Inputs
- Units: 12 PDR Class O flats (mix 1B and studio at NDSS minimum).
- GIA per unit: 580 sqft. NIA: 84 percent (487 sqft saleable each).
- GDV: 12 x 487 x 510 = £2,980,440. Round 2.98m.
- Build: 12 x 580 = 6,960 sqft GIA = 646.6 sqm. 646.6 x 1,750 = £1,131,550.
Residual ledger
GDV | £2,980,440 |
Build cost (conversion) | (£1,131,550) |
Professional fees (11% of build) | (£124,471) |
Prior-approval studies + planning(noise, daylight, transport) | (£35,000) |
Contingency (12.5% of hard+soft) | (£161,378) |
Finance interest (10.5%, 14 months, 50% avg) | (£89,003) |
Subtotal costs | (£1,541,402) |
Target profit (22% PoC) | (£339,108) |
Residual before SDLT gross-up | £1,099,930 |
Divide by 1.05 SDLT gross-up | £1,047,553 |
Max land bid | £1,047,553 |
| Verdict | APPROVED (assuming vacant possession and clean Class MA prior approval) |
Caveats
- Daylight (BRE 209) study must clear; many CR0 office blocks fail and the scheme aborts pre-planning.
- Vacant building must remain vacant 3 months pre-application under Class MA.
- Asbestos register, structural survey and M&E condition all need budget; treat as fees uplift if unknown.