Alternative Use Value (AUV) as benchmark land value

Although in most cases the benchmark land value should be used for the purpose of viability assessment, there may be a few occasions where an Alternative Use Value (AUV) should be considered instead. AUV refers to the value of land for uses other than its existing use. Reviewing alternative uses is very much part of the process of assessing the market value of land and it is not unusual to consider a range of scenarios. Where an alternative use can be readily identified as generating a higher value, the value for this alternative use would be accepted as the land value, i.e. the option with the highest value will be input into a viability assessment.