Development appraisals (lvl 1) Flashcards
What is CIL?
What is S106?
What are the differences between CIL and S106?
How would you estimate likely S106 and CIL contributions?
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?
What sources of information do you use when undertaking a development appraisal?
Tell me about your due diligence 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?
What are the procedural similarities between a residual valuation and a
development appraisal?
What is a development appraisal seeking to measure?
What are the common output metrics?
Talk me through the key inputs when undertaking a development
appraisal.
If you do not have site specific figures, how would you account for
professional, legal and marketing fees?
How is an indicative scheme used in a development appraisal?
How can a planning appraisal inform a development appraisal?
How can a development appraisal help inform a site acquisition
decision?
What do we mean by special assumptions?
How would you estimate build costs?
Which construction industry inflation indices can you use?
Where would you source reliable sales and value information?
How can you use comparable sales information to inform a
development appraisal?
What is GDV?
What is IRR?
What is profit on cost?
What’s the difference between a DCF development appraisal and a ‘normal’ development appraisal?
How can you ensure your cash flow shape is accurate?
What is a discount rate?
How do you account for affordable housing commitments in a
development appraisal?
What do we mean by project viability versus project feasibility?
What do we mean by risk appetite?
On one site, which inputs might change if we are conducting a
development appraisal for a specific client versus a generic
development appraisal without a specific client in mind?
How would you decide what land value to input in your development appraisal?
When inputting build costs, what measurement basis do you use?
When inputting sales values, what measurement basis do you use?
What is a typical contingency rate?
How would you reflect the additional costs involved in building on
contaminated and/or brownfield land?
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 this 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?
How do you decide what financing rate to use?
What usually impacts a client’s financing rate?
How do you make sensible assumptions about the development
programme? Who might you consult?
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?
What other software could be used to produce development appraisals?
What are the negatives of a residual valuation?
What impact can issues have on your appraisal?
What external factors affect the viability of a scheme?
