SDS Landval User Manual V710
Contents
1. Copyright Protected Unauthorised Copying of this Software is Illegal Open existing file Set defaults l l SDS Landval is a registered trademark a Start new appraisal l Edit database pe For support support sdslandval co uk View opened files Help www sdslandval co uk No About SDS Landval Exit Landval 01483 278 444 1 2 To Close Landval 1 Ensure any open appraisals have been closed To check that all appraisals have been closed click 2 To exit Landval and restore the Microsoft Excel environment click Exit Landval 2 0 Open Save amp Close Appraisal Files 2 1 To Start a New Appraisal 1 From the Control Panel click Start a new appraisal 2 Select the Landval Version 710 or later version 2 2 To Open an Existing Appraisal 1 From the Control Panel click Open existing file 2 Choose the appraisal file to be opened from the Excel Open dialog box Navigate to the correct drive directory if necessary 2 3 To Save a New Appraisal Return to the Home Page of the appraisal Click Gavel Check that the directory which is shown in the Save As box is correct Check the file name is correct Avoid using punctuation marks in the file name Click to save the appraisal Sh eee te 2 4 Save an Existing Appraisal as a New Version Return to the Home Page of the appraisal Click Verify the name of the new file and the directory in which it is to be saved Cl2. Landval USER MANUAL for Program Version 7 10 SDS Shelton Development Services Redcroft House Redcroft Walk Cranleigh Surrey GU6 8DS Tel 01483 278444 Fax 0845 076 3777 Email support sdslandval co uk Contents 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 Opening amp Closing SDS Landval Page 4 1 1 To Open SDS Landval 1 2 To Exit SDS Landval Open Save amp Close Appraisal Files 2 1 To Start a New Appraisal 2 2 To Open an Existing Appraisal 2 3 To Save a New Appraisal 2 4 To Save an Existing Appraisal as a New Version 2 5 To Close an Appraisal Colour Coding Navigation amp Screen Sizing 3 1 Cell Label amp Data Entry Colour 3 2 Button Colours 3 3 Navigation 3 4 Screen Sizing Setting and Applying Default Values 4 1 To Set Personal Defaults 4 2 Set Scheme Defaults 4 3 Save Default Values 4 4 Create a New Version of Defaults Values 4 5 Protect Default Values by Password Updating Data in the Database 5 1 To Open the Database for Viewing 5 2 To Update the Database 5 3 To Change the Name of the Database 5 4 To Update an Appraisal with the Latest Database Values 5 5 To Change the Password 5 6 To Update Costs in the Database Carrying out an Appraisal 6 1 Applying Defaults 6 2 Entering Data 6 3 General Scheme Details 6 4 Unit amp Sales Details 6 5 Sales Prices 6 6 Unit Build Cost 6 7 Housetype Performance Information 6 8 Unit Mix 6 9 Site Costs 6 10 Overheads 6
3. house flat type ref Floor Area Essential input Select unit of measurement ft or m Frontage Select preferred unit of measurement ftor m No of Bedrooms Enter number of bedrooms Habitable Rooms Enter number of habitable rooms Sales Price Input Essential input Enter either as a specific price or as a price per unit floor area Entries above 10 000 will be treated as a specific price Line a7 will confirm the price and the equivalent price per unit floor area will be shown underneath See also 6 5 below 17 6 4 1 To Enter Details of a Dwelling Type from the Housetype Database 1 Click on the button Insert Dwelling Typel Input from Landyal Database Select Database Flaks Three Four Now choose a Dwelling Type Enter into Appraisal Cancel 2 Highlight the required Database The dwelling type names will be listed 3 Highlight the required Dwelling Type 4 Click Enter into Appraisal 5 All information from the database for that type will be entered on to the Appraisal in the first column where the Dwelling Type Name is empty If there is no room on the Appraisal i e all Dwelling Description name cells have data in them a warning message will be shown Landval will insert the data into the first empty Dwelling Description Any other information in this column will be overwritten To undo the input click Undo I Tip When entering data from the database to avoid accidentall
4. 11 Technical Fees 6 12 Marketing 6 13 Gross Margin 6 14 Abnormals 6 15 Gross Development Value 6 16 Existing Property Resale 6 17 Acquisition Fees 6 18 Residual Land Value Net Margin 7 1 Features of the Cashflow 7 2 Creating a Cashflow 7 3 Equity amp Finance Analysis 7 4 Recovery of Costs on Sale 7 5 Return on Capital Land Value Sensitivity 8 1 Land Value Sensitivity by Profit Margin 8 2 Land Value Sensitivity by Sales Value 8 3 Effect on Land Value for Other Changes 2 U1 ul UI UI UI U NOOO O cont 9 0 10 0 11 0 12 0 13 0 Unit Profit Analysis Printing Stamp Duty Land Tax Miscellaneous Topics 12 1 Validations 12 2 Appraisal Summaries 12 3 Notes 12 4 Undo Help 35 36 1 0 Opening amp Closing the Application Landval is a Microsoft Excel based program Appraisals are saved as Excel workbooks but these can only be opened form within the Landval operating environment To share appraisals with those who do not have Landval we recommend that the Landval reports are printed and then scanned as pdf copies On opening Landval the Excel operating environment will be amended and as a precaution the user should first close any other workbooks which may be open in Excel 1 1 To Open Landval Double click on the shortcut icon on the desktop screen to open the Control Panel SDS Lan d val Development Appraisals for Residential Developers amp Professionals Ea f N Control Panel
5. Data These are all under the control of the Landval Entries application Red Descriptions Data Warning Messages or Errors Entries Orange Descriptions Memorandum information for the user 3 2 Button Colours To assist the user to move to any part of the appraisal navigation buttons are identified by The Help navigation button has a light blue background Green buttons identify that an action is performed The Start button on the Home page has a green background because when the appraisal is first started default values are applied The printer button has its own colour 3 3 Navigation Click the appropriate yellow button to move to the relevant part of the appraisal Other useful keyboard shortcuts to assist navigation are as follows lt Home gt Cursor returns to far left of screen on current row lt Ctrl Home gt Cursor returns to top left cell of the page 6 lt Tab gt Cursor moves usually left to right to each unprotected cell ready to receive input After making an input the tab button also performs an Enter action 3 4 Screen Sizing Once a new appraisal has been started all the pages in the appraisal are automatically sized on clicking the Start button on the Home page If the appraisal is subsequently viewed on a different screen size resizing can be carried out by clicking the button lt Res ize Page an gt on the Home page 4 0 Setting and Applying Default Values Default values are insert
