Level Two - Example two (Marylebone) Flashcards
Talk me through this instruction
- ToE, COI and competence
- Desktop review - comparable rental and investment comps.
- Established MR and capitalisation rate
- Calculated GDV
- Took away PC to get NDV
- Took away construction costs
- Construction Costs
- Professional fees
- Contingency
- Calculated Profit on cost
What are standard purchasers costs?
6.8%
What are the PC made up of?
Legal, surveyor and stamp duty
What area do you apply construction costs to?
What profit metric were you using?
What level of profit were you targeting?
20%
Is there anything that would have led to you increasing or decreasing this target level?
Construction costs increasing, contingency increasing due to inflation increase and interest rates rising?
Are there any ways you could have minimised your risk?
Increased contingency
What were your professional fees applied?
10%
What are your professional fees made up of / split between individuals?
Architect, M&E consultants, project mangers, structural engineers
What was your contingency allowance?
5%
Why did your client require a development appraisal?
How did the BCIS costs compare to building consultancy team?
In-line with each other.
How did the profit on cost compare to their target?
What is the typical build cost of a refurbishment of a typical office in London?
£350 psf on GIA and then £100 psf on top on the NIA for fitted part
What is ERV and how would you calculate?
Estimated rental value - compiled a schedule of comparables - compared them to condition, configuration, location, size to get a psf
What are purchase costs?
6.8%
5% stamp duty
1% agency
0.5% legal
3% VAT on agency and legal fees
