Examples

Question 1

Haringey valuation

Answer 1

Residual
Internal purposes 
Development site
Yet to obtain planning
17.5% PoC increased to 20%
\+ 6 months

135 units
MV £850 psf
Build cost £250 psf

Question 2

Bow LS valuation

Answer 2

Residual
LS purposes
development site
checked build costs with BCIS/building surveyors
Sensitivity analysis 

79 units
MV - £675 psf
Build cost £200 psf
BCIS median £175 UQ £210 psf
30% fall at worst

Question 3

Romford internal valuation

Answer 3

DA
Internal purposes
2 developments - 109 and 121 units (more 1 beds, better for market)
SA of planning permission
121 scheme had higher IV

GDV changes: £575 vs £600psf
Build cost: £190 vs £200psf
Fees: 8% v 9% 
Rate of sale increased slightly
All other same (PoC 17.5%, contingency 5%)

Question 4

Tooting valuation

Answer 4

Residual 
LS purposes
Development site
Construction yet to commence
Raised contingency from 3% to 5%

75 units
£240 psf build cost

Question 5

Wimbledon valuation

Answer 5

Valuation
LS purpose
Development site
Comparable method for GDV

47 new build town houses

Question 6

Bow internal valuation

Answer 6

Quarterly valuation
Internal purposes
New build development
Downvalued

23 apartments

Question 7

Tottenham valuation

Answer 7

Internal purpose
Desktop basis
New build development
Advised of implications in ToE and report

135 apartments

Question 8

Romford LS valuation

Answer 8

LS purpose
Development site
Investment method
BTR asset

120 apartments

Question 9

Bow valuation in ethics section

Answer 9

Valuation of mixed use site
LS purpose
Passed on commercial element to commercial team

Question 10

Soho valuation ethics example

Answer 10

Valuation
Development site
LS purposes
Borrower wished to discuss figures before reporting
Made client aware and told borrow about my duty of care

Question 11

Croydon valuation ethics examples

Answer 11

Valuation
Internal purposes
Desktop basis
Informed client of risk, put in ToE and report

Question 12

Poplar valuation client care example

Answer 12

Valuation
Internal purposes
Speak to client’s architect to get most up to date plans

Question 13

Wimbledon valuation communication example

Answer 13

Valuation
LS purposes
Development site
Comps -> Clear and effective communication with agents

Question 14

Croydon valuation H&S example

Answer 14

Valuation
Development site
LS purposes
Arranged full suite of PPE

Question 15

Tooting Inspection

Answer 15

Valuation
LS valuation
Development site
Arranged PPE and inspected local area and comps

Question 16

Highgate inspection

Answer 16

Valuation 
Internal purposes 
Older block of mansion flats 
Damp 
Was minor at the point of investigation
Advised specialist advice be sought and agreed SA of remediation with client

Question 17

Kew inspection

Answer 17

Valuation 
LS purposes
Development site 
Next to railway line
Impacts the flats - used comps nearby to estimate impact

Question 18

Hampstead measurement

Answer 18

Valuation
Portfolio for internal purposes
Mansion blocks/completed units
Used GIA

Question 19

Felixstowe measurement

Answer 19

Valuation
Internal purposes
Development site
Check measurements on scaled plans

Question 20

Harringey why 20%? Why add 6 months?

Answer 20

1) Planning risk
2) Sales risk / Size of scheme (135 units, quite large)
3) Location - away from transport

Considered the returns an incoming purchaser would expect from the site when considering the relative risks

6 months to reflect planning. confirmed with planning team to be reasonably attained and 6 months an appropriate time estimate

Question 21

Tooting why 5% contingency? Why did you then allow for contingency?

Answer 21

1) Had third party environmental report
2) Had third party detailed build cost analysis
Discussed both at length with internal building team

Still need to reflect potential risks during construction phase e.g. weather, late deliveries, cost of goods

Question 22

Bow development appraisal, what was the build cost and BCIS? How many units?

