Updated October 2026 · Fraser Bond
Development · Land value
Your property's value to a developer
Residualvaluation
Planningpotential
Costsbuild & fees
Calculatorland value
In short: Developers usually work backwards. They estimate the value of what they could build (the gross development value), then subtract build costs, fees, finance, planning obligations such as CIL and Section 106 and their required profit, often 15 to 20% of GDV. What's left is the most they can pay for the site. Planning potential is the biggest driver, so a large garden, corner plot or ageing commercial building can be worth more to a developer than to a home buyer. Fraser Bond can assess development potential and market sites to developers.
Option agreements
A developer pays for the right to buy later if planning is granted.
Conditional contracts
Sale completes only once planning is secured.
Overage
You share in extra value created later.
Outright sale
Simpler, usually at a lower price.
Residual land value
Residual land value–
A simplified appraisal. Professional appraisals add timing, finance and risk.
Frequently asked questions
Keep exploring
DEVELOPMENT GUIDE
New-Build Houses in London: A Buyer's GuideDEVELOPMENT GUIDE
New-Build Developments in West London: A Buyer's GuideDEVELOPMENT GUIDE
How to Become a Property Developer: A Practical Guide
New-Build Houses in London: A Buyer's GuideDEVELOPMENT GUIDE
New-Build Developments in West London: A Buyer's GuideDEVELOPMENT GUIDE
How to Become a Property Developer: A Practical Guide
Browse every guide in The London Property Investor's Hub → · London area guides →
Handy tools
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Development advice
Ask us about end values and letting new homes.
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Will a developer pay more than a buyer?
Only if the site has development potential.
Can Fraser Bond market my site?
Yes, to developers and investors.
Got a site with potential?
Talk to our team or get a free valuation.
Speak to our teamGet a free valuation
