What is a lease agreement and what is the property being leased? Let’s look at the definition.

In addition to market value, there are also other values ​​such as:

Leasehold value:

It refers to the value arising from the ownership of the right to occupy and use an asset that is granted under contractual terms and conditions, which are in accordance with the terms of the contract and have a definite end date, in exchange for an advance payment of rent or a periodic rent. The value of the leasehold right will be positive when the market rent is higher than the contractual rent, and in cases where the contractual rent is higher than the market rent, the value of the leasehold right may be negative or zero.

Leasehold Value:

The value of the legal or proprietary interest of the owner in a property that has been leased out to the lessee to occupy and enjoy the property.

Compulsory Sale Value:

A value that is not market value as defined in the full sense, but is the value at which the seller would sell the property within a shorter period than would be expected, taking into account the characteristics of the property and the market conditions, or may be the result of a relationship between a reluctant seller and one or more buyers who are willing to buy at the seller’s expense.

Continuing Use Value or Changed Use Value

The appraiser must have an understanding of the value of the property, whether the value indicated is the value of the property in its current condition or if it is subject to a change in use.