6. also Unit Profit Analysis at Section 9 0 Loan Interest All Sales Megatiwe Rate 5 00 3 746 000 Cashflow Positive Rate auslegen in as nite i i Cashflow Costs on Sale Margin in Period 3 00 663 000 659 500 663 000 663 000 630 000 gt 44 500 40 Ae 7 5 Return on Capital Line y1 and y2 x Nett Margin 585 808 7 7 on Sales Build Finish Jun 09 Period 10 months First Sale May 09 y1 Return on Total Cap Emp pa 30 1 Exciudes Corporate Overheads Last Sale Sep 09 Period 5 months y2 IRR of Total Cashflow pa 2 40 units month The Annual Return on Total Capital Employed is calculated as follows The Annualised Operating divided by the Average Total Capital Employed where The Annualised Operating Margin is the Operating Margin i e Gross Margin after Interest divided by the Cashflow Period times 12 And The Average Total Capital Employed is the Total Cumulative Cashflow divided by Cashflow Period The ROCE will be shown on both the Appraisal at line y1 as above and on the Cashflow The IRR will be calculated on the 7ota Cashflow i e before any equity if possible The Return on Costs is also shown and this can include or exclude the interest The user must make the appropriate choice at Line t3 Development Sales 7 603 776 s Cashflow Start mmm yyyy Apr 2008 Gross Development Value 2 140 000 tt Interest Negative Bal s 6 00 Land Abnormals t2 Interest Positive Bal s 2 00 Total Build Cost 3 891 47
7. under the line Unit Mix 20 6 9 Site Costs Lines e1 to e2 e Site Costs e1 User Defined Externals Ps gt Or use Externals Appendix y Lump Sum s Per Unit e2 User Defined Abn Per ft2 Or use Abnormals Appendix y Per Net ac Per Hab Rm Site costs comprise all direct construction costs not included in the Unit Build Costs e g external works roads amp sewers infrastructure services abnormal costs These costs are split into 2 categories 1 Externals 2 Abnormals Externals can be entered either as a user defined sum or a detailed appendix of costs can be created Only one option is possible and both are shown on line ei To create an Appendix of Externals Click Complete costs for the predefined descriptions Enter descriptions and costs as necessary These can also be set by default Return to the Appraisal On line ei delete any user defined entry and set Appendix option to y ann Abnormal costs are entered in exactly the same way on line e2 To access the Abnormal Appendix click and follow steps 2 4 above Only one option can be used User defined Sum or Appendix In these Appendices the contingency provision is set at the bottom of the page The user can explicitly exclude the Appendices by entering n at the prompt label 6 10 Overheads Lines fi f2 f Site Overheads fl User Defined Sum Lump Sum 4 Per Unit f2 User De Per ft2 on sum of Per Net ac Per Hab Rm g Technical F
8. 2 For equity funding options see Cashflow Marketing Costs 228 113 t3 Corporate Overheads 7 00 Incl Interest 226 118 t4 Land Exch Deposit 10 00 200 000 Deposit ee 6 485 703 rar 1 118 073 17 2 on Total Costs Gross Margin 1 344 191 17 7 on Sales 32 8 0 Land Value Sensitivity Lines z1 to z3 z Sensitivity Current Sales Land Yalues amp Profit Margins Development Sales Value 3 623 000 Set Target X New Land Specified LY incl Ex stg Prop 1 000 000 Margins Yalue 1 Gross Margin on Development Sales 18 3 963 069 22 Bett Margin on Development Sales 11 17 371 937 23 Mett Mlargin on Total Costs foe 24 Ann Return on Cap Employed 46 20 NE Stamp Duty limits may give rise to a slightly inaccurate Mew Land Value for certain Set 1 Returns The land value can be recalculated automatically for user specified profit criteria It is also possible to carry out a sensitivity analysis by examining what percentage change in sales values is needed to achieve a target land value or target Gross Margin This second feature is not affected by the cashflow 8 1 Land Value Sensitivity by Profit Margin On the left side of the screen the current sales and land values are shown together with the following profit margins e Gross Margin on Development Sales line zi e Net Margin on Development Sales line z2 e Net Margin on Total Costs line z3 e Ann Return on Capital Employed line 24 The user can Set Target Margin
9. 606 45 264 q2 Agent Fees onLY 1 00 sumeuriit lump sum 5 671 q Legalfees 1 onLy 2 00 sumfurit lump sum 19 261 q4 Other Fees H 1 00 sumfurit lump sum 3 631 ge VAT s Faid on Mett Li 17 50 VAT Total 164 537 Fecowerable WAT 1 100 r RESIDUAL NETT LAND VALUE User Specified Nett L 6 17 1 SDLT Stamp Duty Land Tax Line q1 will show automatically according to limits and percentages shown in the Stamp Duty page When the net land value is very close to the limits of the bands an error may occur When this happens a warning message will show and the correct Land Value should then be specified as a User Specified Net LA at Line r If SDLT bands and rates change after the appraisal has been started click and make the amendments These amendments will only apply to this appraisal For global changes to the SDLT details make the changes in the Defaults file see 4 0 6 17 2 Acquisition Fees Fees for introducing agent legal fees and other fees Lines q2 q4 can be shown by one or a combination of three entry options viz a percentage of land value a sum per unit and a lump sum 25 6 17 3 VAT To include VAT on a land purchase enter the correct VAT on Line q5 This will recalculate the SDLT Line q1 on the Net LV plus the VAT If the VAT can be subsequently reclaimed then enter the relevant Recoverable VAT on Line q5 If the total VAT is reclaimable set the cell to 100 The user can make manual adjustments to the cashf
10. Exchange Start and Legal Completion End Month Numbers Click MII tne top of the Cashflow Only those cost heads which have a Month No entered by the user will be updated but see 7 1 above If the Overheads Appendix is being used there will be an option to time sales income in accordance with the Appendix timings For manual completion of the cashflow enter specific sums month by month As sums are entered the Outstanding total will reduce Ensure this total is at zero for a correct interest calculation 11 The cashflow can be completed by a mix of manual and automatic methods To 12 gt lt E b lt M prevent automatic overwriting of a cost head ensure the Start and End Month Numbers are omitted Return to the appraisal Net Margin amp ROCE Gross Margin 1 344 191 17 7 on Sales Cashflow Interest 226 118 First Event May 08 Operating Margin 1 118 073 14 7 on Sales Last Event Sep 09 Period 17 months Corporate Overheads 532 264 Build Stat Sep 08 Nett Margin 585 808 7 7 on Sales Build Finish Jun 09 Period 10 months First Sale May 09 Return on Total Cap Emp pa 30 1 Excludes Corporate Overheads Last Sale Sep 09 Period 5 months IRR of Total Cashflow pa 2 40 units month The Appraisal will show the Cashflow Interest at line u and is deducted from the Gross Marginto give an Operating Margin Corporate Overheads are deducted at line w to leave a Net Margin at line x An IRR of the Total Cashflow will b
