Valuing Land With and Without Permission

The uplift, the option percentage and your real return

The gap between the value of land without planning permission and its value with permission is large, and it is exactly why careless investors come to grief. This book teaches you to turn the seductive headline uplift into a sober real return. It picks out the numbers that matter, shows where to find reliable data for free rather than relying on an agent's optimism, and explains what income means when there is no rent. The cost chapter shows why so many land deals that look wonderful turn out ordinary once the large and numerous costs of development are counted. The appraisal is stress-tested against the changes that years of waiting bring, and a complete worked example follows one invented site from the uplift to the real return, including the option percentage. The final chapter sets out a disciplined sequence to run on every opportunity, and the legal questions it cannot answer. Next in this series: “Option Agreements With Landowners”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void, the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.