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)
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
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)
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
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
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
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
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)
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
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