24 Sep 19 by Stephen Maycock
What Is The Purpose Of Conducting A Feasibility Study?
If you are a land or property owner, whether that be residential, commercial or agricultural and think your land or property has development potential then a feasibility study can be undertaken at the earliest stage of the project to outline the land/properties development potential.
What Is A Feasibility Study?
The main purpose of a feasibility study is to assess the financial viability of developed land and whether it will be a success or failure. The study aims to highlight problems and risks that a potential plot will face such as gaining planning, local authority, assessing current development supply & demand and the suitability of a site, neighbours and so forth.
What Type Of Properties/Land Require A Feasibility Study?
Examples of a property with development potential include: –
- Tired/dilapidated/vacant buildings,
- Parcels of land with current use or former use, eg builders’ yard, parking area etc,
- Existing residential dwelling with substantial gardens,
- Old barns or other agricultural buildings,
- Fields/agricultural lands near city/town/village.
What Are The Benefits Of A Development Feasibility?
The conclusion of a development feasibility study is to access whether you are going to benefit from the development process before investing time and money in the planning process.
A feasibility study is an instrument to:-
- Understand the opportunity and limitations to a development.
- Financial viability determines how best to financially structure and plan the development process to maximise value.
- Gross Development Value (GDV) assessment.
- Planning restrictions, requirements and obligations.
- Type of planning applications such a full or detail consent, outline, reserved matters, conservation areas, listed, prior notification, tree preservation orders, material amendments etc.
- S106, affordable housing and CIL contributions assessments.
- Supply and demand assessment for a potential unit mix.
- Recommendations for appropriate further surveys including, ecology, drainage, arboricultural, contamination, archaeological etc.
- Sensitivity testing on cashflows and concepts where potential costs and sales values can damage a scheme’s viability.
- Construction costs assessment including fees, utility, sales/marketing, contingency etc.
Related Article: Lease Regear
How Can Vickery Holman Help?
Vickery Holman commercial estate agents are experts at carrying out Site Appraisals and Feasibility Studies.
If you have a potential plot and wish to investigate matters further, we can discuss and investigate possibilities and ensure development is possible before investing money and time in the planning process.
Vickery Holman has a track record providing comprehensive feasibility studies for a range of private and public bodies on a range of land and existing buildings.
Vickery Holman is specialists in development and land across the South West working closely with different planning consultants, architects, engineers, accountants, solicitors etc. We can provide you with relevant professionals throughout the development process.
If you have any further questions or which to discuss an opportunity please do not hesitate to get in touch.