a) You have been asked to value two identical properties except that one is let to a tenant of national standing on a 10 FRI lease with a tenant break option after 5 years and the other property is unlet. What are the issues that need to be considered when preparing valuations of both properties? (25% of marks)

b) Explain why a leasehold interest may have value? (25% of marks)

c) Outline the two direct methods of valuation, detailing their limitations. (50% of marks)