Examples

Question 1

School land. Describe the current site

Answer 1

3 bed 2 storey brick build detached house constructed in the 50’s with an open gable roof and part white rendering to the brick work

No planning had yet to be agreed

Question 2

School land, what approaches did you use

Answer 2

existing use value of the dwelling and sale of land whilst the other method was based on development value of the whole site

Question 3

School land. What development did you assume

Answer 3

• By looking at other schemes in the area I was able to assume a 14 unit scheme could be realised for the site.

Question 4

School land. What residual value did you have

Answer 4

This gave a proposed residual value of £800,000 for the land and £550,000 for the domestic dwelling

Question 5

School land. What were the external cost, contingency, demolition costs and developers profit assumed

Answer 5

Externals were valued at 15% which reflected the number of large trees on the site which could cause issues

Standard contingency of 5%

Demolition costs of £25,000 (£10,000 per storey)

20% developers profit for the scheme as it was small scale and therefore reflected risk

Question 6

Reading office. What figures were considered

Answer 6

• Yields for Reading are 5% and rental value is typically £37.5 per sq/ft for grade A space. 4% yield for reversion due to covenant strength and secured lease. Reversion at 6.5% to reflect the risk of finding a new tenant and letting grade B space

Question 7

How did you reflect blight

Answer 7

Through comparables. In instances where blight could not be found a backstop figure of 10-15% was used which had been based on analysed sales evidence