Development Appraisals L2 and L3 Flashcards

1
Q
  • Can you explain the property for development in York?
A
  • Development Appraisal
  • Supported living scheme
  • Brownfield site £1M house
  • Permission for 25 beds (1 and 2 bedroom apartments)
  • 50% of property saleable space - lots of communal
  • Information provided by client (three tender prices)
  • Development profit £1M (same as Homes England Grant)
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2
Q
  • How did you gather the GDV for the York development?
A
  • Collected comparable evidence of supported living accommodation – McCarthy and Stone apartments
  • Adopted a capital rate to each apartment - £250,000 to £350,000
  • Total = £7M
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3
Q

What were the figures for the York development?

A
  • GDV £7M
  • TDC £6M - medium tender price
  • Developer’s Profit £1M (15% GDV)
  • Homes England Grant = profit

(Sensitivity Analysis - all tender prices viable)

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4
Q
  • What do you know about supported living accommodation?
A
  • Understand the fundamentals of the varying care and support facilities
  • Similar to a normal apartment development however has communal space
  • Care attribute wasn’t to be valued
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5
Q
  • Can you explain the property for development in Manchester?
A
  • Development Appraisal
  • Council and not-for-profit developer
  • 91 residential apartments (1 and 2 bedrooms)
  • Build to rent
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6
Q
  • How did you gather the GDV for the Manchester development?
A
  • Collected comparable evidence retirement apartments rental evidence
  • Expanded to Greater Manchester area
  • Adopted circa £1,000 pcm
  • ARY of 6%
  • Total = £18M
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7
Q

What were the figures for the Manchester development?

A
  • GDV £18M
  • TDC £20M
  • Site investigation costs £4M
  • Negative £2M Developer’s Profit
  • Not for profit (only needed to break even)
  • Advised that development not viable with such high site preparation costs
  • Development did not proceed
  • Undertook sensitivity analysis
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8
Q
  • Can you explain the property for development in Harrogate?
A
  • Residual Valuation
  • Council and affordable housing developer
  • Brownfield site (former railway sidings)
  • 1.5-acres
  • Permission for 20 townhouses (2-4 bedrooms)
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9
Q

What were the figures for the Harrogate development?

A
  • GDV £5.5M (houses £250k - £400K and 4 properties set at £75k)
  • TDC £4.5M
  • Developer’s Profit 15% GDV
  • Remaining Land Value £800,000
  • In-line with comparable land at £500k per acre
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10
Q

How did you identify the affordable housing provision?

A
  • Information provided by client
  • Contacted Local Authority for information (set rate)
  • Often a % below MV
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