Case Study Questions Flashcards
1
Q
Can you briefly explain the content of a fee quote?
A
Conflict of interest check confirmation.
My fee + VAT.
Basis of valuation.
Information about the property and address.
Expected date of work to be completed by.
Client details.
2
Q
Can you tell me what the loan terms of the instruction were?
A
55% loan to GDV for a proposed term of 18 months.
3
Q
What loan-to-value ratio would you tend to expect?
A
50-70%
4
Q
Can you name any other common basis of value?
A
Fair Value
Investment Value
Market Rent
5
Q
What is Fair Value?
A
The price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
Used for accounting purposes.
6
Q
What is contained in your confirmation of instruction letter?
A
Client’s agreement to the proposed fee basis.
Payment of expenses and how they’re calculated.
Details of the Property.
Basis of Value.
Identification of Valuer.
Terms of Business attached which contains information on my company’s PII and CHP.
7
Q
What is the impact (if any) of the private single-lane track on the development and what condition was it in?
A
The existing driveway is a tar and chip surface in good condition.
Additional lay byes will be added to the existing single land track to facilitate the increased volume of cars in accordance with Condition 12 of the planning permission.
8
Q
Were you aware of any obligations on the future purchasers for them to look after the road?
A
I was aware of an existing management company which wa set up for the existing dwellings. The developer had informed me that they were going to set up a seperate management company which would coincide with the existing and that service charges would not exceed £500 per annum per dwelling which I believed not to be particulary onerous. I stated this within my report and that more significant service charges had the potential for negative impacts on GDV and the GDV is based upon the max. £500.
9
Q
Did you confirm with the vendor as well as the borrower what the agreed parcel of land being bought was?
A
I confirmed with the borrower who forwarded me confirmation from their solicitor in regards to the agreed site plan being purchased. I confirmed with my client afterwards to ensure we were of the same understanding, which we were.
10
Q
How important was the level of specification to determine GDV and can you explain elements of the specification?
A
Yes, that is very important because it is a significant element in regards to the characteristics of the proposed units and an element which I look for and consider in direct comparables.
Specification comprised of high-quality appliances in the kitchens, integrated kitchen units, quartz worktops, underfloor heating systems, high-quality kitchen and bathroom units.
11
Q
What is the hierarchy of comparable evidence?
A
Category A (Direct Comparables)
- completed transactions of similar properties with full details
- completed transactions of similar properties with enough data present
- asking prices
Category B (General Market Data)
- historic evidence
- indices
Category C (Other Sources)
- evidence from other locations and types
12
Q
What is a typical IRR rate for a developer?
A
30% roughly.
The larger the site, the lower the IRR as far away from getting the money and being in a positive position.
13
Q
What makes up your 7.5% of professional fees and how was this split?
A
Architect (usually a highest proportion of fees - approx 30% in this instance)
Quantity Surveyor
Engineer
C.D. Manager
H&S Consultant
Building Control
14
Q
What typical % of professional fees would you expect?
A
8-10%
15
Q
What changes would you make if you were to revalue the property today?
A
Increase the finance costs and reassess the build costs and sales values.
16
Q
What was the most salient comparable new build scheme and why?
A
I believe they were all very important when considering different aspects and units of the scheme but Ambassador Square, Cheshunt for the smaller 2-bedroom units and The Grove, Goffs Oak for the larger units were very salient.
Their private and exclusive nature of development and the specification as I have mentioned were large factors in considering the evidence as this was a unique nature of the subject scheme.
17
Q
Where there any onerous conditions in the planning permission that could affect the value?
A
There was nothing significantly onerous within the conditions.
18
Q
What does the bird nesting compensation refer to in condition 15 of the decision notice?
A
Two Ecological Appraisals had been undertaken in August 2019 and July 2020 which found a single roost of two common pipistrelle bats located in gaps where the mortar was missing from one of the ridge tiles on the western elevation of the proposed units 8&9.
