Level Two - Example Two (Haringey)

Question 1

How did you account for the fact the scheme had planning permission?

Answer 1

I did not include the cost in my appraisal

Question 2

How did you establish land price?

Question 3

How did you reach your gross development value?

Answer 3

Market Rent and Market Value

Question 4

Talk me through this instruction

Answer 4

Market rent and market value - capitalisation rate - GDV - calculated NDV - less construction, professional fees, contingency - then calculated the costs and calculated the profit as a percentage of the cost

Question 5

What was the profit on cost in this instance?

Question 6

What was the construction costs?

Question 7

What is BCIS?

Answer 7

Build Cost Information Service

Question 8

What does BCIS tell you?

Answer 8

Build Costs by area

Question 9

How have build costs been affected over the past couple of years?

Answer 9

Build Cost Inflation

Question 10

What is the knock on affect of build cost inflation on development appraisal?

Answer 10

Smaller profit margins