Valuation

Leasehold valuation is more a science than an art, but it is not a precise science. There are many contributory factors, and many calculations. Some are known at the outset (such as the outstanding term of the lease and the ground rent), but most will require assumptions and estimations (such as the current and theoretical future market values of the freehold and existing lease, and hypothetical investment yields). That’s why the leaseholder and freeholder will usually come up with different figures.

The key to calculating a fair value on the leaseholder’s behalf, that will stand up to negotiation with the freeholder and to possible judicial test by tribunal, is to make sure every factor is included and given due weight.

When you engage us, we will leave no stone unturned to seek and gather evidence that will secure the best possible deal for you.

Report

We will then provide you, as swiftly as possible, with a comprehensive, easy-to-follow report that includes:

  • our recommended Initial Offer to your landlord
  • our estimate of your landlord’s likely counter-offer
  • our estimate of the target premium range to settle within
  • all the comparable evidence and calculations we have used

Throughout the process we will provide progress reports to keep you up to date.

Leasehold Valuation jargon-buster

To illustrate the complexity and begin to explain some of the jargon, the following factors must each be considered in most cases.