Case Study

Question 1

What was the guide and reserve price for the auction?

Answer 1

Guide price: £385,000
Reserve price: £400,000

Question 2

What is the EPC rating for Park Road?

Answer 2

E-120

Question 3

What was the use class?

Answer 3

F1

Question 4

What was the structure of the building? (3)

Answer 4

• Concrete block construction on a strip foundation
• Corrugated cement roof sheeting over a trussed roof
• Gable end wall with parapet on each side, creating a weak point as exposed to the weather

Question 5

What permitted development or alternative uses are permitted for Class F1 uses?

Answer 5

• No permitted development from Class F1 to other use classes
• However, no planning permission is needed to move from one F1 use to another
• Others within F1 include museums, a public library, law court, religious instruction

Question 6

What class does F1 fall within?

Answer 6

• Use class F, known as the Forgotten Class
• Split into F1: Learning and non-residential institutions, and;
• F2: Local community

Question 7

What age would you suggest the property is and how can you tell this?

Answer 7

• It was built at some point after 1954
• I could tell from going on the Richmond planning portal

Question 8

Why did you measure on a GIA basis? (2)

Answer 8

• Due to all of the comparable evidence also being measured on a GIA basis
• Also as not an office or residential unit, RICS Property Measurement, 2018 doesn’t apply

Question 9

As the site was a potential development site, what future uses did you consider likely or feasible for the site? (3)

Answer 9

Use Class E: e.g. creche or nursery etc.
Use Class F2: e.g. local community hall
Use Class C: e.g. residential dwellings

Question 10

What did the local plan have the areas identified as, or any restrictions you considered concerning? (2)

Answer 10

• Although not within a conservation area, it is on the boundary of Park Road, Teddington Conservation area, which may impact planning officer’s consideration or any future development
• Several trees among the southern boundary, however, there were no TPOs established

Question 11

Who recommended the marketing strategy, you or the valuer? (2)

Answer 11

• The valuer recommended a marketing strategy, however, with multiple options depending on the outcome of certain bits of research. For example, whether there are any TPOs.
• Therefore, I did the research and recommended the final advice based on the outcomes

Question 12

What was the size of the sale board?

Answer 12

It was a flat board of 1.2m by 0.9m so planning permission wasn’t needed

Question 13

Where can you find guidance for risk assessments?

Answer 13

Health & Safety at Work 1974

Question 14

What is the difference between a S119 valuation and a red book valuation? (3)

Answer 14

• An S119 valuation report recommends the marketing/method of sale steps to achieve the best value
• Needs to report if there are any repairs or alterations needed before disposal
• The second S119 report must be undertaken after an offer has been accepted and must report on whether it has been adequately advertised

Question 15

Where would you find guidance on valuations for charitable organisations?

Answer 15

VPGA 8 of the UK National Supplement

Question 16

What is the use of the purchaser of the auction?

Answer 16

Investment company into run-down residential opportunities

Question 17

What was the size of the site and the building?

Answer 17

The site was about 315 sqm
The building was about 160 sqm
Just over 50% site cover

Question 18

Have there been any recent amendments to legislation surrounding S119 valuations? (2)

Answer 18

• Charities Act 2022
• Gives charities greater flexibility when disposal of charity land by being able to seek advice from a greater range of professional advisors

Question 19

What was included in a letter inviting offers before a bid deadline? (6)

Answer 19

• Required date and time of receipt of the written offer
• Name and address of the applicant’s solicitor
• Confirmation of finance arrangements
• Details of any conditions attached to the offer
• Confirmation that offers of a variable nature will not be considered (e.g. escalator bid)
• The vendor reserves the right not to accept the highest or any, offer made

Question 20

What should a prospective purchaser include within their offer letter? (6)

Answer 20

• Price
• Funding
• Target timeline
• Subject to
• Purchaser’s details
• Solicitor’s details

Question 21

What did you include within your recommendation to the client concerning the offers? (2)

Answer 21

• Advice on what the timescales could likely be. E.g. if planning permission or needing to sell their house first
• Advice on which offers would provide the most certainty

Question 22

What was included within the Heads of Terms for the Park Road sale? (10)

Answer 22

• Subject to Contract
• Vendor’s details, including solicitor’s and agent’s details
• Purchaser’s details, including solicitor’s and agent’s details
• Property address
• Price
• Target timeline
• Deposit
• VAT
• AML
• Signed

Question 23

Why did the purchaser pull out?

Answer 23

• Change in their company’s business strategy as a result of rising costs
• They had bought with the assumption that it was use class E, therefore, they changed their offer to subject to planning at a late stage and were unable to get planning permission before the installed long stop date

Question 24

What are the requirements to include within your situation plan on the particulars?

Answer 24

• North point
• Scale bar
• Scale

Question 25

Pros and cons of asbestos cement corrugated sheet roof?

Answer 25

Pros: - Highly durable/weatherproof - Cheap Cons: - Can get excessive moss growth, which could start eating into the roof - Difficult to repair - Vulnerable material when on it

Question 26

What did F1 use class used to be?

Answer 26

D1

Question 27

What is the definition of 'best value'?

Answer 27

- Proving that all necessary marketing steps have been taken to get the best price possible - Choosing the most appropriate offer based on the situation

Question 28

Local area inspection (4)

Answer 28

- 250m to the train station - Other estate agents boards - Residential area, however, still near the high street - Substantial next-door trees

Question 29

Internal inspection (8)

Answer 29

- Carpet laid on solid concrete floor - Suspended ceiling - Gas boiler - natural gas central heating - Non LED lights - Double-glazed windows - Mezzanine office space to rear on raised floor above storage space - Kitchenette - Accessible WCs

Question 30

External Inspection (6)

Answer 30

- Concrete block construction on a strip foundation - Corrugated cement roof sheeting over a trussed roof - Gable end wall with parapet on each side, creating a weak point as exposed to the weather - No obvious structural damage or defects - Easement through the private access road - Sheds to the rear of the plot