EXECUTIVE SUMMARY. Bzar Groat Market Newcastle Upon Tyne. Date of inspection:

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1 EXECUTIVE SUMMARY Bzar Groat Market Newcastle Upon Tyne On behalf of: Client Name Date of inspection: Reference: /CDL

2 CONTENTS Page No EXECUTIVE SUMMARY 1 APPENDICES APPENDIX 1 PHOTOGRAPHIC SUMMARY

3 EXECUTIVE SUMMARY DATE OF SURVEY: CLIENT ADDRESS: PROPERTY ADDRESS: Bzar Groat Market Newcastle upon Tyne PROPERTY DESCRIPTION The property is a four storey Edwardian property of traditional construction with load bearing masonry walls, suspended timber floors throughout. Accommodation is provided over ground, first and second floors with full access into the third floor roof space and at basement level. The building is surmounted with a mansard style pitched roof to the front elevation and pitched roof running perpendicular to this at the rear. For reference purposes directions in this report are given as if facing the main entrance on the Groat Market which is the east elevation. ACQUISITION SUITABILITY Our various investigations have revealed major defects which are predominantly caused by water ingress through the roof, resulting in collapsed ceilings and damage to floor and wall finishes. There are other numerous defects which are generally due to a lack of maintenance and there are substandard services installations. Aside from the repairs required, the building is structurally sound with no signs of settlement or other major defects, but repairs are required urgently to prevent further and possible structural deterioration. Your attention is drawn to an outbreak of dry rot found at basement level which in turn is affecting the adjoining premises and this should be addressed immediately. Given the extent and nature of the defect, particularly to the roof, we feel that a prospective purchaser is likely to require these works undertaking or have them reflected in the value of the property.. PRINCIPAL SURVEY FINDINGS There are a number of defects present to the external fabric of the building, which will require maintenance in the short term to prevent further deterioration. In detail we will comment as follows: EXTERIOR Elevations The front elevation was found to be in extremely poor condition as leaking water from the parapet gutters at high level is causing debonding and degradation of the rendered mouldings at high level. Extensive repairs to the render are now required and in addition the render is also extensively damaged at low level due to impact damage. This requires repair to prevent water ingress and accelerated deterioration. Upon completion of appropriate render repairs, the front elevation requires decorating in its entirety. All the windows are of original specification and are a combination of timber casement and metal Crittal windows, all of which are single glazed. The windows have been neglected over a substantial period of time and require overhauling where possible, replacement and redecorating. A lack of pigeon netting has resulted in a build up of pigeon guano over a number of years which now presents a substantial risk to Health & Safety, particularly as a slip hazard to the fire escape steps, together with the risk of transfer of disease. Roofs The roof is in poor condition and despite ongoing patch repairs a number of slates are broken and missing

