SPORTELLI – V – CADOGAN
publication date: Nov 21, 2006
Leasehold Reform Act valuations are traditionally carried out by the term and reversion method. For the term, the future income stream of the ground rent is capitalised and for the reversion, the vacant possession value at the valuation date is discounted by an annual compound interest rate, called the deferment rate, for the number of years from the valuation date to the termination date of the existing lease.
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