Deferment Rate Leasehold Enfranchisement | Ground Rent Valuation

deferment rate leasehold enfranchisement Generally a 'deferment rate' may be defined as "the rate of return that is used to defer or ‘discount’ a future value to arrive at the present value". For example, if a property is estimated to have a capital value (at today’s prices) of £1,000,000 in five years, then its present value may be assessed as £1,000,000 × {1/[(1 + 0.08)5]} = £567,400, where 0.08 or 8% is the deferment rate, i.e. the price is ‘adjusted’ or ‘deferred’ at a compound rate 8% per … [Read more...]