4 allowing water ingress. We are led to believe that most of the leaks, which have caused the collapse of ceilings at all levels, have now been remedied, however, our survey revealed signs of ongoing water ingress to a number of areas. Overall the roof is near the end of its useful life and would recommend that the roof is stripped and recovered. The roof light above the stair well is in poor condition and we would recommend that this be rebuilt or removed when the roof is overhauled. INTERIOR The property is fully bar fitted at ground and basement levels together with a beer cellar and there is WC accommodation at first floor level with storage on the upper floors. The upper floors are accessed via a large original timber staircase but the entrance to the basement is separate from the main building. The basement is independent from the main building with access off the Groat Market and was previously used as a Snooker Hall which has been vacant for several years. The bar is fitted out to a good standard however, has suffered from mould due to being unoccupied for such a long period of time. Water ingress from the upper floors has also caused deterioration of the carpet finishes and brought down the ceiling within the WC s. Works are now required to prevent further deterioration and the ceilings need reinstating. The Male WC is in extremely poor condition extensive dry rot was noted throughout which has now passed through the floor and into the common area of the adjoining office block. This requires immediate attention to prevent accelerated deterioration through both the demised property and the adjoining owner s property. For the basement to be brought back into use, both WC s will require refurbishment in their entirety. Drainage from the whole of the building passes beneath the cellar area of the basement accommodation which blocks periodically every few months. We would recommend a camera (CCTV) survey of the drainage system to ascertain the condition and extent of repairs required. Due to the frequent floods that have occurred, foul water and flood damage is present throughout the ground floor in the lobby, cellar and bar areas. The manhole has also been substantially damaged due to frequent lifting to access the blocked sewer and now requires reforming and all areas cleansed. The first floor generally appears to be in fair condition although would benefit from redecoration, particularly where the ceiling has been repaired. The upper floors are accessed via an original timber staircase and this is the only route for accessing the first floor WC s in the public domain. The staircase is extensively worn with only nosings to the upper treads which are extremely loose and deflected and should be replaced. The common areas within the public domain have suffered from heavy impact damage and require extensive repairs. The Male WC is in extremely poor condition with missing toilet seat covers and burn marks to the vinyl floor covering and plastic sinks. Consideration should be given to overhauling the WC s. The front of the first floor has been converted to form a beer cellar and the windows have been blocked up to the front elevation. If the building is listed, approval should have been sought for this work. The beer cellar is oversized and there are a number of redundant services which are no longer required. The second and third floors are used for storage accommodation only and pigeon contamination together with dead pigeon carcases and other debris was noted throughout. The ceilings have partially collapsed due to ongoing water ingress and these now require extensive repair. The floors are in a particularly poor condition, particularly the second floor where floorboards have been taken up to install lighting, cables and fire alarm cables, and they have not been reinstated. Reinstatement of the floorboards throughout the entire second floor and parts of the third floor are now required on the grounds of Health & Safety. Extensive water ingress to the roof timbers were noted and the onset of dry rot is now apparent. We would recommend a specialist inspection is undertaken and it is likely that repairs and treatment of the timber is required. There are various service installations throughout, the original installations remain together with new installations which have been subsequently installed. Exposed wires and three phase supplies were noted to the upper floors and we were unable to identify whether these were live. An immediate test is required to ascertain whether the installations are safe and then they should be rationalised by stripping out all the redundant elements and bringing the system up to current standards. The heating installation appears to be in good condition and recently installed with boiler being in good working order at the time of our inspection. A gas safety record should be available on site and a test carried out if not.

5 SUMMARY OF DEFECTS EXTERIOR Front Elevation 1. Undertake isolated patch repairs of render including rebuilding moulding to cornice PV work at high level and repairing cracked and impact damaged render at low level. 2. Redecorate masonry elements of front elevation Redecorate and overhaul windows Reline parapet gutter to front elevation Repair leaking overflow to front elevation at low level. 100 Rear Elevation 6. Provide pigeon netting to prevent access into rear yard area Remove pigeon guano from rear of fire escapes and air conditioning units Decorate windows and patch repairs Decorate soil and rainwater pipes Left Hand Elevation 10. Remove pigeon guano from rear of fire escapes and air conditioning units and 1800 cleanse. 11. Decorate windows and overhaul as required Decorate soil and rainwater pipes and overhaul as required Roof 13. Strip up existing slate roof coverings, treat all internal timbers to prevent dry rot, re-felt roof and renew roof coverings. 14. Overhaul roof lights Clear out all gutters and redecorate Internal Light Well 16. Redecorate masonry elevations Remove vegetation from rainwater goods and overhaul Overhaul and redecorate windows and repair as required INTERIOR Ground Floor 20. Repair water damaged ceiling and redecorate Provide wheelchair access Provide disabled WC Rear Fire Escape Within Adjoining Landlord s Office Demise 23. Inspect and remedy dry rot from Mr Q s (basement level). PV Provide illuminated fire exit signage and emergency lighting First Floor 25. Overhaul WC s making good leaking pipes, cigarette damaged sinks and floor 3000 coverings and replacing WC lids. Redecorate. 26. Repair impact damaged walls throughout the common areas. Redecorate. 1500

