Inputs
- Units: 3 two-bed mid-terrace.
- GIA per unit: 950 sqft. NIA: 88 percent (836 sqft saleable each).
- GDV: £343/sqft x 836 sqft x 3 = £977,550. Round to 977k.
- Build: 950 sqft = 88.3 sqm GIA per unit; 264.8 sqm total. 264.8 x 2,350 = £622,280 build cost.
- Wait. Correction: 3 x 950 sqft = 2,850 sqft GIA. 2,850 x 0.092903 = 264.8 sqm. 264.8 x 2,350 = £622,280 build cost.
Residual ledger
GDV (3 x 836 sqft x £343/sqft) | £977,550 |
Build cost (264.8 sqm x £2,350/sqm) | (£622,280) |
Professional fees (11% of build) | (£68,450) |
s106 / CIL / BNG (3 x 8,000) | (£24,000) |
Contingency (7.5% of hard+soft) | (£53,605) |
Finance interest (S-curve, 9.5%, 14 months, 50% avg)(roll-up) | (£42,720) |
Subtotal costs (excl land + profit) | (£811,055) |
Target profit (20% PoC) | (£162,211) |
Residual before SDLT gross-up | £4,284 |
Divide by (1 + 5% SDLT) = 0.952 land + 0.048 SDLT | |
Max land bid | £4,080 |
| Verdict | ABORT (land bid below realistic LS6 floor) |
Why this deal aborts
LS6 GDV per sqft mid is £343. Yorkshire BCIS mid £2,350/sqm. Costs eat 83 percent of GDV before profit. The residual collapses to a token figure once 20 percent PoC is reserved. To make this scheme pencil you need either: (a) GDV 380+ £/sqft (high band), or (b) build cost trimmed to £2,000/sqm (low band), or (c) target PoC dropped to 12 percent.
The lesson
Mid / mid inputs do not pencil in Yorkshire on 3-unit terraces at 20 percent PoC. Either bid below the mid GDV expectation, find a low-cost contractor, or take a smaller margin. Or walk.