Development Appraisal: Maximising our Clients Profits in Dulwich
Its a busy week, DMP onsite in the London Borough of Southwark, completing a Development Appraisal on a detached vacant property with large garden.
The extensive property, specifically located in the affluent area Dulwich, requires a new lease of life.
The client has agreed terms 24 hours prior to purchase the freehold property. Our very own John Whitlock, Managing Partner attended to consider options for conversion and extension of the property. Our pictures below illustrate that the space is currently redundant commercial accommodation over ground and first floors, with a view to provide new residential accommodation.
To demonstrate, a development appraisal is an essential tool to assess the value of any piece of land, site or building which has development potential. Careful management of the financial side of a development is key to being profitable and ascertain how much you can afford to pay for a site. This analysis starts with a detailed development appraisal.
The technical term for a development appraisal is a residual method of assessment. In simple terms, its a calculation or formula which gives you the land value or property value as the final output, based on a set of assumptions for revenue and cost.
Land Value = Gross Development Value – (Fees + Costs + Profit + Finance)
To that end, John Whitlock has in excess of 16 years experience advising and assisting clients in particular of commercial to residential scheme maximising value. If you require any help or advice at any stage of your commercial or residential project, contact us and we can talk you thought it.