Leased fee vs leasehold appraisal
[PDF File]4465.1 CHG CHAPTER 3. GROUND LEASES
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e. Leasehold Estate. The interest of the lessee (user or tenant) under a ground lease for a term of years is called a leasehold estate. When the term of the lease expires, all rights to possession and use revert back to the lessor/fee simple owner and the leasehold estate terminates. f. The Leased Fee. The interest of the lessor/fee simple owner
[PDF File]THE APPRAISAL OF REAL ESTATE - Real Estate Division
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and lessee each obtain a partial interest, the leased fee and the leasehold interest. Leased Fee Interests The lessor’s or landlord’s interest in the property - the right in a lease contract to grant the lessee use of the property for a certain period of time.
[PDF File]Valuing the Leased Fee Simple Estate: The Answer for Ad ...
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Valuing the Leased Fee Simple Estate: The Answer for Ad Valorem Taxation Issues BY THOMAS W. HAMILTON, Ph.D., CRE, MAI The real estate appraisal profession has for years discussed various types of ownership interests in real property that can be valued. Of these, the leased fee and the fee simple have drawn signifi cant attention as to their
[PDF File]FEE SIMPLE… - Appraisal Institute
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vs. leased fee cap rates. Korpacz Realty Advisors, Inc. What we know •There is no such thing as fee simple and leased fee cap rates in the real estate investment marketplace for income-generating real estate. •There are cap rates that reflect a going-in NOI that may be at, below, or above
[PDF File]Issues in Comparing Capitalization Rates for Leased Fee ...
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Fee Simple vs. Leased Fee NOI Fee simple NOI usually differs from leased fee NOI because rents for a fee simple estate are assumed to be a “market rent” for new leases from tenants who can lease space unencumbered by existing leases.1 Leased fee NOI could be higher or lower than fee simple NOI.
Fee simple vs leased fee in valuation - by Steve Hurlbut
Fee simple vs leased fee in valuation - by Steve Hurlbut March 09, 2018 - Appraisal & Consulting Steve Hurlbut Liberty Bank Recently, I had a question from a regulator as …
[PDF File]INCOME APPROACH - Commercial Complete Index
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Leased Fee Income Approach Example INCOME APPROACH The Income Approach considers the return on Investment and is similar to the method that investors typically use to make their investment decisions. It is most directly applicable to income producing property because the expectation of income is the primary motivating factor
[PDF File]Fannie Mae Guidelines on the Valuation of a Property ...
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Fannie Mae Guidelines on the Valuation of a Property Subject to a Leasehold Interest and/or Community Land Trust (CLT) Leasehold Interest Leasehold interest is the right to the use and occupancy of real property by the existence of a lease agreement. The lessee (tenant or renter) enjoys these rights
[PDF File]Lease Fee vs. Fee Simple Property Rights Valuation Issues ...
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Leased Fee Interest ¾An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the lessee are specified by contract terms contained within the lease. Leasehold Interest …
[PDF File]VALUATION OF LEASEHOLD INTERESTS
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highlights the most common form of appraisal assignment for income-producing properties. In this chapter, we turn our attention to valuing the leasehold interests specifically. When investors buy and sell leased commercial real estate, what is occurring is the transfer of a bundle of leasehold interests. These
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