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The question is as follows and Plz give the step-by-step results Ofce A is a 2000 square metre ofce let on a 10 year lease

The question is as follows and Plz give the step-by-step results

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Ofce A is a 2000 square metre ofce let on a 10 year lease at a rent of 35,000 per annum on internal repairing and insuring terms. Ofce B Is a 2500 square metre factory on the same block let for 2 years on PR! terms at a rack rent of 50,000 per annum. Assuming a yield of 9% for freehold interest in property let on FRI terms, value the freehold and leasehold interests in Office A. Also assume costs equal 10% for freehold interest calculation. YP increases 2%, AS? I: 3% and Tax :- 40%

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