6 Second Floor 27. Undertake patch plaster repairs and reinstate ceilings throughout all rooms to second 6000 floor. 28. Decorate throughout Rationalise all services terminated redundant items, testing bare wires to ensure that PV 3500 they are no longer live. 30. Make good lifted floorboards throughout and empty waste and debris Decorate all windows Repair cracked glazing Provide fire escape into adjoining Landlord s Office Area with panic bar to existing fire doors. 300 Third Floor 34. Overhaul and redecorate all windows Replace damaged glazing throughout, make good apertures due to removed fireplaces 750 from chimney breasts. 36. Remove rubbish and debris Re-plaster and reinstate collapsed ceilings throughout Provide panic bar to fire escape into adjoining Landlord s Office Demise Re-fix loose and missing floorboards Test, overhaul and rationalise services as required Basement (Mr Q s) 41. Reinstate ceiling where destructive investigations have been undertaken to ascertain 800 nature of structure. 42. Undertake CCTV survey to ensure that reoccurring blocked drain is free flowing. PV Rebuild flooring around manhole to sewer Disinfect and clean out flooring through bar area and cellar where contaminated with 200 raw sewage. 45. Replace carpets throughout due to water ingress from ground floor Clean down and redecorate all surfaces throughout Remedy water ingress into Female WC s, make good ceiling as required Refurbish Female WC s in its entirety Treat and eliminate dry rot to male WC. PV Refurbish Male WC in its entirety GENERAL 51. Scaffolding Preliminaries. 10,000 Total 156, NB: The above figures do not include Statutory or Professional Fees and are exclusive of VAT. No contractors preliminaries or overheads and profit have been included. ASSET MANAGEMENT CONSIDERATIONS FIRE SAFETY There are no major fire safety concerns although we would recommend that the rear fire escapes be cleaned down and all pigeon waste be removed and protected to prevent an ongoing problem. The building benefits from an automated fire detection system which complies to BS 5839 Part 2 of the 1989 regulations, however we were unable to identify whether the basement is included as a separate zone and you should ensure that this is the case. The rear fire escape lets into the adjoining property and as such is under the control of a third party. This area however does require upgrading to benefit from illuminated fire direction signage and emergency

7 lighting for the benefit of the pub You should be aware that from 1 st October 2006, Fire Safety Law changed. A fire risk assessment replaced the old Fire Certificate as the principal fire document required by businesses. Under the 2006 Fire Order, all Employers and Landlords, responsible for business premises, must carry out a Fire Risk Assessment and if you employ more than five people it must be a written document that can be produced on demand. You should, therefore, carefully consider your duties. HEALTH & SAFETY As previously mentioned, there are an ongoing problems with pigeons guano to both the rear fire escapes and entering the building at the upper levels. Whilst on the whole the majority of pigeon carcasses and debris have been removed, areas still require decontamination and we would recommend that this be done as a matter of urgency. Also as previously mentioned, within the basement where the sewers have overflowed decontamination is required of the area surrounding the manhole and again this should be carried out immediately. DILAPIDATIONS We understand that you are looking to acquire the Leasehold interest in this building however we have not had sight of any Title Deeds, Leases or any current Tenancy Agreements with the current occupier. We have assumed that you are acquiring the building on a fully repairing and insuring basis and you should carefully consider the extent of the defects found as you will have an onerous repairing obligation if these matters are not addressed. Clearly we cannot comment on any items of disrepair that may accrue in the future but in its current condition you will be clearly liable for the repairs as mentioned in this Report, and you should give careful consideration to the extent of these. DISABILITY DISCRIMINATION ACT There are no facilities for disabled people and you should be aware that you are required to comply with the Disability Discrimination Act. We would recommend that a full disabled toilet complying to Part M of the Building Regulations be installed. It is also necessary to provide access to the basement and ground floors and this will require a lift or similar. Failure to comply with the Disability Discrimination Act 1998 may result in action being taken by potential employees or a member of the public and you should carefully consider your duties as an employer. You should be aware that failure to comply with the Disability Discrimination Act 2005 may result in action being taken by potential employees or members of the public and we would recommend that you carefully consider this when planning your shop fit. ASBESTOS CONTAINING MATERIALS We understand that a report has been commissioned into whether asbestos containing materials are within the building. You should be aware that under the Control of Asbestos at Work Regulations you are required to undertake a detailed investigation of the building and assess whether there are any materials which require removal or monitoring within the building. You should ensure that this has been undertaken and that it is available for the reference of building users. You should be aware that under the Control of Asbestos Regulations 2006 you are required to undertake an investigation of the building to assess whether there are any materials which require removal or monitoring. We would strongly recommend that you undertake a full survey with appropriate sampling and recommendations.

