Table Of ContentAPC Casebook:
Case Work III ustrations for
General Practice Candidates
Austen Imber
r'i~ Books
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ISBN: 978-0-7282-0567-3
Typeset by Amy Boyle, Rochester, Kent
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Contents
Foreword. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
Chapter 1 Investment Valuation – Lending Purposes. . . . . . . . . . . . . . . . . . . . 1
Chapter 2 Specialist/Profits Valuation – Healthcare. . . . . . . . . . . . . . . . . . . . 11
Chapter 3 Rating Appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Chapter 4 Rent Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Chapter 5 Rent Review – Further Illustrations. . . . . . . . . . . . . . . . . . . . . . . . . 43
Chapter 6 Lease Renewal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Chapter 7 Tenant’s Occupational and Business Issues . . . . . . . . . . . . . . . . . . 59
Chapter 8 Landlord and Tenant, Surrender, Improvements, Public
Sector Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Chapter 9 Retail Assignment on Behalf of Landlord Investor . . . . . . . . . . . . 79
Chapter 10 Investment Acquisition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Chapter 11 Insolvency and Sale of Property . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Chapter 12 Telecoms Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Chapter 13 Marketing – Further Issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Chapter 14 Office Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Chapter 15 Planning Appraisal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Chapter 16 Compulsory Purchase and Business Valuation . . . . . . . . . . . . . . 153
Chapter 17 Compulsory Purchase and Planning Issues . . . . . . . . . . . . . . . . . 163
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
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Foreword
Understanding how the property industry works. That is the purpose of the
Assessment of Professional Competence. APCCasebook: Case Work Illustrations for
General Practice Candidates provides students with illuminating real-life examples
of what the surveyor really needs to understand in order to progress.
These worked-through cases of lettings, rent reviews, lease renewals and the
like are not only useful in themselves: they also help provide the student with a
deeper understanding of the links between the subjects. It is these links – the effect
of a letting on capital value for instance – that help the student appreciate the
client’s needs.
Estates Gazettehope you find this companion publication to How to Pass the APC
a valuable volume – not only in helping with your APC, but also as a window into
the way the sector really works.
Peter Bill
Editor Estates Gazette
June 2004
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Preface
For graduates to be successful with the final assessment stage of the RICS
Assessment of Professional Competence (APC), they require an applied
understanding of the work undertaken in practice. This is gained by combining
surveying experience with surrounding study, and being alert to the day-to-day
issues arising in practice, and to the solutions that can be provided.
The APC is not about revising from text books, and an interview with three
experienced surveyors is very different from the relative ease at which university
exams can be passed.
Estates Gazette’s first book on the APC, How to Pass the APC: Essential Advice for
General Practice Surveyors, concentrated on the APC itself, and provided guidance
on each stage of the process. Akey point repeated on several occasions throughout
the book was that an overall 65% pass rate (and approximately 50% first time pass
rate) for general practice surveyors partly reflects the fact that many candidates sit
the APC interview despite lacking the required experience and knowledge –
including being unaware of some issues, and what a surveyor really needs to know.
APC Casebook: Case Work Illustrations for General Practice Candidates puts many
areas of graduates’ day-to-day case work into practice, and is an accompaniment
to the whole of the structured training period – as well as being particularly
helpful for final assessment.
Many of the illustrations are based on APC candidates’ critical analysis, which
is submitted as part of final assessment. The reports have been amended slightly
in order to provide more detail in some areas, and to ensure that they do not
simply represent template examples which can be mirrored by other candidates.
This includes variations to RICS requirements, such as headings and word count
(and it will therefore be important that candidates establish RICS requirements).
The structure and essence of the critical analysis is, nevertheless, broadly
maintained, and the reports show the importance of ‘analysis’, ‘evaluation’, etc,
instead of the descriptive narrative that some candidates incorrectly present at
final assessment. Some reports have however been amended slightly to be more
factual, and in some cases this involves less extensive sections on critical
appraisal/reflective analysis. Some elements of individual reports are also
excluded because the points have been made in other reports. The first Estates
Gazette Books’ APC publication, How to Pass the APC: Essential Advice for General
Practice Surveyors, provides guidance on how to prepare a good quality critical
analysis, and also a further example of a critical analysis.