This was of low conservation significance because the presence at this time of year suggests that it was a non-breeding day roost.
However, mitigation measures are necessary but this simply comprised of pre-erecting a bat box in close proximity to the subject roost prior to the soft strip of roof tiles. The soft strip would need to occur under the supervision of a licenced ecologist to ensure no harm is done. If any bats are found the Ecologist will carefully remove them and place them in the bat box.
The compensation for the loss of this low conservation status day roost will include the installation of four modified ridge tiles designed to allow access into the ridge.
19
Q
What would have been the impact if Great Crested Newts had been found within the ‘Ecological Appraisal, Bat & Great Crested Newt survey’?
A
I understand that they can only be moved at a certain time within the year and therfore it could have had an impact upon the timescale of the development.
20
Q
What impact could a delayed or prolonged developemnt period have on the MV?
A
It would have a negative impact due to the extended length of finance costs and would have reduced the IRR.
21
Q
What is IRR?
A
Internal rate of return is a time weighted measure of return.
Internal rate of return is the annual rate of growth an investment is expected to generate.
The higher the IRR the better. Reduce timescales to improve.
22
Q
What is profit erosion?
A
The period within which the profit from the development is eroded after completion due to holding charges (i.e. interest charges, building insurance, security and utility charges).
23
Q
If you didn’t have Argus Developer Software how would you have valued this site?
A
I could have set up a cashflow using an excel spreadsheet.
The basis of an appraisal is GDV - (costs +profit)
24
Q
In relation to condition 17 in the decision notice what could be the expected cost of an electric car charging point, do you know what price the developer accounted for/ if they accounted for this and where was it included in your appraisal?
A
Yes, this was accounted for within the developer’s costings. It was approximately £500 per car charging point.
25
How did you factor in the risk of property not being safe for use in your inspection?
Within my risk assessment prior to inspecting, I identified potential hazards such as falling materials and trip hazards which was the reasoning for my safety helmet and steel toe capped boots.
26
Why did you recommend an asbestos survey?
in reference to the RICS Guidance Note of Surveying Safely (2918), it states that members have a legal duty to provide advice on asbestos if we have a reason for concern - in this case I did.
27
How did you identify the asbestos?
It is difficult to conclusively determine whether a material contains asbestos from visual inspection but I had concerns due to the colour and texture of the roof sheeting and taking into consideration when the buildings were likely to have been constructed.
28
What would you expect to see in an asbestos demolition survey?
Identification of the specific areas with asbestos.
The date of inspection and samples were taken.
recommended action points.
Approximate cost of remediation.
29
What type of asbestos could it have been?
I wouldn't be able to say for certain but it is likely to have been white asbestos (chrysotile) due to it being the most common.
30
Is there any specific legislation in regards to Asbestos which you are aware of?
Yes, 'Control of Asbestos (2012)' which is policed by the Health and Safety Executive. All works must be undertaken by a licensed contractor.
31
Plot 5 – lower MV than Plot 2 even though it is bigger – what is your reasoning?
The reasoning for this was the positioning of Plot 5. It sits centrally among the nine units and has therefore a less private nature in comparison to Plot 2.
32
In reference to planning condition 22 about the need for a desk-top ground contamination investigation - how did this impact your valuation?
I did not have site of any Ground Investigation or Contamination Surveys and at the time of our inspection, there were no obvious signs that the Property was affected by adverse ground conditions and I made the assumption that this was the case.
However, I caveated within my report saying that I reserve the right to amend my valuation accordingly if this does not transpire to be the case.
33
What was the purchase price? Did it differ from the value and why?
It was around £3,000,000 which was slightly lower than the MV which was justified from my understanding that the vendor was looking for a quick sale which the developer had agreed to.
34
In reference to BNG in condition 14 of the decision notice, what is BNG?
Biodiversity net gain delivers measurable improvements for biodiversity by creating or enhancing habitats in association with development.