11. Sketch Layout Identification of sketch layout drawing number to which the Appraisal relates Section 106 Notes Short description about any relevant Agreement User Comments Short Description of key information A further area for Notes is on Line aa I Tip Completion of the above information is best done by using the lt Tab gt key 6 4 Unit amp Sales Details Lines a1 to a7 Saxton i 325 000 1 000 0 oo d d S ee o 7 Unit amp Sales Details Pa al Dwelling Description a2 Floor Area a3 Frontage a4 No of Bedrooms 35 Habitable Rooms 36 Sales Price Input a Sales Value Sum or ft Sales Value Each particular dwelling type can be identified by a name or the appropriate description on the first line of the Appraisal There is room for up to 37 different types to be entered one column per type headed by the letters A B C etc On Page One A to E of the Optimisation 5 types can be entered Also shown on Page One are the Subtotals for all data entered on Page Two and Page Three together with a total for the whole Appraisal To move to Page Two click Page 2 at the top of the screen To move to Page Three click Page 3 at the top of Page Two For duplicating data input across columns use the Copy amp Pastel gadgets at the side of the page Each dwelling type can be identified with the following attributes Dwelling Description Essential input Enter specific name ref no or type
12. ante any Absa co Ate aoe ATU ne neii an ch JANE oe ae rea ied d Unit Mix ne Line c1 shows the residual value after Unit Build Costs have been deducted from the Sales Value When converted to a Optimising Value SV Unit Costs line c3 by the application of the Plotting Density line c2 then in broad terms those units with the highest Optimising will give the highest residual land value for the site Aim to get the Total at line c1 as high as possible Lines c4 to c6 give important performance statistics of the site as a whole as follows c4 Site Plotting Density Indicates the overall density e g units per acre c5 Site Cover This is the floor area per unit site area c6 Plotting efficiency This is a comparison of the theoretical net acreage that the specified unit mix requires based on the plotting densities entered in line c2 with the actual net area of the site A value above 100 indicates that the site is incapable of accommodating the specified unit mix or that the plotting densities have been underestimated A value somewhat lower than 100 indicates inefficient use of the land available based on the plotting densities entered in line C2 6 8 Unit Mix Line d ae Lab 3 Enter a specific number of units for each dwelling type at line d Site coverage details of the user specified mix will be shown in lines c4 to c6 as described above A percentage of each type in the overall unit mix will be shown
13. argin Net Profit Before Tax Interest Charge Overheads The required GM can be defined either for the scheme as a whole or for individual units The following example shows it being defined for the whole scheme Scheme GM 0 ee HE e OroM TE TT Cd ii Gross Margin In the next example Different GM are defined for each unit The weighted average GM is shown next to the total Or GM per unit 0 al ea ma ii Gross Margin On line r it is possible to enter a User Specified Net LV and a Residual GM will be displayed at Line j 23 DEE EEE ee ee ee ee Orom perunitl owt wa o EEE Residual Gross Margin m Land Abnormals mi User Defined Sum m2 User Defined Sum a Gross Residual Development Value p Existing Property Resale Resale Price p1 Selling amp Legal Costs Less Selling amp Legal Costs p2 Refurbishment VV orks p3 User Defined Sum 4 Acquisition Fees sup Total 41 SDLT Stamp Duty 2 4 00 q2 Agent Fee on LY 1 00 sum unit lump sum q3 Legal fees on LY 2 00 sum unit lump sum q4 Other Fees sum unit lump sum 45 VAT Paid on Nett LY VAT Total Recoverable VAT r NETT SPECIFIED LAND VALUE User Specified Nett LV 2 000 000 6 14 Land Abnomals Lines ml and m2 m Land Abnormals m1 User Defined Sum m2 User Defined Sum n Gross Residual Devel Entries on these lines allow further opportunities for including costs which do not fall readily
14. e have been password protected you will be required to enter the password 4 Proceed to enter values as prompted Only set values you want to use on a regular basis 5 Note that the first section of the page has a number of fixed descriptions Following these the user can define further descriptions 6 Values against each description can be entered in columns as follows The first 3 columns allow a Bill of Quantities to be produced Measured Quantity e g 107 Units e g m2 Cost Per Measured Unit e g 10 m Sum Per Plot Lump Sum of Plot Build Cost of Sales Value 7 Contingency has special input options at the start 4 2 4 Other Appendices 1 For Fees Marketing and Abnormal appendices follow the same procedure as above 4 2 3 4 3 Save Defaults Values Return to the Click On saving a file the password settings are activated if used 4 4 Create a New Version of Default Values Having set and saved a file of default values this can then be amended to suit other scheme situations and saved as a new version Open an existing default file see 4 2 Click Click l Change the input prompted by the pink label Mame of this Defaults File to another name Continue to add amend values on this page and on the appendices as required Return to the Click Follow on screen instructions u A D a ae 10 4 5 Protect Default Values by Password 1 6 Oe a IS Each page of the default values file has to be
15. e shown if it is possible to be mathematically calculated 30 7 3 Equity amp Finance Analysis On the Cashflow scrolling to the right will display the analysis of Equity and Finance Loan Interest Equity Negative Rate Cashflow 5 00 Net Cashflow Total p Cumulativel Land 350 779 Build 378 558 nn Loan Cashflow Positive Fate Cashflow Balance in Period 3 00 l after Equity Total 35 595 100 000 1 069 264 13 397 91 321 157 509 157 509 205 927 205 927 233 325 1 867 610 33325 2 144 530 251 669 1 415 495 7 ant Mt EO 4 Cf 1275 coc 251 559 704 Con Equity percentages for Land and Build can be set at the start of the Cashflow The equity is used to fund the project before resorting ot private finance No cost or interest rate on the use of the equity is charged Note that the equity total is used to fund all cashflows regardless of whether they arise from Land or Building expenditure 7 4 Recovery of Costs on Sale This is shown on the far right of the Cashflow page Total Costs are written off against the Sales Income on an averaged cost basis and pro rata the sales income Therefore in the example below the first income of 663 000 has a Recovery of Costs on Sales of 541 658 The sales income is 17 7 of the All Sales and the cost recovery is therefore 17 7 of the Total Costs The Gross Margin showing in the last column is therefore always the same as a percentage of the Sales Income See