Answer 22

Build cost £200psf
BCIS 3-5 storey in tower hamlets
Median £175 psf UQ £210 psf

79 units

Question 23

Romford development appraisal - what changes did you reflect between the schemes?

Answer 23

1) GDV - £575 vs £600 psf
2) Build cost - £195 vs £205 psf
3) Fees - 8% vs 9%
4) Rate of sale - 3 per month

Other inputs remained consistent / provided by developer
PoC 17.5%
Finance 6% 
Contingency 5% 
Agents legals 1.5% / 0.25%
Land agents legals 1% / 0.5%

Question 24

Wimbledon valuation, which comps? What values? Why look at second hand?

Answer 24

My value: £575 psf
47 town houses

Ram quarter - £700 psf
Cambium - £600 psf
Smaller schemes on A24
The Grid - £600-750 psf

Second hand to provide useful indicator of immediate surrounding market. New build not always better.
Modern renovations attract similar purchaser profile.

Question 25

Tottenham valuation - key figures

Answer 25

Internal val, completed scheme 135 units £850 psf Key comps - Hale Works, Lock 17, Apex House.

Question 26

Bow valuation. What factors? Which comps? Which agents? How much of a fall?

Answer 26

``` 23 apartments Pre-2019 election, brexit uncertainty Fish Island, Aberfeldy, Ropemakers Yard JLL, Winkworth, Savills, KFH 5% fall from £675 to £650 on average ```

Question 27

Romford valuation - key figures? What did you report?

Answer 27

``` 120 units PD MR £31psf MV £575 Cap rate 4.25% Purchasers costs 5% 21% Opex + 2% void 5% discount to VP / IRR 6% MV stabilised and sold ``` ``` Land value using development appraisal 9 month let up - calc rent received less costs PoC 17.5% Build £200 psf Contingency 5% Fees 7.5% Finance 6% ```

Question 28

Client care examples?

Answer 28

1) Nine Elms sales - contact with vendors | 2) Poplar val internal purposes - contact with other advisors e.g. architects, cost consultants

Question 29

Communication & Negotiation examples?

Answer 29

1) Nine elms sales 8% to 5% - evidenced rationale | 2) Wimbledon communicate with agents for comps

Question 30

H&S examples?

Answer 30

1) Croydon site inspection - arranging PPE | 2) Nine Elms - lone worker policy

Question 31

Inspection examples?

Answer 31

1) Tooting site - arranging PPE/access 2) Battersea - Market appraisal, south facing terrace 3) Highgate - Damp 4) Kew - railway line

Question 32

Measurement examples?

Answer 32

1) Hampstead GIA | 2) Felixstowe scaled plan error

Question 33

Lettings examples?

Answer 33

1) Discount of 3% | 2) Letting to student with different payment terms

Question 34

Bedford example details? Conditions on bids?

Answer 34

Sale by private treaty moved to informal tender BTR asset for developer Looking for investors - FF or FC Did DD, prepared marketing docs Set up dataroom Bids - price for the land, development agreement value and breakdown, how funded, conditions (e.g. exclusivity period)

Question 35

Windsfor example details? Pricing details?

Answer 35

``` 16 private apartments Development site Provided DD on site in report MV=£175psf MR=£11psf GDV £1m IRR 6.5% - Hurdle rate of 6% ```

Question 36

What was the PTAL of the Battersea Site? What does this mean for density?

Answer 36

PTAL of 4 Central location Delivering 2.7-3.0 hr/unit (i.e. 1 and 2 bed flats) 215 - 405 units per hectare could be delivered

Question 37

Romford BTR purchasers costs after capitalisation at 4.25%?

Answer 37

SDLT | Agents 3% Legals 1.25%

Question 38

What was the density of the battersea site before and after your advice?

Answer 38

0.53 hectares PTAL of 4 Decrease habitable rooms per unit, can increase units per hectare From 125 units to 180 by adding more smaller units Move from a maximum of 175-355 units per hectare to 215-405