How to use the Property Development Appraisal Tool UK: full video tutorial
Unit-mix GDV, every cost, development finance, residual land value, a sensitivity table and peak funding. Education only.
▶ Play the tutorial (11:17)About this tutorial
A full appraisal of a UK development: the unit mix and GDV, every cost, development finance, the residual land value, a sensitivity table, a monthly cashflow and the returns on your cash. This full guide walks you through every box and result in the Property Clues Property Development Appraisal Tool, using a worked example: a six-house scheme with a £1,910,000 GDV.
What you'll learn
- Building the unit mix and GDV
- Land, build, fees, contingency and other costs such as S106 and CIL
- Development finance: loan to GDV, loan to cost and rolled-up interest
- Profit on cost, profit on GDV, residual land value and returns on equity
- The sensitivity table, what-ifs and the monthly cashflow
Chapters
- £349,820 profit on a £1,910,000 scheme (example)
- Finding your way around
- The unit mix
- Getting the GDV right
- Land and build
- Purchase costs, fees and contingency
- Other revenue and costs
- Finance, target and timing
- How the loan is sized
- The headline results
- Profit on cost or profit on GDV?
- The residual land value explained
- What if the land costs more?
- Costs, finance and returns
- Where the money goes
- Stress tests and cashflow
- Timing and the cashflow
- What if the build overruns?
- What if interest rates rise?
- Reading the sensitivity table
- Checks and recap
Figures in the video are a worked example. Property Clues tools are educational calculators and checklists, not financial, tax, mortgage or legal advice. Speak to a qualified adviser about your own situation. The voice in the video is AI-generated.