Frequently Asked Questions

Clear, expert answers on Financial Viability Assessments (FVAs), Section 106 negotiations, and Benchmark Land Values from RICS Registered Valuers.

RICS Regulated Firm

MRICS & RICS Registered Valuers

Confidential Site Assessments

Financial Viability Assessments (FVAs)

  • A viability assessment is typically instructed once the scheme design is fixed, prior to submission of the planning application. The assessment will establish an appropriate Site Value Benchmark, which is typically the Existing Use Value of the site plus a suitable landowner premium (EUV+). We then assess the Gross Development Value (GDV) of the proposed scheme minus development costs, including developer return, to establish the Residual Land Value (RLV) of the proposed scheme. If the Residual Land Value is lower than the Site Value Benchmark, the scheme is technically unviable in development viability terms and unable to contribute towards affordable housing and/or S106 contributions.

  • Typically, the Site Value Benchmark looks at the Existing Use Value plus a premium (EUV+). The Existing Use Value refers to the value of the asset at today’s date in the adopted planning use. It refers to the Market Value of the asset on the special assumption reflecting the current use of the property only and disregarding any prospect of development other than for continuation/expansion of the current use. The most recent viability guidance states that a landowner premium over and above EUV is considered appropriate to reflect the fact that sites will not be encouraged to come forward for residential-led re-development if vendors can only sell them at pure EUV levels.

  • No. As RICS Registered Valuers, we will price your scheme and assess the local market for comparable evidence to inform the Gross Development Value (GDV).

  • The submitted viability assessment is typically reviewed by an independent assessor appointed by the council to test the assumptions adopted. If there are areas of disagreement, we lead negotiations on your behalf to reach an agreed, commercially viable position.

Section 106 Agreements & Legal Negotiations

  • Yes. As part of our service, we review the Section 106 Agreement prior to engrossment to ensure that it accurately reflects what has been agreed during the viability negotiation.

  • Yes. If shifting market conditions, build-cost inflation, or unexpected site constraints render an existing permission unviable, options remain. We specialise in analysing active liabilities and preparing formal applications (such as Section 73 or Section 106A variations) to negotiate a reduction in legacy obligations or commuted sum payments.

  • A Section 106 Agreement is a legal agreement between a Property Developer and a Local Planning Authority.

  • A person/ developer bound by a S106 Agreement can seek to have the obligations varied or discharged within 5 years.

  • Yes, but it will be resisted by the Local Planning Authority.

  • Dependent on the individual/developers financial position and would be explored on a scheme by scheme basis.

Have a Question About Your Specific Site?

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Whether you are preparing a new planning submission or looking to vary an existing S106 agreement, we assess your development economics against local council land benchmarks to unlock deliverable margins.