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OVERAGE ESTIMATION
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Key Variables that can be applied to the Update Basis -
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1. Sale value of the Freehold to be included. Total was £2.6m consisting of £300.00 for residential
Base Case =
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area, £2.2m commerical. However, commercial excl in base as rental is grossed up
 300,000 300,000
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2. Increase in "build" costs between Sch 4 appraisal and build date
10%10%
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3. Decrease in Interest due to rates lower than 6.25% in Sch 4
50%50%
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Overage due following entry of above 3 variables
£3,877,298 3,877,298
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----------Schedule 4 of CSA----------
x
-Update based on Notes on the right-
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Sales
x
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Private flats
 8,197,629 x20,757,590n1
Per Land Registry
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Car Park spaces
 300,000 xn1
Included in Private Flats assumed
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Affordable Flats
 3,256,000 x 3,600,000 n2
Per 2010 Findon Accounts lodged with TASE
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Commercial/Medical pa
 34,272 x 162,000 n2
Per 2010 Findon Accounts lodged with TASE
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Grossed up at
7.50%x7.50%
when Sch 4 was produced the scheme diff in
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Capital Value (A)
 456,960 x 2,160,000
incl in that what is now a med centre was
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Less Unpaid rent 6m (B)
 17,136 x 81,000
to be a restaurant. Sch 4 never updated
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Less Purchasers costs at 5.75%
25,290 x 119,543
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Above as shown (C)
 24,847 x 24,847
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Total A-B-C 414,977 x 2,054,153
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Sale of Freehold if included
x 300,000 v1
See Key Variable 1. above
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 -------------x -------------
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Total Sales Value
 12,168,606 x 26,711,743
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 -------------x -------------
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Costs
x
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Site Value
 320,000 x 325,500 n3
Total cost incl inc in Sup agt was £651k
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Site Stamp Duty
3% 9,600 x3% 9,765
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Site Legal Fees
1% 3,200 x1% 3,255
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Site Agency Fees
2% 6,400 x2% 6,510
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Site Costs
 339,200 x 345,030
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Site payment to Camden
 320,000 x 325,500
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Relocation of Travellers Costs
 200,000 x 200,000
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Initial Payments
 520,000 x 525,500
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A3 Commerical Bar Shell
 129,350 x 129,350
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Private Sector Residential
 3,909,360 x 3,909,360
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Affordable housing
 1,837,935 x 1,837,935
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Car Spaces
 475,200 x 475,200
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Plant and Refuse
 82,800 x 82,800
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External Works
 643,500 x 643,500
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Demolition and Site Security
 55,040 x 55,040
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Contingency
5% 356,659 x5% 356,659
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Project Management
2% 142,664 x2% 142,664
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Architect
5% 356,659 x5% 356,659
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Engineer
2% 142,664 x2% 142,664
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Quantity Surveyor
2% 142,664 x2% 142,664
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Plann Consultant
 25,000 x 25,000
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Landscape Architect
 25,000 x 25,000
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Traffic Engineer
 15,000 x 15,000
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Conservation Area Advisor
 15,000 x 15,000
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Fees to date
 25,000 x 25,000
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Increase in construction costs
x 837,949 v2
See Key Variable 2. Above
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Build Costs
 8,379,495 x 9,217,444
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Letting Agent's Fees
10.00% 3,427 x10.00% 16,200
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Letting Legal Fees
 1,500 x 1,500
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Inv. Sale Agents Fees
1.50% 6,482 x1.50% 6,482
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Inv. Sale Legal Fees
 5,000 x 5,000
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Dir. Sale Agent's Fees
2.00% 235,073 x2.00% 487,152
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Dir. Sale Legal Fees
 45,000 x 45,000
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Disposal Fees
 296,482 x 561,334
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Promotion
 100,000 x 100,000
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Legal Fees for Joint Venture
 15,000 x 15,000
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End Payments
 115,000 x 115,000
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Interest
 531,250 x 265,625 v3
See Key Variable 3. above
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 -------------x -------------
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Total Costs
 10,181,426 x 11,029,933
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 -------------x -------------
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Net profit
 1,987,180 x 15,681,810
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==========x==========
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Profit as %age of costs
 19.52 x 142.18
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Overage calculation per "The Second Schedule" of the Conditional Sales Agt
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Total Costs above
 10,181,426 x 11,029,933
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25% of Total Costs
 2,545,357 x 2,757,483
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Net Profit above
 1,987,180 x 15,681,810
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"Development Excess" - Net Profit less 25% of costs
 - x 12,924,327
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Overage being 30% of Development Excess
 - x£3,877,298
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Notes
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n1
Sale values for the 36 private flats, incl car spaces, are taken from HM Land Registry
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n2
The developer reported in his 2010 accounts provided to the Telaviv Stock Exchange
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(TASE) that the affordable flats had been sold for £3.6m and medical area rented
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for £162,000
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n3
The price paid fpr Camden's land was increased by £5,500 in a Sup. Sale Agreement
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