It is an approach to development with the intention to leave the natural environment in a measurably better state than it was beforehand.
In this case, it will be more straightforward due to the brownfield nature of the site. It will be done through landscaping, planting and the remediation of the existing pond.
35
How is BNG measured?
It is measured by looking at four areas:
area of habitat;
the distinctiveness of habitat;
condition of habitat and;
strategic location.
36
Why did you apply the higher BCIS rate?
Because I felt this was a reflection of the high standard and specification of the product to be expected from the information I had been provided with.
37
Did you get permission to state your client's name? Why would you need permission?
Yes, because it's confidential information.
38
What is a special assumption?
A supposition that is taken to be true and accepted as FACT.
39
Can you have as many special assumptions as the client would like?
Special assumptions may only be made if they can reasonably be regarded as REALISTIC, RELEVANT and VALID for the particular circumstances of the valutation.
If a client requests a valuation on the basis of a special assumptionthat the valuer considers unrealistic, the instruction should be declined.
40
Can you tell me about the location and surrounding area of the subject Property?
The Property is located in the Hertfordshire countryside to the north of the market town of Ware. Approximately 20 miles north of London and 45 minutes into Liverpool Street.
41
How was the subject superior to the new build comparable - The Grove?
The four-bed units are larger in size in comparison and The Grove
42
Why did you use a 10-mile radius for your re-sale comparable evidence search?
I initially searched for a three miles radius for 2 year period but this didn't throw up any comparable evidence. Therefore, I widened my search radius to 10 miles and limited my search to a 1 year period.
43
According to the RICS, why do new-builds have a premium?
Due to being brand new and never lived in.
Apply 10 - 15%.
New builds typically have a warranty of 10 years:
NHBC is the UK's leading independent standard-setting body and provider of warranty and insurance for new homes.
Offers:
- First 2 years = defects insurance period i..e any faulty products
- Years 3- 10 = structural insurance period
44
Did you try any other ways of verifying your appraisal due to the absence of land comparables?
I undertook an extensive search across various websites and spoke with local agents which had no luck. After speaking with senior experienced members of the team I felt happy with my appraisal.
45
What was your reasoning for Unit 5 being £30,000 higher in value compared to Unit 6?
Unit 5 is nearly 300 sqft larger than unit 6 and it has 3 ensuite bedrooms, one of which is a master bedroom with a dressing room too.
46
Can you give me another example of a special assumption you could value a property on the basis of this?
1. Planning consent has been granted for the development when in reality / at the date of valuation it is still pending approval.
2. the property is vacant when in reality / at the date of valuation it is occupied.
47
What was the size of the Ambassador Square development?
There were seven new build terraced courtyard garden units and 4 further apartments.
48
What aspect of the Red Book did you refer to when preparing the Loan Security Valuation?
In Part 5: Valuation Application section, VPGA 2.
49
What is the definition of MV?
The estimated value for which an asset or liability should exchange on the valuation date between a willing buyer and willing seller after proper marketing and at an arms-length transaction.
50
What is a special assumption?
An assumption that assumes facts that differ from the actual facts existing at the valuation date.
51
Where would you find the definition of MV in the Global Red Book?
In Part 2: Glossary.
52
Where would you find the definition of the GDV?
In the Glossary of RICS Guidance Note 'Valuation of Development Property (2019)' & 'Assessing Viability in Planning (2019).
53
What is the definition of the GDV?
The aggregate market value of the proposed development, assessed on the special assumption that the development is complete on the date of valuation in the market conditions prevailing on that date.
54
Why did you ensure that your ToE was signed prior to starting the job?
To ensure my client had read the content of the Terms of Engagement and Terms of Business to reduce the risk of any miscommunication. Also provides security over the associated PII if there was to be a claim for negligence further down the line.
55
What risks did you identify prior to inspecting?
asbestos and the potential for falling materials due to potential structural concerns.
