Ex

Question 1

Hotel. Can you describe the current site and the proposed site

Answer 1

Current site is a 4 storey hotel built in the 60’s, brick build with timber cladding to the upper floors a flat roof and a number of balconies.

Plans for new site consisted of a 5 storey apartment block built in an art deco style with white rendering and large panel glass windows.

Question 2

Hotel, can you give the following inputs:

External works
Demolition 
Contingency 
Professional fee
Construction cost 
Finance rate 
Profit %
Was it viable

Answer 2

• External works 5% also included undercroft parking
• Demolition of £70,000
• Contingency of 5%
• 8% professional fees
• Construction cost median rate of £1,400m²
• Finance rate of 6% fees is included as a blended rate
• Profit 17.5% of GDV
• EUV/BLV equalled £1,600,000 and proposed development gave a deficit of £14,000

Question 3

7 unit luxury scheme, what was the existing use

Answer 3

• Existing use value consisted of 3 properties which were 70’s brick build with white rendering and consisted of a cottage, bungalow and 2 storey house

Question 4

7 unit luxury scheme, can you give the following inputs:

Contingency
Demolition 
Construction cost 
External 
Contingency 
Professional Fees
Marketing 
Profit 
Was it viable

Answer 4

•	Contingency 5%
•	Demolition £70,000
•	Construction cost £1,500m²
•	Externals of 20% in order to reflect secluded nature of site and need for pipe work 
-       Contingency 5%
-       Professional fee 6%
•	Marketing 0.5% 
•	20% profit rate to reflect risk of small scale developer 
•	Deficit of £320,000 not viable

Question 5

School land, can you give the following inputs:

Profit rate
Build cost 
Professional fee
Finance rate 
Contingency 
Externals

Answer 5

• 20% profit rate to reflect risk
• Build cost £1,600
• Professional fee 10%
• Finance rate of 7%
• 5% contingency
• 15% Externals

Question 6

What are the standard ranges for the following inputs:

Agents and legal fee
External Costs 
Demolition 
Contingency 
Professional fee
Finance

Answer 6

Agents and Legal Fee
Standard 1.75% for most valuations based on acquisition costs

External Costs
Depends on the extent of works for example installation of services or paving of road. Figures typically range between 5%-10%

Demolition
Typically, £10,000 per storey however, additional costs can be incurred for the site

Contingency
Used to reflect risk however, additional factors such as profit and finance already reflect this therefore a standard 5% has been applied to all valuations

Professional Fee
This will vary based on the size and complexity of the development. Typical professional fees range from 6% - 10%

Finance Rate
Finance is based on 100% debt finance with rates ranging from 5-7% depending on the security of the developer to pay back their finance