Property

Assessments

What all school property managers should have at their fingertips.

This summary is by no means exhaustive, but will help you understand your property and its link to your operational success. It may also save you money when dealing with other business professionals. In particular, it will assist you whether you are considering a sale, taking on debt or facing a rent review.

What is needed and why

1. Land Registry documents (title deeds): available from the Land Registry website. Copies should be held by your solicitors. These documents define the physical land that you own or lease. It also details any rights of way, restrictive covenants or other restrictions on title which affect your property.
   
   
2. Scale floorplans: these are extremely useful even if you intend to continue in place – it allows any contractors to price works more accurately, plan extensions or they can be used as the basis for fire plans. Also useful as a marketing tool to show the layout to parents.
   
   For an intended rent review or valuation, they are essential for other operators, developers or consultants to be able to assess scope for the future, including alternative uses, extensions and so on. Specialist floor planning companies will quote for providing these plans in paper or electronic format.
   
   
3. Planning history and policy background: available from the local planning authority. This provides confirmation that your premises have consent for its existing use and also sets the context for when future extensions or changes of use are considered.
   
   Your file should include:
   
   • planning applications, consents and refusals; and
   • listed building consents, where applicable.
     
     
4. Trading information: required for the valuation of the school as a going concern or a sale of the business is considered. Usually provided on a confidential basis and in an increasing level of detail as discussions progress, it is essential that initial figures can stand up to the due diligence process instigated by a buyer.
   
   As a minimum, this should include:
   
   • audited accounts (three years ideally);
   • up-to-date management accounts for current year in profit and loss format;
   • pupil numbers and fee levels by year group; and
   • staff levels: number of staff, wage costs, length of service, pension liabilities (without breaking data protection legislation).

Gary Witham is an associate director for Savills. Gary can be contacted on 020 7409 9902.

Return to Property