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The result is expressed in years. A closely related measure is the WAULT to break , which sums the individual rents to their first break, the point where the tenants can legally leave their lease. The basic definition is also known as WAULT to expiry to make the distinction clear.
For example, a property may have a value of £300,000 if it has a 99 year lease but only be worth 85% of that value if the lease has only 70 years remaining. If the leaseholder with 70 years unexpired is entitled to extend the lease to 99 years or more, they have the opportunity to increase the value of their interest in the property by £45,000.
Property investment calculator is a term used to define an application that provides fundamental financial analysis underpinning the purchase, ownership, management, rental and/or sale of real estate for profit. Property investment calculators are typically driven by mathematical finance models and converted into source code. Key concepts that ...
Real estate appreciation refers to the gradual increase in the value of an owned property over time. This increase in value can occur due to various reasons, such as shifts in the real estate ...
It’s been a wild real estate ride over the last few years. After a red-hot market characterized by very low interest rates and frenzied bidding wars, mortgage rates increased to their highest ...
In this case the inducement might be 3 months of free rent every other year. To calculate the NER in this case, the present value of all future cash flows is summed, and then divided by the number of periods, and then converted to the same units as the face rent. In the example above, in a five-year lease on a 10,000 square foot area, the ...
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