56
What is a deleterious material?
Deleterious materials can degrade with age causing structural problems.
57
What is asbestos and why did you have concerns about its presence?
It is a fibrous material which can degrade and release dangerous fibres/ particles which if breathed in can get lodged within the walls of people's lungs and can cause cancer/ breathing difficulties.
I was concerned due to the assumed age at which the property was constructed and it is a common material used for such buildings.
58
Would the track need to be amended to an adoptable standard?
No, because the road was not adopted, it was private. I confirmed this by informal enquiries of the Hertfordshire Council website.
Other than in relation to condition 12 of the approved planning stating that additional lay byes will need to be added there are no further amendments that need to be made in association with the development.
59
What was the entrance to the Property like from the A1170?
Moles Farm has existing access onto the A1170 roundabout which is adequate to serve the proposed development. the Highway Authority raised no objections and said the main road junction is satisfactory.
60
Did you value upon the special assumption that rights of access had been granted?
We valued on the assumption due to confirmation from the borrower's solicitor that this forms part of the sale agreement, however, we did caveat within my report that if this was not to be the case then this would have a significant negative impact on the value and I retain the right to amend my valuation accordingly.
61
What is full planning permission?
Full planning permission presents full, exhaustive details of a development proposal, all reserved matters are approved. It would include details such as the size, design, orientation and material details of any proposed units and further amenities/ facilitating works required such as means of access and drainage.
62
What is the difference between full and outline planning?
Reserved matters are withheld in regard to outline planning permission.
Outline planning permission is used to gain an understanding as to whether the nature of a development is acceptable, this can help ensure viability up front.
63
Did you have sight of any RICS documents in regards to measuring land?
Yes, the RICS Guidance Note 'Land measurement for planning and development purposes (2021)'.
64
Why would you look at £psf and sales rate comparable evidence?
the £psf is a good indicator of providing a range if you have sales data from a comparable development but it is less useful when looking at individual comparable evidence.
Therefore depending on the comparable evidence, I would usually use one or the other as a sense check against the other.
65
What does NHBC stand for?
National House Building Council
66
Is NHBC transferable if you were to sell your house within 10 years?
Yes, it is transferable for the remainder of the term.
67
What document did you have sight of when looking at comparable evidence?
The RICS Guidance Note 'Comparable Evidence in Real Estate Valuation (2019)'
68
In the 'Valuation of Individual New Build Homes (2019)' document, what does it state to be the benefits of a New Build a home/ the premium granted?
- initial occupier prestige
- latest specifications and gadgets
- reduced maintenance liability in the short to medium term.
- access to government initiatives such as help to buy
- new local infrastructure built with homes#
- high energy-efficiency rating
69
What is the definition of 'new-build premium'?
The additional sum that a purchaser is prepared to pay for a residential property that has not previously been occupied.
70
What use class did the Property fall within?
Agricultural Use Class
71
What was the construction of the existing builings?
The buildings were of substantial construction and built of a mix of brick, timber and steel with corrugated steel and slate tiled roofs.
The northern barn attached to the southern, square formation appeared to be a newer addition of red brick construction which was in better condition in comparison to the southern barns which are of yellow brick construction.
The buildings comprise: timber, single glazed casement windows, the majority of which have smashed window panes; uPVC guttering and; several timber doors around the facility.
72
What details are commonly included within reserved matters?
- Appearance of buildings/ development (the look)
- Means of access
- Landscaping
- Layout
- Scale
73
In regard to the Rights of Way being granted, is this an easement or wayleave?
This is a type of easement and it would be written into the land registry title deeds.
74
What is a wayleave?
A wayleave is a licence provided by a landowner with the right to access land/property.
Usually a rental figure for an agreed period of time. Whereas easements are permanent.
75
How did you formulate your fee quote? What would you have done differently if it had been a private individual?
- assessed the necessary resources which would be required.
