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Flashcards in Purchase And Sale Deck (11)
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1

What yields are high street retail?

West End - 2.25%
Prime - 4.00%
Regional - 4.5%
Good Secondary - 6.00%
Secondary - 10.00%

2

What yields are shopping centres?

Prime - 4.5%
Secondary - 9.5%

3

What yields are warehouses

Prime - 4.25%
Secondary - 5.00%

4

What yields are offices?

City - 4.25%
West End - 3.5%
Regional cities - 4.75%
Secondary - 5.00%

5

What is the LIBOR rate?

London Interbank offer rate

2.77

6

What are the current business rates?

Small (-£51k) - 0.48
Normal - 0.493

City - extra 0.005
Cross rail levy (+£70k) - 0.02

7

When would you advise a client to use informal tender as opposed to formal tender?

Ultimately it’s always the clients decision however on the ec3 sale I advised my client to use informal tender as I did not feel there would be one stand out bid. So I felt a competitive bidding process would be effective.

1 George yard - main comp

8

What did the building sell for?

£18m
4.32%
6.8%
£1,298
835k

9

What must charities do when selling a building?

Section 119 of the Charities Act Valuation

I had to advise them whether it is in their best interest to sell

10

What are the different acquisition costs you have come across?

Buying shares in a UK company
1.8% - 2.3%

Normal - 5.8-6.8%


Charities have to add on 1% for red book valuation

11

What is SDLT?

Stamp Duty Land Tax

< 150,000 = 0%
150,001 - 250,000 = 2%
250,001 > = 5%