Case Study – Level 1

Question 1

• What current challenges is Covid and/or Brexit bringing to your day to day?

Answer 1

• Meetings with people taking place over zoom or something similar.
• Inspections in PPE.
• Vendors and tenants to keep their distance or be out of the property.

Question 2

• Can you provide some typical examples of defects commonly associated with early 1900s residential buildings?

Answer 2

• Shallow foundations leading to bay movement at the front.
• Two storey additions at the rear pulling away
• Dampness for bridging DPC or blocked vents.
• Chimneys require repointin
• Flashing missing
• Roof sagging due to heavier tiles and no additional timber supports.

Question 3

• In this case study who is your client as you said your instructions were received from The Moving Portal?

Answer 3

• The client is the purchaser.

Question 4

• What is your conflicts of interest check process?

Answer 4

I check our database of clients’ name and also the property address to make sure we have not been involved with the property before.

Question 5

• How far away was the train line from the property? Is there anything you would look for during your inspection if a property is close to a railway line?

Answer 5

• The train line was reasonably close but not too close where it was very noisy.
• Japanese Knotweed is associated in and around train lines.

Question 6

• What is the least number of years remaining on a lease for a lender to accept a property as suitable security?

Answer 6

• Most lenders won’t lend on leases under 70 years.

Question 7

• If you were just carrying out a valuation what reasonable assumption could you make regarding the lease?

Answer 7

• That the lease length was 85 years or more.
• The Ground Rent was fixed at a reasonable amount and did not double every 10 years or so.
• The service charge was not too onerous.
• The lease was acceptable for lenders.

Question 8

• You said in 2.1.2 that externally there was a lack of maintenance to Trundleys Road. What condition ratings did you give the Main walls?

Answer 8

• I gave a condition rating of 3.

Question 9

• What name do you give to the brickwork design above the front door?

Answer 9

• Flemish Bond

Question 10

• What is the average life span of concrete tiles?

Answer 10

• Between 60 to 100 years depending on where the property is located and how well the roof is maintained.

Question 11

• Can you name 2 types of settlement? Explain the difference.

Answer 11

• Uniform – Where the foundation settles at a constant rate.
• Differential – Non – uniform movement of the sub soil. Basically, the soil settling at different rates.

Question 12

• What is the difference between subsidence and settlement?

Answer 12

• Settlement is generally found in newer properties. The property moves the soil due to its weight and load as the ground adjusts to take the load
• Subsidence is the downward movement of the ground beneath the structure. The ground moves away making the structure unstable. This is exacerbated with tree roots, leaking drains etc.

Question 13

• What DPC if any is likely to be in a house of this age?

Answer 13

• A Slate DPC.

Question 14

• What would the ceilings have originally consisted of?

Answer 14

• Lathe and plaster.

Question 15

• How do you calibrate your moisture meter?

Answer 15

I use the calibration tool to check to see if the damp meter registers between 18-18.2.

Question 16

• What is the minimum height of the DPC in relation to external ground levels?

Answer 16

• 150 mm above ground level.

Question 17

• What signs do you look for in relation to rising damp?

Answer 17

• High Ground Levels
• Bridging of the DPC.
• Leaking gutters and pipes.
• Potential drains/gullies nearby which could be overflowing or leaking.

Question 18

• How do you identify dry rot?

Answer 18

1. Fruiting bodies.
2. Mushing like appearance.
3. The dry rot cracks when you crush it.

Question 19

• What factors are required to enable the development of wet rot?

Answer 19

• High humidity levels.
• Lack of ventilation.
• Wet/damp conditions.

Question 20

• What is the name of the RICS publication on comparable valuation?

Answer 20

Guidance Note: Comparable Evidence in real estate valuation, 1^st Edition 2019.

Question 21

• Talk me through the main points of Guidance Note: Comparable Evidence in real estate valuation, 1st Edition 2019?

1. General principles.
2. The three market approaches.
3. Sources of comparable evidence.
4. Hierarchy of evidence.
5. Recording comparable evidence.
6. Analysis of comparabel evidence.

Answer 21

1. General Principles of a comparable evidence.

• Several comprehensive comparables.
• Very similar or identical if possible.
• Recent transactions.
• Arm’s length transaction.
• Verifiable.

1. The three approaches.

• Market Approach – Residential, Rural and Commercial real estate.
• Income Approach – Investment Method and Profits Method.
• Cost Approach – Depreciated Replacement Cost.

1. Sources of comparable evidence.

• Direct Market Evidence.
• Publicly available market evidence .
• Published Databases.
• Asking Prices.
• Historic Evidence.
• Indices.
• Automated valuation models.
• Must be verifiable.

1. Hierarchy of evidence.

• Completed transactions of near identical properties.
• Completed transactions of similar properties.
• Properties that are SSTC.
• Asking Prices.
• General Market Data – Historic Evidence
• Other sources – Interest rates, stock market movements.

1. Recording comparable evidence.

• Evidence must be recorded clearly.
• Red Book Global Standards states a proper record must be kept.
• Evidence of the transactions, sales particulars, correspondence, and discussions are recorded clearly.

1. Analysis of comparable evidence

• Establish the common measurement.
• Make adjustments as to location, building specification, condition, size, tenure, lease terms, date of transaction, energy efficiency and adaptability.

Question 22

• Can you explain what a French drain is and how it works?

Answer 22

• A French drain is a trench, filled with aggregate,
• It directs subsoil and water away from your property in areas that are prone to flooding or surface water pooling.

Question 23

• What is the RICS guidance relating to asbestos?

Answer 23

• The RICS Practice Statement is no longer in use due to the HSE document on the Control of Asbestos Regulations 2012. Approved Code of Practice and guidance

Question 24

• What type of heating engineer would advise on chimney flues and log burners etc?

Answer 24

• A HETAS engineer.