- time required.
- approximate value of the Property to ensure PII cover.
= my fee and it states the value of VAT.
I wouldn't have amended my fee quote for an individual as the layout I use is very clear and transparent as to whoever my client is.
76
Do both the bases of valuation you adopted have Red Book definitions (GDV and MV)? If not, where might you find the definition of GDV?
MV
Valuation - Global Standards (2021)
GDV = defined in the two RICS Guidance Notes
Valuation of Development Property (2019)
Assessing Viability in Planning (2019)
77
Give me three things that must be included in valuation terms of business.
My firm's PII cover.
Our liability cap.
CHP details.
Details we will require in accordance with Money Laundering Regulations (2017)
78
What is the difference between full and extant planning permission?
Extant planning is effectively 'active'. Planning which has been granted becomes extant as soon as a spade has been put in the ground. therefore it cannot run out. Useful in circumstances where the 3year period is coming to an end.
79
When was the date of your valuation?
As of the inspection date.
80
Was the property serviced?
Yes, we were informed that mains gas, water, electricity, drainage and telecommunications are all available to the Property.
Albeit in my report, I advised that we assumed all existing services have the capacity to accommodate the development and that no extraordinary works were required to upgrade the capacity.
81
What is the purpose of being a Registered Valuer?
This is to ensure they have the relevant knowledge and experience to undertake/ assist with the valuation.
82
When undertaking your risk assessment prior to inspecting what were you looking for in terms of identifying risk?
In regards to Surveying Safely (2018):
1. Identify a hazard
2. Identify who this could affect
3. Identify the risk of this happening (likelihood) and the precautions
4. write this down within my risk assessment saved within the directory of the job
5. decide on the control measures and those who were at risk (ie. my colleague with whom I inspected)
83
In regards to your measures taken in reducing the risk of hazards identified what did you do?
I reviewed the Surveying Safely (2018) 'hierarchy of risk control' which states:
1. Elimination (n/a)
2. Substitution (n/a)
3. Engineering controls (n/a)
4. Administrative controls - this was done by avoiding lone working and undertaking the instruction with my colleague.
5. PPE - we wore appropriate PPE (safety hat, high vis, steel toe-capped boots and COVID-19 PPE).
84
Where you aware of any incentives that your developer might be offering in regard to the scheme when they come to sell the proposed properties?
I wasn't but new builds would typically offer 10-year warranty.
85
What does the land registry record for new build premises?
They report on the NET SALES PRICE - as developers will often add incentives such as free kitchen appliances to the sales.
Developers need to complete a disclosure of incentives form to Land Registry.
86
The scheme included single-storey dwellings but I cannot see a comparable for this dwelling type, so how did you get to the GDV on these?
Yes, sales evidence was restricted in this nature but I understand and am aware through experience that single-storey properties tend to achieve a higher value £psf sales rate due to the proportion of the land utilised in comparison to the sqft of unit space. Therefore, I considered this within my £psf applied.
87
You mention completion costs within your appraisal - what were these?
£65,000
The developer had accounted for snagging costs and cleaning and clearing the site.
88
What was included in your preliminary costs applied?
I am aware preliminary costs are included within BCIS and in hindsight, this would be better labeled as either 'abnormals' as opposed to preliminaries.
When assessing the independent QS Build costs provided to me by the borrower I noted that the cost for the removal/ demolition of the water tower addition of lay byes was omitted from the cost plan. I, therefore, spoke with an independent QS and they advised an additional 8.5% cost to be applied and this would be a reasonable cost consideration for the associated works.
89
What was the situation with regard to the maintenance of the private access road? Did you take this into consideration when calculating your GDV?
I was aware of an existing management company in place for the existing residential dwellings which I was informed was no more than £500 annual payment for each unit.
The developer informed me that they will be feeding into this existing management company and payment of no more than £500 per unit will be payable by the new owners upon sale.
