Due Diligence

When acquiring a property interest there is an intense period when a large amount of information needs to be acquired and processed in a limited time to evaluate the value, identify any issues and mitigate any risks associated with them prior to exchange. ​

 

With the wealth of experience gained from transacting properties we are able to provide resource and systems to ensure that every management aspect of a potential property purchase has been considered.  We will provide to you a concise report confirming these results together with any recommended actions required. ​

 

Due diligence services include the following: ​

 

Lease Verification

• Cross-reference service charge expenditure with lease terms to confirm ability to recover

• Check tenant invoices to confirm amounts charged and identity are correct ​

 

Service Charge 

• Verify service charge budget against contracts which are in place

• Check apportionment of costs is correct, complies with the lease terms and in line with RICS requirements

• Consider any transferring contacts and advise of any onerous terms and implications

• Review last 3 years expenditure and highlight any discrepancies

• Review spend to date and provide likely year-end outcome

• Advise on any implications with regard to caps, void units or those with limited recovery ​

 

Utilities

• Check supply contacts, review recent expenditure and advise on recovery ​

 

Environmental

• Review EPC certificates for both the buildings and the lettable units

• Prepare summary to highlight liabilities linked to certificate expiries, breaks or lease end dates

• Advise on Health & Safety risk assessments, the certificates required and review documents

• Check Environmental Notifications ( i.e. Site of Scientific Interest, Protected Species, Invasive weeds etc) and advise of any management implications

 

Structure & Services

• Review structural and M&E surveys which have been undertaken

• Clarify liabilities for any reported defects and recommended course of action to resolve.

• Provide from reports planned preventative maintenance projections for next 5 years

• Make recommendations such as phasing, sinking or reserve funds to meet critical dates, comply with caps etc. ​

 

Insurance

• Check lease terms in relation to the level of cover and loss of rent required.

• Provide recommendations with regard to apportionment and recovery of premiums. ​

 

OPTIONAL SERVICES ​

 

Further services can be provided as required to assist in the setting up and mobilising of properties as follows: ​

 

• Full lease read and completion of summary and/or data sheets as required

• Preparation of tenancy schedule and stacker plans to client's requirements

• Review any tenant's handbook, portal or regulations and make recommendations

• Management review to provide advice and recommendations on any changes which could be considered to improve the property