Databank counter-cyclical ground rents
Cook, Lucien
Databank counter-cyclical ground rents - 2009 - Property Week 75(49) 4 December 2009, 66(1) .
The valuation of ground rent investment portfolios is a complex issue. Savills' analysis of sales at auction shows that freeholds with leases spanning 100-120 years sell for 1%-2% of the underlying capital value of the property. The values of freeholds with only 80 years unexpired increase significantly and values increase again at around 60 years. Graph tracks lease terms and values.
United Kingdom--
Databank counter-cyclical ground rents - 2009 - Property Week 75(49) 4 December 2009, 66(1) .
The valuation of ground rent investment portfolios is a complex issue. Savills' analysis of sales at auction shows that freeholds with leases spanning 100-120 years sell for 1%-2% of the underlying capital value of the property. The values of freeholds with only 80 years unexpired increase significantly and values increase again at around 60 years. Graph tracks lease terms and values.
United Kingdom--