Value of Land for development purposes

The Value of land for development depends on a number of factors. For example, what can be built there and what likelihood is that planning permission would be granted. 

There are a myriad of potential costs in a development so assessing these carefully helps in determining the costs related to the plans. For example, costs include construction, Section 106 and CIL payments to the local authority or Mayoral CIL payments. A financial viability report will help determine whether what level of Section 106 payment is appropriate to make. Modelling from Valuation reports are critical for this. 

Similarly, development finance, sale and letting costs. A reasonable expectation for a developers profit will vary depending on the scale and location of the development. Clearance, contamination and utility costs can complicate matters further, particularly when they delay the time spent until the build is complete and units can sell. 

As well as assessing the costs, the gross development value of the development plot needs to be considered. What is being built? Is there an affordable housing provision allocation within it. 

Your development may simply be building an extension onto your house and you want to know whether the added value will outweigh the costs incurred. It may be that you are considering building another property or a number of flats or houses. Our Valuation reports can identify the potential costs and added value by doing so. 

Once instructed to carry out a Valuation, we are normally able to provide our report within a week and can often, if necessary meet tighter deadlines where required. Larger portfolios may of course take longer but we will discuss implications with you at an early stage.

At Websters, we are Chartered Surveyors, regulated by the Royal Institution of Chartered Surveyors. Our services span most of London and some surrounding areas including Hertfordshire, Buckinghamshire, Essex and parts of Surrey and Sussex. 

Please contact us if you would like to discuss your requirements on 020 8017 1943.

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