16. eb 2004 Date 7 Jun 2004 Prepared by Fred Smith Site No Reference 123 Scheme Name A Site Agent Barnes amp Wallis Local Authority Reading Owner Mr Greedy Site Area ha 0 76 ha gross 1 88 ac Sketch Layout Alt Nett Site Area d 0 60 ha nett 1 48 ac Section 106 Notes None applicable Appraisal Version 1 User Comments Units 0 These are shown at the beginning of the Appraisal and apart from the Site Acreage are all optional entries Date This will be today s date on creating a new Appraisal It will remain fixed unless overwritten Tip To overwrite an old date with today s date use a key combination of lt Ctrl semicolon gt Scheme Name Site Address Project Name Local Authority Relates to scheme s location Site Area This can be entered in hectares or acres To select the preferred unit of measure change the label description Enter the gross area of site This will default to the Net Area cell but can be overwritten see next label description Alt Net Area Enter net developable area here if different from the gross Appraisal Version Assists the user to identify the particular Appraisal where more than one Appraisal has been carried out e g when using different mixes costs values Prepared By User s name or initials etc Site No Reference User s internal reference number or other identification for a particular scheme 16 Agent Name of the introducing or selling agent Owner Land owner s name
17. ed at the time a new appraisal is created All default values can be overwritten on the appraisal There are two classes of default values Personal Defaults and Scheme Defaults Personal defaults consist of the printer name your user name and the nominated file for saving your appraisals Scheme defaults are set in separate file on the system and are accessible by all users Different sets of default values can be created 4 1 To Set Personal Defaults Ste a iS From the Control Panel click Set Defaults Select the Personal Defaults option and click OK Place the cursor into the first input prompted by the label Printer Select a printer name from the choices presented and click OK In the next field enter your name initials Click into the last field labelled Nominated Folder for Appraisal Files Browse for a preferred folder anywhere on the system where you will want to save appraisal files click OK Click to save your settings 4 2 Set Scheme Defaults 1 From the Control Panel click Set Defaults 2 Select an appraisal default file Note that apart from Personal Defaults all names appearing at this position are valid default files Click OK This will open the selected file at its Home Page position ABC Limited Default Values View Defaults VER Appraisals for Residential Developers amp Professionals Version Df3 0 Save Defaults The defaults in this file are called Demonstration ye As New V
18. ees Or use Overheads Appendix y Site overhead costs can be defined in one of three ways viz 1 by user defined sum 2 summarised in an Appendix or 3 calculated by a percentage on the Build Cost To enter as a user defined sum use the input box on line f1 and ignore all other inputs in this section 21 To create an Appendix of Overheads 1 Click l Define 7ota Build Period by entering dates for Start on Site Sales Rate units week or a Sales Periodand Lead in Time First Sales LCand Last Sales LC are displayed Complete costs for predefined descriptions Add additional descriptions and costs as necessary Return to the appraisal click On line f1 delete any user defined sum entry and set Appendix option to y E E a In this Appendix the contingency provision is set at the bottom of the page The user can explicitly exclude the Appendices by entering n at the prompt label On line f2 a percentage of the Build Cost i e Unit Build Costs plus Site Costs can be entered 6 11 Technical Fees Lines gi g2 g Technical Fees g1 User Defined Sum Or use Fees Appendix y on sum of Technical Fees can be defined in one of three ways viz 1 as a user defined sum 2 summarised in an Appendix or 3 by percentage To enter as a user defined sum use the input box on line g1 and ignore all other entries in this section The user can explicitly exclude the Appendices by entering n at the promp
19. en You will be asked to continue with your input E g Entering 12 123 123 as a sales price on line a4 will bring up the following message Sales Price Input x Input validated For positive integers up to 1 000 000 AN Sums below 1 000 treated as a price per FE Continue Cancel If the input is correct to continue click Yes At the very top of the appraisal page there is also a validation section which will display user errors and the line numbers for key areas e g Unit Build Costs Stamp Duty Land Tax Cashflow etc This will only be visible if an error is detected ABC Limited Potential Errors in Un Buia Costs cow Landval Version 7 01 Feb 2004 12 2 Appraisal Summaries There are two Appraisal Summaries a Detailed Summary and an Outline Summary Click or as appropriate There is no user input on these 12 3 Notes Line aa A section to enter memorandum information is at the end of the appraisal line aa Click Notes 12 4 Undo To undo the last user input click Undo This can also be used to remove data imported from the Database 38 13 0 Help For on screen help click the Help button at the top of the page followed by To view a topic click View Topic To print the topic note click Print Topic For context specific help on the appraisal pages place the cursor on the line number cell at the left of the page e g b3 then click Help To return to the appraisal click Ret
20. ers Landval is supplied and supported by SDS Shelton Development Services Limited Tel 01483 278444 Close Defaults Email support amp sdslandval co uk Copyright Protected Unauthorised Copying of this Program is Illegal OO N 4 Click View Defaults 5 Each file has a number of pages where default values can be set The first one is called the Appraisal Defaults 4 2 1 Appraisal Default Values 1 Before values can be added or amended click Update Defaults 2 Ifthe values on this page have been password protected you will be required to enter the password 3 Proceed to enter values as prompted Only set values you want to use on a regular basis 4 Note that on this page the Stamp Duty Land Tax rates are set 4 2 2 Overheads Appendix 1 Click Overheads 2 Before values can be added or amended click Update Defaults 3 If the values on this page have been password protected you will be required to enter the password 4 Proceed to enter values as prompted Only set values you want to use on a regular basis 5 Add descriptions 6 Values against each description can be entered as follows Cost Per week Sum Per Plot Lump Sum If more than one entry type is used the costs will be added together 7 Overheads Contingency has special input options at the start 4 2 3 External Appendix 1 Click Externalsl 2 Before values can be added or amended click Update Defaults 3 If the values on this pag
