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Commercial Property Financial Formula - Help!!!

Discussion in 'Real Estate' started by Jasminepoppi, 5th Feb, 2008.

  1. Jasminepoppi

    Jasminepoppi New Member

    5th Feb, 2008

    I need help working out a formula that will allow me to calculate the amount of financial contributions a developer should make towards developing further Housing.

    So, part of the formula is like this, for example:

    increase in floorspace (ie. 1000 m2) over 75m2 (75m2 is the average size of a unit) x 50 (which is the policy amount of 50% that we expect from developers) over 100 x £134,000 (which is just the average build cost for a 75m2 unit). This then calculates the amount the developer should pay.

    Thats how the formulae looks at the moment.

    But I want to amend it, so that at the beginning the increase in the floorspace is divided by 2 (to reflect the fact that not all the increase in floorspace will be used for Housing, only half will be) and then it needs to be reflected that the Housing element should be divided in 2 to show that the Affordable Housing is separated from the market housing and then the rest of the formulae kicks in.

    I have tried to work this out, but my figures don't add up.

    Can anybody help?

    Many Thanks