On-Demand Content

On-demand online courses by leading property experts

Session 1: An Introduction to Development Appraisal 

  • Residual Valuation, Development Appraisal or Cost Benefit Analysis?
  • How to value Development Land
  • Land Speculation and Betterment
  • Planning risk vs Development risk – what is the difference?
  • Risk Management and the necessity for profit
  • Redevelopment Options – from redecoration to retrofitting, refurbishments and redevelopment
  • Volatility and interpretation of results
  • The lifecycle of a development project and different stages
  • Legal, insurance and environmental considerations
  • Where to go to get your data

Session 2: Appraisal Methodology & Sensitivity Analysis  

  • A detailed ‘walk through’ an appraisal from A to Z
  • Measurement Standards and Floor Areas
  • Assembling your data and reviewing your information sources
  • Capitalising income and calculating Capital Value
  • Breakdown of Development Costs with cost checklist provided
  • Basis for Site Cost in an Appraisal
  • How to calculate finance costs.
  • Measurement of profit and viability
  • Understanding Sensitivity Analysis
  • Version tracking, accompanying notes and assumptions
  • Worked examples

Session 3: Project Refinement, Ground Rent Derivation, Inflation & Growth

  • Right scheme, wrong answer? Interpreting the results
  • Scheme refinement – measuring efficiency of design
  • Maximising site value, but at what cost?
  • Cost Comparison
  • Marginal Viability Analysis
  • Elemental and Phase Viability Analysis
  • Viability for Planning and Community Infrastructure Levy
  • Timing, phasing and interim receipts
  • Ground Rent Derivation and Joint Ventures
  • Cost inflation and value growth
  • Tax considerations

Session 4: Cash Flow & Appraisal Software

  • Project programming and the importance of timing and phasing
  • Finance costs, interest calculations and ‘S’ curves
  • Turning an appraisal into a cash flow
  • Detailed review of a cash flow model
  • Understanding Discounted Cash Flow (DCF)
  • Internal Rate of Return (IRR) or Net Present Value (NPV)?
  • Review of available appraisal software
  • Dynamic appraisal monitoring and budget tracking
  • Constructing an appraisal model in Excel – template provided