21. erstructures per unit Line b6 shows the Total Unit Build Cost and the Cost per unit floor area is shown below I Tip For a faster but less sensitive Appraisal a gross cost of building including all on costs etc can be entered at Line b All Site Costs and other on costs Lines e to g can then be ignored Costs are split between Unit Build Cost and Site Costs because as the unit mix number of each type changes so the building cost will vary directly to the mix chosen Site costs infrastructure off site works etc however are less likely to change I Warning You can t specify these costs as a price floor area at line b as well as specific sums on lines b1 b2 You can combine entries on lines b3 b4 and b5 with line b 19 Note that if the database specified a contingency percentage for a particular housetype this value will be transferred to the appraisal as a sum not as a percentage 6 7 Housetype Performance Information Lines c1 to c6 assist the user to determine the optimum mix of units on the site b Unit Build Cost feet bi Substructure 1 25 000 27 000 23 500 250 000 b2 Superstructure 1 100 000 103 000 115 000 1 154 000 b3 Contingency eG ra t b4 Estra Substructure b5 Extra Superstructure be Total Unit Build Cost dealt Cite A ERAT TEE tal Optimising Value W Units Costs 187 500 210 300 Plotting density Unitstac het ae Optimising Value per ac 1 875 000 1 787 550 oo a fo ch JG SL
22. g 5 50 000 N al in 2 aaa ons an j Above IRRE a on These values will remain fixed in the appraisal but if legislative changes occur they can be amended by overwriting with revised values This action will be necessary for all appraisals where the original values become superseded As soon as new Stamp Duty Land Tax rates are effective ensure default file s are amended accordingly so that all new appraisals will use the correct values If an appraisal is started and no default values are used the lt Vone gt option is chosen on clicking Start on starting a new appraisal then the Stamp Duty page of the appraisal will be empty In this case at line q1 a warning message will be displayed and the user must therefore enter the values manually on the Stamp Duty page Click Stamp Duty and enter the correct values When calculating a residual net land value based on a GM it is possible that the incorrect Stamp Duty Land Tax rate will be used if the residual land value is close to the Stamp Duty Land Tax limits In this case a warning message will be displayed at line gi Replace the residual land value with a Specified Net LV at line r to correct the situation 37 12 0 Miscellaneous Topics 12 1 Validation Nearly all user input is checked on entry against a range of likely values If the value entered is outside the range a validation message will be displayed but in most cases the validation can be overridd
23. he Database for Viewing 1 From the Control Panel click Edit Database 2 The database file of house type information will be displayed Landval Database of Housetypes version DB 5 0 Ea Appraisals for Residential Developers amp Professionals Landval is supplied and supported by SDS Shelton Development Services Limited e Protect amp Clc Tel 01483 278444 Email support sdslandval co uk View Databases Copyright Protected 1 Houses 6 Unauthorised Copying of this Program is Illegal ri Flats 3 Three 8 Four 9 5 Five 10 3 To view a particular database click its number e g il One 12 Seven Eight Nine Ten No amendment can be made to the database at this stage but it is possible to view all the data and to print it 5 2 To Update the Database 1 Open the Database file 5 1 and select the required database 2 Click the button You may be prompted for a password 3 All cells available for input amendment are now unlocked Use the lt Tab gt or lt Arrow gt keys to move to any free line and enter the data 4 On completion click 5 Click confirm whether to save changes 6 Repeat steps 1 5 for other databases Changes and new entries on the database will be immediately available to all appraisals The data fields shown in green type are optional The database name and Dwelling Name Type description pink label are essential if data is to be successfully transferred to an Appraisal Cha
24. ick Save u a i I Tip Amend the description of the Appraisal Version cell in the header section of the appraisal to describe the new version being saved This entry will be appended to the file name 2 5 To Close an Appraisal 1 Return to the Home Page of the appraisal 2 Click Glose 3 If the file has not been previously saved then save it as described above otherwise confirm whether any changes that may have been made are to be saved Important Information If during the save procedure described above you cancel out of the Save dialog box you will be warned that the file has not been saved Clicking Ok to this message will result in any changes to the appraisal being lost 3 0 Colour Coding Navigation amp Screen Sizing 3 1 Cell Label and Data Entry Colours Cell descriptions or labels user input and those parts of the program under automatic control of the Landval application are identified by different colours as follows Labels Essential information data required by Landval from the user to obtain a meaningful land value Green Labels Indicates that user input is entirely optional Blue Labels Indicates that these can be overwritten by the user Blue Data Entries All entries by the user are shown in blue All existing blue data entries can be overwritten by the user Note that all default values and entries from the database are in blue indicating that they can be modified by the user Black Labels
25. into any of the foregoing cost categories Label descriptions can be redefined by the user Data entry is by user defined sum as shown above 6 15 Gross Development Value Line n The Gross Residual Development Value is calculated as follow Total Sales Value less Total Unit amp Site Costs Site Overheads Technical Fees Marketing Costs Gross Margin Land Abnormals Gross Residual Development Value 24 6 16 Existing Property Resale Lines p1 p2 and p3 pr Existing Property Resale Resale Price 125 000 pi Selling amp Legal Costs 1 2 00 Less Selling amp Legal Costs 2 500 po Refurbishment works 1 500 pS User Defined Sum Sub Total 4 000 Nett Contribution to LY 4 Acquisition Fees en Where a scheme includes a property which is to be sold on separately from the main development the contribution to land value that this sale makes can be shown 1 Enter the Resale Price Line p 2 Enter any Selling amp Legal Costs Line p1 3 Enter any costs for Refurbishment Works Line p2 4 Enter any other User Defined Sum Line p3 The sub total Resale Price less costs will be added as a Net Contribution to the LV The units total at the start of the appraisal will indicate where an existing property resale is included It will not be added to the development units total 6 17 Acquisition Fees Lines ql q5 4 Acquisition Fees q1 SOLT Stamp Duty 1 4 00 S0 based on Mett LW WAT 1 131
