of a property can have an impact on it's valuation.
For example, inaccurate measurements will cause inaccuracies with building and associated construction costs.
220
What properties do IPMS apply to ?
IPMS is applicable to all properties independent of their use or occupation.
221
How does a disto work and how would you calibrate it ?
It works by placing the back of the disto against where you wish to measure from, and aiming the laser to where you wish to measure too.
I would calibrate it by taking a known distance, and using the disto to see if the measurement is the same.
222
Can you talk me through what you understand by GEA, GIA & NIA.
GEA - Gross External Area
- Measurement including the perimeter walls
- Town planning, Council Tax Valuations, Building cost estimates
GIA - Gross Internal Area
- Measurement excluding the perimeter walls
- Valuation (Towngate Farm), Estate Agency, Rating
NIA - Net Internal Area
- Measurement of the usable area of a property
- Shops and Offices
223
Updates to the Red Book?
- Implementation of Valuation Review recommendations
- Adaption to evolving practices and processes for issues including ESG and technological advancements
224
Why did you advise on a lower GDV?
I am aware that advising a lower GDV would indicate a lower value for the Right of Way. However:
- I was asked to identify any key differences, which this was
- I aim to act honestly and competently
- The building and associated construction costs were high too which lowered the residual value
225
How was the CPO schedule set out / formatted?
Set out in line with The Compulsory Purchase of Land (Prescribed Forms) (Ministers) Regulations 2004, which:
- Sets out the template for Table 1 and Table 2
- Sets out notes on the form for each section of the tables
226
What is a purchase notice?
A notice served by a landowner on the AA requiring them to purchase land where planning permission has been refused and the landowner claims the land is incapable of reasonable beneficial use.
227
How do yields work?
high risk = high yield = low prices
Low risk = low yield = high prices
228
What factors can effect a yield?
Risk -
- Quality of Tenant
- The market and demand
- The economy
- Quality of the property
229
How do you calculate a yield?
(Annual income / property value) x 100
230
What size were the proposed developments at Barmhouse Lane?
approx. 140 sq m each, approx 280 sq m together
231
Why did the client want a contract farming agreement instead of a lease?
Client wanted more level of control
232
You mention building costs were high in comparison to figures provided by BCIS, can you explain?
Yes - I can't remember the figures specifically, but I do remember the price per square meter used for construction costs was in excess of approximately 25-30% in comparison to the figures provided by the BCIS
They had also based the measurement on a larger size than what it should have been.
233
Do you think it was right to use the £65,000 as the basis for the value of the property in it's existing use? If so, why?
I do -
- I would have used the comparable method, and this would have been the perfect comparable, as it is the subject property and was sold 1 year from the valuation date
- This was the price paid for the land without the right of way, and the landowner was fully aware that they would have needed to secure a right of way over my clients land in order for any development to go ahead
234
Why did you use Stokes vs Cambridge? Are you aware of any other case law?
I am aware of other case law, such as Ozanne v. Hertfordshire and the golden key, but I felt Stokes v Cambridge was appropriate because -
- This is generally accepted as industry standard
- The physical right of way already exists, and there is no need for the construction of the physical right of way to be created here.
235
Where would using a Disto not work?
- If there is no boundary or wall to measure against
- If it is to bright
236
If you identified a defect when doing a NPG valuation, how would this affect it?
Depends on level of damage -
- Repairs to a roof we could provide an estimate for the repairs and deduct from the value
- Subsidence of a building / issues with foundations, outside my area of expertise and an external specialist would need to take this on.
237
Working on ZQ, if after the works a landowner informed you that the land is flooded, how would you deal with this?
How would you know the land was already wet if the weather was dry?
We could have damaged a drain, so
- Check pre-records to see condition of the land prior to the works
- If it is apparent that a drain has been damaged, inform the contractors to return to site and rectify the situation
If the land is wet, bull rushers often grow in wet area's
238
What needs to be signed for a tenant to accept that s.24-28 will be contracted out of an agreement?
Does the Tenant have to sign this?
A Health Warning Notice
The Tenant doesn't have to sign and accept this.
239
What is Alienation?
Refers to rights granted for assignment and subletting of a lease
240
What is a party conflict?
Where you are asked to represent both parties involved with a conflict, e.g. the company and the landowner.
241
Why was Meco land based on FRI terms with no deductions?
- There was associated temporary buildings such as cabins and we were informed were under FRI terms
242
What PPE did you require?
PPE set out in CDM regulations specific to the site
