Financial Viability Assessments as Part of the Planning Process
At Vickery Holman we have a team of Chartered Surveyors within our Development Consultancy Service able to provide what is often a vital cog within the planning application process. The need for a Financial Viability Assessment (FVA) normally arises where a developer considers that a planning application that is fully compliant with the relevant Local Plan policies would mean that development would not be viable.
Advisors such as Vickery Holman are often requested to provide an expert FVA report either for the applicant, or for the Local Planning Authority (LPA) in response to an FVA they have received. In providing this the surveyor will want to consider the relevant adopted LPA polices, national guidance including the National Planning Policy Framework (NPPF) and RICS Professional Standards.
An essential part of the process is establishing the Benchmark Land Value (BLV), which is based on the existing use value plus a premium for landowner. We make use of the widely accepted Argus Developer programme for our inputs and providing the outcomes for our reporting. As a sense check we also apply sensitivity analysis to see impact of changes in costs or sale prices.
In carrying out the review process we benefit from the support provided by our Agency and Building Surveyors on values and costs, and our practical development experience provide all the necessary knowledge to deliver a high quality and reliable service.
If you have any questions, please do not hesitate to get in touch with our Development Consultancy team.