26. ll always trigger a refresh 34 m ei 31 9 0 Unit Profit Analysis Land Walue Land Abs amp Fees Appraisal Dwelling Sal Unit Build Column Ref Description 127 500 137 700 147 390 This feature allows an analysis of gross margin against each dwelling type based on the apportionment of plot costs Gross Margin in the appraisal is defined at the appraisal level i e on total sales value Unit mix should normally be determined by using dwelling types in the higher range of the Residual Optimising Value shown at Line cl i e these units will produce the highest residual land value and therefore give the user the best chance of being competitive Gross Margin at a dwelling type level can be shown if the user defines the method that costs should be apportioned to each unit To do this click There are 5 main cost headings of which 4 can have one of 6 apportionment options as follows Cost Headings Unit Build Cost This cost is automatically set to the total unit build cost as Line b6 Site Costs amp Overheads Technical Fees Marketing Land Value including Land Abnormals amp Acq Fees Apportionment Options By Sales Value By Floor Area By Average per Unit By Unit Build Costs By Plotting Density By Habitable Room Once these options have been selected from the drop down list box above each column heading the residual margin and will be shown This information is also shown on the Detailed S
27. low to show the payment of the VAT and its recovery 6 18 Residual Land Value Line r r RESIDUAL NETT LAND VALUE User Specified Nett LY 963 065 The Residual Net Land Value represents the price which can be afforded for the land based on the cost and value input whilst making the required Gross Margin When the user specifies a land value on this line User Specified Net LV the SDLT acquisition fees are recalculated and a Residual Gross Margin is shown on Line j To revert to the residual land value delete the specified land value r NETT SPECIFIED LAND VALUE User Specified Nett LY 1 000 000 000 000 26 7 0 Net Margin To calculate the Net Margin and Return on Capital Employed for the scheme it is necessary to carry out a cashflow Begin by entering a Cashflow Start at line s e g Jan 2004 This date will define the earliest event which can be entered in the cashflow The date can be past present or future Income and expenditure can start later than Month 1 but not earlier Development Sales 3 623 000 s Cashflow Start mem meer 4 Jan 2004 Gross Development Value 366 000 t1 Interest Negative Bal s 45 00 Land 4bnormals 11 000 t2 Interest Positive Bal s 3 00 Total Build Cost 1 852 554 Fr Eon iia Onis see ae Marketing Costs 103 630 13 Corporate Overheads T Total Costs 2 330 544 t4 Land Exch Deposit 1 10 007 100 000 Deposit Gross Margin Be4456 23 9 on Total Costs Gross Margin 634456 16 922 on Sales FirstEven
28. nges to the Database will not affect existing Appraisals 5 3 To Change the Name of a Database On delivery the ten databases in the file are named One Two Three etc To change this name 1 Select a database 2 Click 3 Change the Database Name at the top of the page 5 4 To Update an Appraisal with the latest Database Values Open the appraisal 2 2 On line al scroll to Column A Delete the name of the dwelling type Click From the Database choose the name of the deleted type from the appropriate database Click Enter into Appraisal All data from the Database will be overwritten into Column A Repeat steps 3 7 for Columns B C etc te SY oo NOTE Data from the Database will always be inserted into the column with the first empty Dwelling Type cell Any existing data in that column will be overwritten 5 5 To Change the Password 1 Open the Database file 5 1 2 Select a database 13 3 Click Ehange Password 4 Follow on screen instructions N B Databases must be protected separately as necessary and each can have a separate password 5 6 To Update Costs in the Database To update costs by a percentage e g for inflation use the automated procedure as follows Open the Database file 5 1 Select a database Click Follow on screen instructions iS When using this function note that the Contingency sum where set as a percentage will not be affected i e the same will be a
29. ow Tech Fees amp Abnormal Balance Fees Part Exchange in Period Negative Rate Land Abs Costs 6 00 D es Zn Apr 2008 gt May 2008 200 000 200 000 500 200 500 3 Jun 2008 1 003 201 503 4 Jul 2003 1 008 202 511 5 Aug 2008 2 089 672 2 089 672 6 237 2 298 420 6 Sep 2008 151 569 151 569 11 871 2 461 860 7 Oct 2008 290 859 290 859 13 036 2 765 755 8 Nov 2008 406 585 406 585 14 845 3 187 185 9 Dec 2008 489 373 489 373 17 159 3 693 717 10 Jan 2009 532 514 25 346 557 860 19 863 4 271 440 11 Feb 2009 532 514 25 346 557 860 22 752 4 852 052 12 Mar 2009 489 373 25 346 514 719 25 547 5 392 318 2 Options for Equity amp Spreading Equity percentages can be set for Land and Build amp Marketing This will determine the amount of equity which will be used to finance the scheme before resorting to borrowed money No interest rate or other cost is applied to this equity Build Costs can be automatically spread over a defined period either by an 5 curve technically a sine function or by equal amounts Sales income can be automatically spread over a defined period either by equal amounts or by a user defined plot selling sequence To create a plot selling sequence follow these steps Click Plot Sales Sequence To define a sales sequence for use in the cashflow first assign plot numbers to each dwelling type then define the sales sequence at the Timing of Existing Prop ty Resale Apr 2004 foot of the
30. page Appraisal Dwelling Sales Units Assign Plot Numbers to each Dwelling Type No of Units Column Ref Description Value E g 11 2 6 10 15 13 Assigned 315 000 346 000 244 500 Assign plot numbers to each of the dwelling types Add in the 7iming of Existing Property Resale if applicable Then define the actual selling sequence at the foot of the page User Defined Sales Sequence 3 4 7 6 1 2 5 3 11 E g 1 2 7 12 3 6 Click the been made Set the Sa es Spread option on the Cashflow to User Sequence to check no mistakes have 28 3 Cost amp Income Headings The appraisal costs nad income are summarised into the following headings Land Costs incl Land fees Land Abnormals amp Technical Fees External Development Standard Build Costs Abnormals and the Balance Marketing costs Fees and Part Exchange All Sales including Existing Property Resale 2 Values for all Cost Heads are under program control and are shown on the line Appraisal Total 3 Spreading of the values can either be carried out automatically by specifying start and end month numbers or by entering sums for each month For spreading options on build costs and sales income see above 4 If the Outstanding total is not showing zero an error message will be shown on the Appraisal indicating that the interest calculation is incorrect Ensure the Appraisal Total is fully entered and that the Outstanding total is zero 5 If u
