Development Appraisals Flashcards
What is CIL?
What is S106?
What are the differences between CIL and S106?
How can a development appraisal be used in valuing developments?
Tell me about planning/costs/GDV/individual site elements in relation to
a development appraisal?
What is a Monte Carlo simulation?
What is a sensitivity analysis?
How do you carry out a sensitivity analysis?
What variables might you change and why?
What factors affect sensitivity of a development appraisal?
Tell me about your understanding of RICS Financial Viability in Planning/Valuation of Development Property
Tell me about your understanding of incorporating affordable housing
into development appraisals
What is an S curve?
Tell me about your due diligence when undertaking a development appraisal
What sources of information do you use when undertaking a development appraisal?
How do you calculate GDV/NDV/finance costs/project costs/project timescales etc?
How do you calculate developer’s profit?
What other metrics can you produce from a development appraisal?
What is the difference between a residual valuation and a development
appraisal?
Tell me about software you have used. What are the differences between these and when may one be more suitable than another?
Give me a limitation of a piece of software you have used.
What is profit on cost/profit on GDV? When would you use one/both of these?
What is internal rate of return?
How does IRR differ according to your client’s requirements?
What is viability?
What is a Financial Viability Assessment (FVA)? Why would one be carried out?
What are the key viability benchmarks? What are the key inputs and outputs?
What is site value for a scheme-specific FVA?
When undertaking a Local Plan or CIL FVA, how is site value defined?
What happens if a scheme is deemed financially unviable for a developer?
What are the main forms of finance available to developers?
What are lenders’ current requirements in relation to gearing?
What is mezzanine finance and how is it priced?
What information do lenders generally require regarding a property
before agreeing to lend?
What is the difference between senior debt and equity finance?
What is a charge?
Tell me about an external factor which influences the appraisal process
Explain what the Golden Brick means in relation to VAT.
What tools do Natural England provide to help developments achieve
biodiversity net gain (BNG)?
What is BNG?
What % improvement in biodiversity value should development deliver? What sets out this requirement?
Explain how the Residential Property Developer Tax works. What rate is the tax at?
Level 1
Tell me about a development appraisal you have carried out.
Level 2
Tell me about a sensitivity analysis you have carried out.
Tell me about where you source information and data from for development appraisals.
Tell me about how you would assist in the selection of appropriate sources of development finance.
What are some of the drawbacks of using BCIS as you did at Dyke Road?
What alternative sources of build costs might you use?
What are the drawbacks for a per sq. ft comprable valuation such as North Road, Brighton? What adjustments did you need to make and why?
What did the sensitivity analysis for North Street, Brighton show and how did this affect your advice?
How did you value the affordable housing at North Road, Brighton?
What are the pros and cons of using software like Kel Delta instead of producing a long hand appraisal?