I did not believe this to be of any onerous concern in regards to GDV for a site of this nature.
90
What was included in the external works costs?
£184,000
Garage structure, connecting utilities, foul drainage, landscaping, surface water drainage, and water tower removal.
91
Can you talk me through the timescales assumed for the development?
Total 17 months:
2 months pre-construction (setting up the site and getting to a stage to start)
12 months construction
6 months of sales (1-2 sales per month)
92
Your residual land value equated to 43% of GDV - did you consider this to be reasonable?
Yes in this instance I did because the development was a conversion of the existing barns and therefore was at a more advanced stage in comparison to a green field site for example. If this was the case I would be expecting to see a figure more in the region of 20-30% albeit in the current market with rising build costs and inflexibility in developer's profit margins the land values are what end up being squeezed.
93
If the passing places were to have been on an adopted highway, how are such works undertaken?
A section 278 agreement is a section of the Highways Act 1980 that allows developers to enter into a legal agreement with the council (in the capacity of the Highway Authority) to make permanent alterations or improvements to a public highway, as part of a planning approval.
94
Can you tell me why the lender wanted both values of MV?
Because they can loan on various bases. Loan to GDV or Loan to Value. Helps them to assess the risk.
95
What does BCIS information exclude?
VAT
Contingencies
Fees
External works and facilitating works.
abnormals
96
Where within your valuation did you include the associated costs of removing the water tower and the tree to replace it as a landmark - regarding condition 8 of the approved planning?
Landscaping and fencing were included in the external costs of the scheme and it was approximately £50,000.
97
Why did the borrower elect to go down the formal planning route and not the Class Q route to obtain planning?
This was because of the demolition aspect and the fact that the development was too large (exceeded 450 sqm of existing space and the proposed development was more than 3 units).
If the existing floor space exceeds 450 sqm then class Q is not permitted.
If the cumulative number of separate dwellinghouses developed exceeds 3 then class Q is also not permitted.
98
What was included within your Terms of Business that is specific to loan security valuation?
- Identify and confirm of competence of valuer
- Bases of Value
- Any special assumptions and assumptions agreed/ requested by the borrower
-
99
Generally speaking, what construction technique had been used across the site?
Concrete slab flooring, strip foundations, solid brick external walls identified by headers and footers/ stretchers, steel rafters, pitched roof with a mixture of slate tiles, corrugated metal roofing covered in mastic and potential asbestos cement roof sheeting to the north, and a small section of the southern barn.
From my due diligence undertaken I understand that the southern barns were likely built around the 1920's - 1940's whilst the northern extension was likely built around 1950's-19-70's (hence the further risk of asbestos).
100
You identify possible ACM rooves. How did you account for this in your valuation?
I accounted for this by increasing the contingency allowance from approx 5% to 10%.
101
Did you expect a premium for barn conversions when calculating your GDV and assessing comparable evidence?
Yes having spoken to local agents they felt that a premium would be applicable to the proposed scheme as seen in the Willis Grove comparable evidence. However, the units were slightly smaller and the Ball Park development is a very exclusive high-end development situated with 67 acres of private estate and therefore I believe achieved more of a premium than the subject.
102
What is the variance between Class Q and Class R in terms of permitted development?
Class Q = agricultural to residential
Class R = agricultural to commercial
103
When would you use a Development Appraisal?
I would use a development appraisal when I needed to calculate the profit of a client's proposed development, or offer advice on a proposed development.
104
What are the limitations to the residual method?
1. The use of assumptions and not real costs.
2. Assumes 100% debt finance which isn't realistic.
3. Small changed to inputs can have a large impact on profit/residual land value.
As per the RICS guidance note: Valuation of Development Property 2019 - you should cross-check with the comparable method.
105
What are the three forms of sensitivity analysis?
1. Simple sensitivity analysis of key variables i.e. GDV and construction costs.
2. Scenario analysis - changes scenarios for the development content i.e. changing the phasing of the scheme of its design.