31. pplied to the revised costs Separate can be used for Substructure amp Superstructure costs This procedure can only be undone by applying a reverse sign calculation NOTES Changing the details in the house type does not affect existing appraisals 14 6 0 Carrying Out an Appraisal 1 Click Start New on the Control Panel 2 Select the option Landval Version 710 or a later version 3 The Home page of the Appraisal will show after opening 6 1 Applying Defaults 4 Click the Start button on the Home Page to show a list of default file options 5 Select the appropriate file or choose lt None gt and click O K Apply Defaults Values from the chosen defaults file will be applied to this appraisal Default values on the Appraisal can be amended by the user or choose lt None gt lt None gt Cancel Warning When the lt Wone gt option is chosen the SDLT values will not be set These will have to be entered manually on the Stamp Duty page The values in the selected default file will be copied onto the appraisal These values can be changed on the appraisal without affecting the defaults file Similarly changing the value in the defaults file will not impact on the appraisal 6 2 Entering Data Only cells which are open for input are available to the user All other cells are locked Attempting to enter data into a locked cell will cause an error message to be shown Most cells which can accept da
32. protected separately and a different password can be used Move to the default value page to be protected Click l Follow on screen instructions Password protection will be effective only after the file has been saved from the Click If the page has been password protected you will be required to enter the password before the default values can be amended At the start of each default values page the Password Status will be displayed Even when the status is Not Set you must still click Update Defaults before being able to change any values NOTE Changing values in the default files will not affect existing appraisals 11 5 0 Updating Data in the Database The Database file contains 10 separate databases with space for 105 dwelling types in each These may be defined by the user as a particular Standard House Type or may refer simply to generic types The information held in each database is as follows Dwelling Name Type essential No of Beds Area ft2 Substructures Superstructures Contingency Total Cost Total Cost ft2 Plotting Density Unit Frontage The Contingency value can be entered either as a all values below 25 are treated as percentages or as a lump sum Contingency percentages are displayed in italics The calculated contingency sum generated by a value is displayed for information The Database is a separate file and is available to all Appraisals at all times 5 1 To Open t
33. s for one or all of the above profit criteria Note Before starting a sensitivity exercise ensure that the Cashflow has been fully completed with no errors Enter target profit margins at lines z1 z2 z3 or z4 The New Land Value will be displayed Certain rules are used for recalculating the revised land values which are explained by message boxes when using this feature 8 2 Land Value Sensitivity by Sales Values Set Target LV or SV Target GM Change Target LV 1 200 000 7 68 Target GM 25 0 8 43 33 This feature does not use the cashflow It reports the change required in Sales Values to achieve the 7arget LVor Target GM In the above example the current land value is 1 000 000 To achieve a land value of 1 200 000 sale prices would need to increase by 7 68 and this result assumes the current gross margin of 18 9 Alternatively to achieve a gross margin of 25 in place of the current 18 9 sales prices would have to increase by 8 43 In other words this increase in sales prices for the current land value of 1 000 000 would give a residual GM of 25 8 3 Effect on Land Value for Other Changes Lines z5 to z8 z Sensitivity Current Sales Land Values amp Profit Margins BER HER Sales Value 7 603 776 Set Target Newland Wale Specified Land Value 000 000 Margins Set Target LY or SY z1 Gross Margin on Development Sales 17 7 Target GM Change z2 Nett Margin on Development Sales T T Target LV
34. sing automatic spreading the cashflow spreads the values as follows Land Costs Land Exchange Deposit in the Specified Month Balance of all Land Costs in the Legal Completion Month All Other Cost Heads Build costs as set by the user equal amounts or S curve and equal amounts for marketing costs All Sales By equal amounts or user defined sequence as described above When the Overheads Appendix has been used an option will be given either to spread the income according to the dates shown on the Appendix or between a Start and End month entered on the cashflow The use of the Overheads Appendix is indicated near the start of the Cashflow and relevant dates month numbers are shown 29 7 2 Creating a Cashflow 1 Click Cashflow Start amp Int l gt Cashflow Start jamms 1 Jan 2004 Hi t2 tS bd So a Ye se Oe CUT 10 Interest Negative Bal s siis Interest Positive Bal s 3 00 A Eee ren Corporate Overheads 7 00 Land Exch Deposit 1 10 00 100 000 Deposit Enter a Cashflow Start at line s in the format mmm yyyy Enter the interest rate s at line t1 and t2 Enter Corporate Overheads at line t3 Enter an exchange deposit at line t4 Click Cashflow Set Land Equity and Build amp Marktg Equity options if appropriate Set options for Build Spread and Sales Spread complete the Plot Sales Sequence page first if using this option For automatic completion of the cashflow set the
35. t Jan t u CashFlow Interest 55 025 Last Ewent Jule v Operating Margin 539 471 16 5 on Sales Deu Period 19 months w Corporate Overheads 253 610 Build Start Mlay 04 x Mett Margin 345 821 35 on Sales Build Period if months First Sale Dec 014 y1 Return on Total Cap Emp pa JEA Cobe Coates Ce eSEE Last Sale lay 05 1 33 unitsfmonth v2 Ann Return on Equity Sales Period 6 months Tip To insert the current month which will remain fixed unless subsequently updated use a key combination of lt Ctrl semicolon gt The Cashflow uses the following values all of which can be set as defaults Interest Negative Bals line t1 Used for all negative balances Interest Positive Bal s ine t2 Used for all positive balances Corporate Overheads line t3 Not used in the Cashflow but is used to derive a Net Margin Exchange Deposit line t4 Optional calculation is based on the Net Land Value Equity injection can be defined on the Cashflow page and this will be used to finance the project before resorting to borrowing Interest in the month is calculated on the average cashflow balance at the start and end of the month The maximum cashflow period is 120 months 27 7 1 Features of the Cashflow 1 Click Cashflow Land Equity Build amp MarktgEquity Build Spread Sales Spread bc Land Costs Build Costs Marketing Costs Loan Interest g ide Unhide LV Acq Fees All Sales Total Cashflow l P eader r
