Development Appraisals

Question 1

What is CIL?

Question 2

What is S106?

Question 3

What are the differences between CIL and S106?

Question 4

How can a development appraisal be used in valuing developments?

Question 5

Tell me about planning/costs/GDV/individual site elements in relation to
a development appraisal?

Question 6

What is a Monte Carlo simulation?

Question 7

What is a sensitivity analysis?

Question 8

How do you carry out a sensitivity analysis?

Question 9

What variables might you change and why?

Question 10

What factors affect sensitivity of a development appraisal?

Question 11

Tell me about your understanding of RICS Financial Viability in Planning/Valuation of Development Property

Question 12

Tell me about your understanding of incorporating affordable housing
into development appraisals

Question 13

What is an S curve?

Question 14

Tell me about your due diligence when undertaking a development appraisal

Question 15

What sources of information do you use when undertaking a development appraisal?

Question 16

How do you calculate GDV/NDV/finance costs/project costs/project timescales etc?

Question 17

How do you calculate developer’s profit?

Question 18

What other metrics can you produce from a development appraisal?

Question 19

What is the difference between a residual valuation and a development
appraisal?

Question 20

Tell me about software you have used. What are the differences between these and when may one be more suitable than another?

Question 21

Give me a limitation of a piece of software you have used.

Question 22

What is profit on cost/profit on GDV? When would you use one/both of these?

Question 23

What is internal rate of return?

Question 24

How does IRR differ according to your client’s requirements?

Question 25

What is viability?

Question 26

What is a Financial Viability Assessment (FVA)? Why would one be carried out?

Question 27

What are the key viability benchmarks? What are the key inputs and outputs?

Question 28

What is site value for a scheme-specific FVA?

Question 29

When undertaking a Local Plan or CIL FVA, how is site value defined?

Question 30

What happens if a scheme is deemed financially unviable for a developer?

Question 31

What are the main forms of finance available to developers?

Question 32

What are lenders' current requirements in relation to gearing?

Question 33

What is mezzanine finance and how is it priced?

Question 34

What information do lenders generally require regarding a property before agreeing to lend?

Question 35

What is the difference between senior debt and equity finance?

Question 36

What is a charge?

Question 37

Tell me about an external factor which influences the appraisal process

Question 38

Explain what the Golden Brick means in relation to VAT.

Question 39

What tools do Natural England provide to help developments achieve biodiversity net gain (BNG)?

Question 40

What is BNG?

Question 41

What % improvement in biodiversity value should development deliver? What sets out this requirement?

Question 42

Explain how the Residential Property Developer Tax works. What rate is the tax at? ## Footnote Level 1

Question 43

Tell me about a development appraisal you have carried out. ## Footnote Level 2

Question 44

Tell me about a sensitivity analysis you have carried out.

Question 45

Tell me about where you source information and data from for development appraisals.

Question 46

Tell me about how you would assist in the selection of appropriate sources of development finance.

Question 47

What are some of the drawbacks of using BCIS as you did at Dyke Road?

Question 48

What alternative sources of build costs might you use?

Question 49

What are the drawbacks for a per sq. ft comprable valuation such as North Road, Brighton? What adjustments did you need to make and why?

Question 50

What did the sensitivity analysis for North Street, Brighton show and how did this affect your advice?

Question 51

How did you value the affordable housing at North Road, Brighton?

Question 52

What are the pros and cons of using software like Kel Delta instead of producing a long hand appraisal?