3. Monte Carlo Simulation - using probability theory, using software such as 'Crystal Ball'.
106
What abnormal costs can occur in a development?
1. Ground Contamination.
2. Ground retention needed.
3. Piled foundations being required.
4. Allowances for flooding.
107
Would your professional fees change if the site didn't have planning permission already?
No professional fees usually refer to technical works necessary.
But I would make a separate account for planning costs within my appraisal.
108
What are the three ways you could calculate the finance rate?
1. Bank of England base rate + premium
2. Might be provided in the client's loan terms
3. The SONIA (Sterling Overnight Index Average) + premium (variable lending rate between banks for a three-month borrowing term)
109
What are the main reasons a developer needs finance for?
1. Site purchase
2. Construction costs & associated costs
3. Holding costs to cover voids until site is disposed
110
What are the two main methods of funding?
1. Debt finance - taking a loan
2. Equity finance - selling shares, JV or own money
111
What are the forms of finance available?
1. Senior debt - first level of borrowing
2. Mezzanine - additional money required over the LTV
112
What are some of the weaknesses of BCIS information?
- Often taken from public sector development which has a reduced specification.
- Need to account for exclusions within the data.
- Offers guidance but specific costs of a project can vary.
- larger housebuilders tend not to submit data, so costs are inflated.
113
If you didn’t have an internal database, how would you do a conflict of interest check?
I would send a company wide email.
114
Did you check purposes or timescales of the RoW with the solicitor?
Timescales would have been into perpetuity due to it being an easement that forms part of title deeds and the purpose would have been residential use.
115
What is the difference between an easement and wayleave?
116
Why did you use BCIS to check the build costs for terraced conversion?
It is the Building Cost Information Service for the RICS.and it is the leading provider of cost and price information to the construction industry.
117
Was an asbestos survey undertaken?
No there hadn't but I advised that this would be necessary due to the date of the property being built
118
Why did you use 10% contingency?
From experience and advice from experienced members of my team developments with existing builders in place have a higher 'risk' in terms of the unknown. Therefore I increased the contingency to 10% to account for this risk of unexpected costs arising during the build.
119
How did you calculate the plot cost without numerous similar comparables? Did you talk to other local agents?
Yes, I spoke to local agents who didn't have any direct comparable evidence but I considered wider evidence from development land sold to ascertain the private plot value of £200,000 - £250,000, and due to the stage at which this development I determined along with the advice of agents, I spoke to that a higher plot value would be a fair reflection on MV.
120
When assessing the comparables, how did you compare new build comps with barn conversions?
In regards to the Guidance Note on 'Valuation of individual New Build Homes' (2019) it identifies that new build dwellings and conversions would achieve a premium on the open market due to the incentives associated with new build dwellings such as the NHBC warranty associated characteristics such as likely to have the most up to date specification and
121
Can you talk me through how this high specification would be achieved with the level of build costs?
Integrated kitchen and utility appliances.
Quartz work surfaces
Underfloor heating
LED lighting system
High-quality fixtures and fittings
High-quality Italian bathroom suites
122
Could you talk me through Best Practice Valuation Methodology in the RICS Valuation of Development Property?
Dual method - residual and then comparable.
123
How did you make sure the agents in your office knew about land values in Hertfordshire?
They had sufficient experience and knowledge of the Essex, East Hertfordshire, east London and southern Suffolk regions due to working with the residential development team in Chelmsford for a significant amount of time.
124
What would make a good land comparable?
A similar-sized group of agricultural buildings sold with planning permission for the conversion into residential dwellings.
125
Why did you not use the land comparable with the barns in Bishops Stortford?
126
What is included in BCIS all in-build costs?
Prelims
superstructure
Substructure
.....
127
What was the annual maintenance cost expected to be for the road in relation to the existing ManCo?
£psf??