36. t label To create an Appendix of Fees Click Fees Appendix Add descriptions and costs Return to the appraisal Technical Fees On line gi set the Appendix option to y nr To define technical fees by percentage enter the in line g2 The calculation is a of all building costs net of technical fees and this total is shown on line g2 6 12 Marketing Lines il and i2 i Marketing Costs Mo PX Units 6 auge Value 120 000 Hold Period 2 il User Defined 2 00 Or use Marketing Appendix y M 103 690 22 6 12 1 Part Exchange Units To allow for part exchange units in the Cashflow enter the No PX Units to be purchased the Avge Va ue per unit and the Ho d Period in months The Cashflow will automatically time these to fit in with the pattern of development sales 6 12 2 Marketing Costs Enter a combination of any or all of the following options at Line i1 Enter a percentage of Sales Value total on Line i1 To create an Appendix of Marketing Costs 1 Click on 2 Optionally complete the timing information at the start This will be used in the Cashflow 3 Add descriptions and costs 4 Return to the appraisal Marketing Costs 5 On line il set the Appendix option to y 6 13 Gross Margin Line j Gross Margin will normally be entered as a required gross profit margin from which a residual land value will be derived It is entered as a percentage of the sales total and is defined as follows Gross M
37. ta are highlighted by grey or black line border Where a percentage is required the use of the percentage key is not required In early versions of Excel a decimal may be required otherwise enter the appropriate number e g 5 for 5 To navigate directly to cells available for input use the lt Tab gt key This will move the cursor left to right line by line to each available cell Pressing lt Tab gt after input will register the entry and move to the next available cell Alternatively the lt Arrow gt or lt Enter Return gt keys can be used The lt Arrow gt keys are particularly useful for moving down the column of data for a particular unit type which is being appraised 15 To delete data before the lt Tab Enter Return gt key has been pressed use the lt Esc gt key The lt Backspace gt and lt Delete gt keys can be used in the normal way Data shown in blue can be overwritten without needing to delete it first Warning Do not use Excel s key shortcuts for copying pasting etc as this may cause unexpected errors and formatting problems 6 2 1 Data Validation All user data is validated on input Limits are set for most values and if the input lies outside the limit a warning will be displayed If the value is correct press the Yes button to accept it otherwise use the lt Esc gt key and re enter the correct value 6 3 General Scheme Details ABC Limited Landval Development Appraisal Landval Version 7 01 F
38. ummary 35 10 0 Printing All printing is done from a single button Printing Options Landval Printing Options Main Report Landval Appraisal Pages 1 amp 2 Page 1 Unit Details Costs amp Land Value Page 2 Nett Margin amp Sensitivity W Cashflow Appendices Ancillary Reports Externals Detailed Summary Abnormals Outline Summary lf Overheads w Plot Sales Sequence Technical Fees Unit Profit Analysis Marketing Printer Details Name HP LaserJet 3330 on Neto Select Alt Printer v Print in Black amp White Number of Copies 7 Any combination of pages and quantity can be printed Pages can be printed in colour if preferred Uncheck the Print in Black amp White option The user s printer as set in Personal Defaults see 4 1 will be shown in the Printer Details but other printers can be selected When printing Page One pages Two and Three will automatically be printed if any relevant data has been entered 36 11 0 Stamp Duty Land Tax Values and bands for Stamp Duty Land Tax are set in the default file s On starting a new appraisal Stamp Duty Land Tax values from the default file will be copied into the appraisal and can be viewed by clicking SDLT Stamp Duty The following stamp duty values are used in this appraisal To amend or set the values on this appraisal only e g as a result of legislative changes edit here as appropriate Zero up to 125 000 Stamp Duty Notiexessdina mun
39. urn to Appraisall at the top of the page Some cells on the appraisal have user help notes in a comment box Comments are identified by a small red triangle in the top right corner of the cell To view the comment place the mouse cursor over the red triangle a4 No of Bedrooms an Habitable Rooms Define sales price either as a6 Sales Price Input SUITE a price per unit or price per a Sales Value unit Floor area All values below 1 000 will be treated as a unit Floor b Unit Build Cost area 39
40. y overwriting data always give each dwelling type on the Appraisal a description of some kind on Line al 18 6 5 Sales Price This is essential data Enter the estimated sales price for each dwelling type The sales price must be entered either as a specific sum or as a price per unit floor area Make the entry on the line labelled Sa es Price Input Line a6 N B Entries below 10 000 will be read as a price per unit floor area Entries 10 000 and above will be treated as a specific price 6 6 Unit Build Cost Landval allows building costs to be split between Unit Build Cost and Site Costs Unit Build Cost refers to the cost of the superstructure and substructure of the unit together with any other costs such as specification adjustments etc which will be directly affected by the chosen mix of dwelling types Unit Build Cost can be entered by a cost per unit floor area or as separate sums for Substructure and superstructure Line b is used for entering a cost per unit floor area which can also be a cost for all build costs so that site costs can be ignored Lines b1 b2 are for specifying an actual Substructure Cost and Superstructure Cost per unit Line b3 is for adding a Contingency This can be entered either as a specific sum or as a percentage Entries below 25 will be treated as percentages e g 2 0 2 Percentage values are shown in italics Lines b4 and b5 are for adding extra costs to either Substructures or Sup
41. z3 Nett Margin on Total Costs 9 0 Target GM z4 Ann Return on Cap Employed 30 1 NB Stamp Duty limits may give rise to a slightly inaccurate New Land Value for certain Set Returns z5 Effect on LV for Changes in Gross Margin step change in GM 1 a b z6 Effect on LY for Changes in Sales Values 1 3 step change in Sales 1 Cc 2 056 221 2 168 956 3 d 343 oof 1 830 751 z7 Effect on LY for Changes in Total Build Costs 3 4 step change in Build 1 e 963 1 927 116 1 890 746 1 854 377 2 3 f 036 2 072 591 tM co Combined Effect on LY for all the Above atc te There are 4 reports in this section Each reports what the land value would be for a given percentage change in Gross Margin line z5 Sales Values line z6 and Total Build Costs line z7 At Line z8 the combined results of the preceding changes are shown For the effect on land value for gross margin changes set the input step change in GM by selecting a value from the drop down box The report to the right shows the revised land values starting with the current GM value and stepping up and down from this for up to 5 steps in total Changes in Sales Prices and Total Build Costs follow a similar procedure After changes have been made to the appraisal the results in this section will no longer be valid and will not be displayed To refresh the report click Sensitivity at the top of the screen Changes in the Step Va ue wi
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