Post by bernard on Aug 5, 2018 9:33:19 GMT
This development does not stack up when looking at the costs versus current value of the property. As stated in the valuation report:
The analysis of development proposal and costs provided suggest that the
development into two flats does not present a viable proposition when compared with
value as a dwelling house. The Applicant estimates the Gross Development Value
(GDV) as £900,000. Substituting this value into the same analysis and assumptions,
the current value of the site as a development proposition is £322,000. Adding
projected developers profit of £135,000 still concludes that the development is not a
viable proposition for a developer when compared with value as a dwelling house.
So how do we make sense of this one??
The analysis of development proposal and costs provided suggest that the
development into two flats does not present a viable proposition when compared with
value as a dwelling house. The Applicant estimates the Gross Development Value
(GDV) as £900,000. Substituting this value into the same analysis and assumptions,
the current value of the site as a development proposition is £322,000. Adding
projected developers profit of £135,000 still concludes that the development is not a
viable proposition for a developer when compared with value as a dwelling house.
So how do we make sense of this one??
