Development Appraisals Flashcards
What are the purpose of Development Appraisals?
1) Analysis of a scheme to consider whether the level of planning obligations is viable.
2) Can the required level of profit be achieved.
3) Assessing best and highest use for a property/comparison of different schemes/proposals.
4) Assessing affordable housing requirements.
What is sensitivity analysis?
Changes made to individual inputs to see how these affect the profitability or viability of the scheme.
What are city centre residential land values at present?
£20k to £30k per unit depending on location
How do you work out finance rate?
Bank of England base rate plus premium based on risk, usually 2% for residential
What is the aim of the valuation for development property professional standard?
The aim of this professional standard is to guide the valuer in the approach to development property valuations, which are often complex, have a potentially high variation and incorporate optionality.