Within the various contributions of candidates’ critical analysis, names and
locations are disguised, and confidentiality sometimes further preserved through
alteration of valuation figures and other aspects. Illustrations of interview
questions are provided, although these are inevitably selective – and a wider
range of questions could be received at the APC interview.
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viii APCCasebook
General practice graduates are typically involved in valuation, landlord and
tenant, estate management, agency, rating and planning and development work.
Valuation includes investment valuation, development valuation (which overlaps
with development appraisal), rental valuation and an understanding of the Red
Book. Some candidates may also undertake specialist valuations, such as in
connection with licensed and leisure uses, or other properties whose value is
dependent on business profitability. Landlord and tenant is concerned primarily
with rent review and lease renewal, and also involves a thorough overall
understanding of the landlord and tenant relationship, including ongoing property
management issues. Estate management includes sub-lettings, assignments,
surrenders, rent collection, dilapidations, dealing with other breaches of covenant,
administering service charges, insurance, buildings/facilities management and
other areas such as DDA compliance, managing asbestos, procuring works and
ensuring compliance with health and safety legislation. Agency spans lettings on
behalf of landlords and/or leasehold acquisitions on behalf of tenants of retail,
industrial and office property, and any other specialist interests in which
candidates may be involved. Sales and purchases could similarly cover a range of
property types, and some candidates will be particularly involved in the
investment and/or development markets. Planning and development includes
commercial schemes and residential developments, and may also incorporate
regeneration issues. Rating is another area in which candidates are often involved,
and some candidates also gain experience in telecoms and insolvency work. Many
of the above areas of work are reflected in the 17 chapters of APC Casebook.
One of many important aspects of APC candidates’ training period is making
the links between subjects, and understanding how the property industry works.
Examples include the effect of lettings, rent review and lease renewal settlements
on rental and capital value, and how lease terms can either help or hinder the
ongoing estate management of a property.
Another important aspect of surveyors’ work is understanding a particular
client’s objectives, and ensuring that property advice best fits their circumstances.
There will be different objectives, for example, between a public sector property
owner such as a local authority or utility, a corporate occupier such as a national
retailer, and a private investment company or development company. Again, APC
Casebookreflects such issues.
As with How to Pass the APC: Essential Advice for General Practice Surveyors,
particular acknowledgment is due the following employers in view of their
support for training initiatives for graduates other than their own employees.
Advantage West Midlands, the regional development agency for the West
Midlands, and surveyors Honor Boyd, Kitt Walker and Karen Yeomans.
GVA Grimley, international property advisers, and training and development
manager Scott Kind.
Advantage West Midlands and GVAGrimley also contribute to Estates Gazette’s
‘Mainly for Students’ series.
Input into APC Casebook has been provided by a number of former APC
candidates. Honor Boyd and Kitt Walker are both Special Projects Managers with
Advantage West Midlands. GVA Grimley’s contributors are Piers Cartwright-
Taylor, Rachael Jones, Sarah Kenney, Naomi Linnie, Kieran McLaughlin, Rupert
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Preface ix
Mitchell, Roland Shaw and Kate Terriere. Jones Lang Lasalle’s contributors are
Guy Bransby and Rosie Young, and contributions are also made by Shrav Khera
and Ruth Walsh. An APC event run by Birmingham Property Services is featured,
and thanks here are due to BPS training manager Jacky Gutteridge and senior
surveyor John Gaunt.
Thanks are due to Midlands Property Training Centre for its co-ordination of
material, and ongoing help to general practice graduates as an independent
facilitator of training support.
Also acknowledged is the support of Peter Bill, Estates Gazetteeditor, and Alison
Richards, Estates Gazette Books Commissioning Editor, plus all those involved in
the process – including Rebecca Chakraborty of Estates Gazette Books, and Adam
Tinworth and Phil Brown regarding coverage of the APC in Estates Gazette’s
‘Mainly for Students’ series. Essential support in production has been provided by
Audrey Andersson and Amy Boyle.
Austen Imber
May 2004
