Case Study Flashcards
CS: On the site map, what does the red crosses mean on the road?
Change is level/ gradient
CS: What does TCB mean on the site map?
Telephone call box
What do the black dots on the site map mean?
Obstruction
On the site map, it says farm, do farms suffer from contamination? If so how would you reflect the risk of contamination?
Yes. Increasing the build costs/ contingency/adding a higher site clearance cost
CS: What contingency did you adopt? if there was no contamination what contingency would you use?
I used 7.5%. If there was no contamination I would use 5%.
How did you reflect planning risk?
Increased timeline, increased contingency, increased professional fees
What factors affect your profit on cost?
Risk to how easy/ quickly units will sell
How did you identify the site boundary?
Looked at land registry
if the property/ site was not on Land Registry how would you find out the site boundary?
-Old title deeds potentially held by the client.
-If all the surrounding sites are registered then you can work out the boundary.
What is the benefit of having a registered title?
Legal Certainty and Security
Clear Boundaries and Easements
Simplification of Transactions
On the site map, what does the T at the top right mean?
Drainage ditch
CS: Who undertook the massing study for the site?
JTP Architect
Did you spot any asbestos on site?
CS: No I also requested if an aspestos register had been created. it had and it concluded that there was no asbestos on site
Where might you find asbestos in a 1960’s building?
Window boards
Corrugated roof
Piping insolation
How did you determine the capital value of the proposed development?
I used comparable evidence to determine a spot price for each resi unit time. I then used the price per sqft to sense check my MV.
CS: Would all the same unit houses have the same value?
As I was undertaking a high-level appraisal I determined it was sufficient to do a bended average rate for the MV. If my client wanted me to further analysis I would provide a different amount per unit.
CS: What type of measurement did the architects use?
GIA
CS: Is the rate per sqft for the build costs a blended average?
No i applied a different rate on the flats and the houses
What was the base rate on your valuation date?
5.25%
CS: What else could you have done a sensitivity analysis on?
Sales rate, construction rate and timeline
Define EUV-SH
Existing Use Value- Social Housing. Outlined in VPGA 7. Refers to the best offer at the date of valuation.
CS: Your comparables are quite out of date, why?
Given that the proposed development was going to be finished at a high spec, I thought the comps I used were of a higher quality. I am aware of other developments at the time of the appraisal, but I considered the comps used more comparable at the time. I also used these comps as I was able to get achieved prices, which are more reliable.
Case study: What costs are included within your external costs?
Road works, landscaping works etc
CS: Why did you have a finance cost of 8%
-Reflect market interest rates
-Risk premium
-Cost of different types of capital used in project
-Market conditions and lender requirements at time of appraisal
What debt finance rate did you use and why?
100%. Reason:
- Simplification
-maximising leverage
- stress testing the project
-modeling worst-case scenario
What is the process of instructing a sub-consultant?
-Confirm Subconsultant competence and qualifications
-Assess conflict of interest
-Define the scope of work
-Draft terms of engagement
-Obtain the client’s consent
-Coordinate and monitor the sub-consultants work
-Review and incorporate the sub-consultants work
What is currently happening in regards to first homes?
Current first homes are still provided as policy. However, the government is trying to phase FH out.
Case Study: What is included within the professional fees you have allowed for?
-Architects fees
-Project management fees
-Quantity Surveyor fees
-Structural engineer fees
-Planning consultant fees
