'Red Book’ valuations
Red Book valuation of development sites. We have a proven track record of residual appraisals and sensitivity analysis which is more in-depth for complex lending solutions. We are RICS Registered Valuers.
Site Sale and Purchase Agreements
We undertake Red Book valuations to support the negotiations for the acquisition and disposal of development sites for clients. Our valuers analyse market data, site constraints and opportunities and planning policy to ensure they are reflected in the purchase price. We are regularly required to produce ‘Franking Valuations’ for Homes England and other public bodies follow a period of marketing.
Best value consideration / S.123 valuations
Our valuers work with Local Authorities to demonstrate that land is not sold at “a consideration less than the best that can be reasonably obtained” as set out under Section 123 of the Local Government Act 1972.
Local authorities are given powers under the 1972 Act to dispose of land in any manner they wish, including sale of their freehold interest, granting a lease or assigning any unexpired term on a lease, and the granting of easements. The only constraint is that a disposal must be for the best consideration reasonably obtainable.
However, it is recognised that there may be circumstances where an authority considers it appropriate to dispose of land at an undervalue, in which case the Local Government Act 1972 requires consent to be obtained from the Secretary of State. We are used to preparing valuation reports to support the disposal in these circumstances.
The general principle of compensation for land taken by compulsory purchase is that of equivalence i.e. the landowner should be no worse (or better) off in financial terms. Therefore, it is necessary to value the land on the basis of its open market value without any increase or decrease attributable to the CPO scheme. As part of the CPO compensation claim the Market Value will need to be determined on the assumptions of a “no scheme world” i.e. assuming the proposed redevelopment does not occur. This will have to have regard to the various Planning Assumptions. Our valuers are trained to advise on the Market Value to inform the CPO process and we have agreed CPO compensation for various infrastructure schemes (including HS2).
Ransom Strips / Shared Value
We value and negotiate ransom strips. A ransom strip is where a small parcel of land holds the key access to open up a much larger development site. The owner of the larger land parcel cannot develop the site without sharing some of the value with the landowner of the access.
We also advise on the use of ransom strips as a mechanism to secure land value capture from major public sector road schemes.
We work at the interface between private sector schemes and public sector investments. We have a proven track record in the preparation of business plans and the delivery of funding for both the private and public sector.
Funding Economic Case
We undertake Red Book valuations for “before” and “after” works valuations to support grant funding applications. Our valuations are used to support the uplift in land value calculations that are required as part of the HM Treasure Five Case appraisal model and National Lottery Heritage Fund programmes etc.
Development Appraisals / Feasibility Studies / Economic Viability Assessments
Whilst not strictly Red Book valuations, bring Registered Valuer discipline to residual valuations and feasibility studies ensures that our projects are fundable and deliverable.
For further information about our services browse our case studies