Development appraisals
One of our specialities is assisting clients with inner city development from valuations for banks or shareholders to pension funds.
The method a valuer uses to derive the land value of a development site is known as a development appraisal.
The land value is highly influenced not only by the postcode but also the likely permitted development on the site.
1. Issues that the Valuer has to weigh up include:
- street frontage and return frontage (can be taken into account to enhance the permitted planning density)
- current land use
- land use earmarked in UDP
- build density of nearby buildngs
- planning prescedents in the area
- policy on car parking
- policy on mix of units
- policy on lifetime homes, access and design
- likely land contamination and remediation costs
- ground condition and foundation issues
2. Then the Valuer has to weigh up factors to help him/her quantify what 'new build premium' should be applied. Factors that may be relevant will include:
- proximity to open space
- proximity to transport infrastructure
-
parking provision on site (included, spaces to be sold/rationed)
- balconies, terraces, outside space
- aspect (south facing?)
- landscaping schemes
- specification, number of bath/shower rooms, audio wired
- room ratios, how accommodation out-performs older properties
- for apartments, lease length
- comparable new build sales
- local 2nd hand stock sales
3. In weighing up costs the Valuer has to take into account:
- market building rates
- construction costs (including builders profit)
- bank interest on the land
- development costs and profit
A whole lot of expertise goes into a development appraisal.
At Ringley our team is able to draw from:
- our Block Management team who set service charges for both small and large schemes. They understand the running costs and how to move the responsibility of future maintenance onto the service charge
- our Building Engineering team whose costing expertise and contract administration expertise assists in benchmarking clients' costing analysis
- our Town Planner who spent 40 years on the other side of the fence (in the public sector) before joining our private practice
- Wedmore St, London N19
Once a scenery and props store for the Royal Opera House, this victorian building was ripe for development. Ringley advised the developers on a range of issues, including the safety of keeping the original Victorian facade of the building.
- London N10
Details to come.
- London N10
This old cinema...Details to come.
For more information Call: 020 7267 2900or Email Us »
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