8 ENERGY PERFORMANCE We have not undertaken a detailed review of the energy performance of the property, however, generally the property appears to be to an unsatisfactory performance standard. Certain improvements can be readily made including upgrading insulation and lighting provisions. Under the EU Energy Performance of Buildings Directive, Landlords and Property Managers are responsible for the procurement of the certificates, which subject to no major alterations to the property will have a life of ten years. We have not undertaken a detailed review of the energy performance of the property, however, generally the property appears to be to an unsatisfactory performance standard. Certain improvements can be readily made including upgrading insulation and lighting provisions. NON-DOMESTIC RATES LIABILITY Under the Government s reforms to empty property relief available on Business Rates, from the 1 st April 2008, most property that has been empty for more than three months or, in the case of industrial property for more than six months will no longer receive relief from the Business Rates. After the initial three or six month rate-free period expires, empty properties will be liable for 100% of the basic occupied rate unless they qualify for one of the following: 1. The new zero rate provided by the Rating (Empty Properties) Act An exemption from Business Rates under the National Non-Domestic Rate (Unoccupied Property) Regulations. 3. Exemption from the Business Property Ratings List due to the incapacity of beneficial occupation. There are a number of further exemptions available for unoccupied properties and we would recommend early contact is made with the local billing authority in order to fully assess your liability. RECOMMENDATIONS FOR FURTHER TESTING Asbestos Concrete defects (HAC, Chlorides etc) Phase 1 Geo-Environmental Audit Landfill gas testing Others: YES/NO NO NO NO NO NO RESULTS OBTAINED ITEMS FOR YOUR SOLICITORS Obtain full details of repairing obligations and details of Lease terms. Obtain copy of asbestos audit from Landlord. Obtain confirmation that all statutory approvals are in hand for the structural works and extensions undertaken. Obtain copies of Entertainment and Public House Licences. Obtain copy of Fire Certificate whereupon we can provide further comment as required. Fully determine extent of demise including boundaries, associated boundary walls and any repairing obligations thereon.

9 EXTENT OF SURVEY AND LIMITATIONS This report is based on a visual examination of the building, and covers all parts of the building which were normally and safely accessible without the use of ladders. Parts of the structure were not opened up for further investigation works. Where we feel further investigation is merited, reference has been made in the penultimate section of the report. Tests were not carried out on the mechanical or electrical services, including heating, water and drainage installations. We did not lift fitted carpets, nor disturb any part of the fabric or fittings which were fixed or would have caused damage, and we are therefore unable to report that those parts of the building which were not visible are free from defects. This report is for your sole use, and consequently no responsibility whatsoever is undertaken or accepted to any third party for the whole or any part of its contents.

10 APPENDIX 1 PHOTOGRAPHIC SUMMARY

11 Plate 1 Overview of damaged moulding work beneath cornice at high level on front elevation. Plate 2 General overview of main entrance to Bzar and Mr Q s.

12 Plate 3 General overview of left hand elevation to rear of property showing blocked gutters, soil pipes and soiled fire escape. Poor decoration to window and cracked glazing.

13 Plate 4 Typical view of roof showing damaged tiles and over covered roof light to right hand side. Plate 5 General overview of gutters to rear elevation.

14 Plate 6 General overview of roof to rear outrigger. Plate 7 General overview of ground floor accommodation. Plate 8 General overview of basement accommodation.

15 Plate 9 Damage caused by investigations into structure of the property, which have not been made good. Plate 10 Evidence of dry rot within Male WC.

16 Plate 11 Dry rot within bar area. Plate 12 General overview of bar showing contamination from flooded sewer.

17 Plate 13 Stairs from ground to first floor which require nosings. Plate 14 Typical WC accommodation.

18 Plate 15 Dry rot present within adjoining owners property, above Male WC to Mr Q s. Plate 16 General overview of storage accommodation at second floor level.

19 Plate 17 Typical corridor showing removed floorboards at second floor level. Plate 18 General overview of floor at second floor level requiring reinstatement following installation of services.

20 Plate 19 Typical collapsed ceiling at second floor level.

21 Plate 20 Internal gutter at third floor level which require relining and removal of pigeons. Plate 21 Typical WC accommodation at third floor level.

22 Plate 22 Signs of ongoing water ingress at third floor level. Plate 23 Services which may be live at second floor level. Plate 24 Early signs of dry rot within roof space to front of building.