Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Property 8 A head leasehold interest in supermarket. The rent paid to the freeholder under FRI terms is 185,000pa. The Market Rent is said to

image text in transcribed

Property 8 A head leasehold interest in supermarket. The rent paid to the freeholder under FRI terms is 185,000pa. The Market Rent is said to be 225,000pa. The lease term is 35 years with 7 year reviews granted on the 12th December 2005 with The all risks yield for this type of investment is said to be 6%. The property is sub-let to Tesburys (a leading retailer). They wish to purchase the head leasehold interest and your client would like to make an offer to purchase the freehold interest. Undertake the two calculations. Property 9 Value the freehold, leasehold and sub-leasehold interests in an industrial building based upon the following information: Lease granted on FRI terms the 16 June 2015 for 20 years at a rent of 75,000pa Sub-Lease granted on FRI terms the 16 June 2019 for 15 years less one day at a rent of 90,000 pa Recent evidence suggests that the Market Rent is 105,000pa The freehold investment yield is said to 6.0% Property 8 A head leasehold interest in supermarket. The rent paid to the freeholder under FRI terms is 185,000pa. The Market Rent is said to be 225,000pa. The lease term is 35 years with 7 year reviews granted on the 12th December 2005 with The all risks yield for this type of investment is said to be 6%. The property is sub-let to Tesburys (a leading retailer). They wish to purchase the head leasehold interest and your client would like to make an offer to purchase the freehold interest. Undertake the two calculations. Property 9 Value the freehold, leasehold and sub-leasehold interests in an industrial building based upon the following information: Lease granted on FRI terms the 16 June 2015 for 20 years at a rent of 75,000pa Sub-Lease granted on FRI terms the 16 June 2019 for 15 years less one day at a rent of 90,000 pa Recent evidence suggests that the Market Rent is 105,000pa The freehold investment yield is said to 6.0%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Energy Audit Of Building Systems An Engineering Approach

Authors: Moncef Krarti

1st Edition

0849395879, 978-0849395871

More Books

Students also viewed these Accounting questions

Question

1. Explain how business strategy affects HR strategy.

Answered: 1 week ago