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Development Appraisals

Development Appraisals Stoke on Trent, Staffordshire

Get A Development Appraisals In Staffordshire, Cheshire With Rory Mack!

The land residual method is used in development appraisals to assess the market value of land or land and buildings, where there is potential for the land to be put to a higher value use. Examples include:

  • Land being sold for residential, commercial or industrial development
  • Existing buildings that could be cleared and the land redeveloped for another use
  • Existing buildings that can be converted to another more valuable use

There are usually 4 stages in the land residual method:

  1. Establish the development potential within the market for that parcel of land in that location. The method is used to assess value on a 'what if' basis. This means that the resultant figure depends on all necessary permissions, licenses and other authorisations being obtained to undertake the scheme.
  2. Assess the value of the completed scheme. The Gross Development Value (GDV) is calculated using the comparative or income approach. The comparative method would be used for developments of apartments and houses. If the scheme is of a commercial nature where the space created is likely to be leased, GDV will be estimated using the income approach. An understanding of values through local knowledge and experience is an important factor in assessing the projected values.
  3. Assess all the development costs, including an amount for normal profit and for the finance costs and interest charges on the capital (money) needed to fund the whole of the scheme.
  4. The costs are added together and deducted from NDV to arrive at a Gross Residual Value (GRV).

We have a team of Chartered Surveyors and RICS Registered Valuers experienced in the preparation of development appraisals for residential and commercial development schemes. Here at Rory Mack we provide our clients with development appraisals across Stoke on Trent, Staffordshire, Cheshire & Shropshire. So be sure to get in touch for more information!

We offer development appraisals across Staffordshire, Cheshire and Shropshire including these towns: Leek, Buxton, Congleton, Sandbach, Biddulph, Kidsgrove, Leek, Crewe, Nantwich, Market Drayton, Stafford, Stone, Cheadle, Alton, Eccleshall, Winsford, Stoke-on-Trent, Madeley, Newport, Draycott, Trentham, Shrewsbury, Wilmslow, Chester, Telford, Cannock, Holmes Chapel, Middlewich, Northwich, Macclesfield, Newcastle under Lyme.

What Is A Development Appraisal?

The definition of a development appraisal is an objective visibility test of the ability of a development project to meet its cost including the cost of planning obligations. This also ensures that an appropriate site value for the landowner and a market risk return to the developer of the property in delivering the project. We know that development appraisals can be not only confusing but stressful too. That's why here at Rory Mack we make sure that you understand what is going on every step of the way. We have years of experience in this service so you know you're guaranteed a quality service with us here!

Development Appraisal Definition

The RICS define a development appraisal as an objective financial viability test of the ability of a development project to meet its costs including the cost of planning obligations, whilst ensuring an appropriate site value for the landowner and a market risk adjusted return to the developer in delivering the project.

Call us on 01782 715725 or email enquiries@rorymack.co.uk where a member of our team of Chartered Surveyors and RICS Registered Values will be happy to help.

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