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Databank counter-cyclical ground rents

By: Contributor(s): Language: English Series: Property Week ; 75(49) 4 December 2009, 66(1)Publication details: 2009Subject(s): Summary: 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.
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Item type Current library Call number Copy number Status Barcode
Journal article London Journal article L149122 (Browse shelf(Opens below)) 1 Available 149122-1001

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.