Tenants in possession of long term leases upon properties have a legal interest in these properties. They rent, occupy and use them over long periods of time. A tenant having a Leasehold Interest in a property may or may not have a material interest in the value of such a property. In cases where a lease is for an extended period of time, and when contract rental rates are lower than market rates, the tenant is said to have a material interest in the value of the property. Conversely, if the lease is of short duration, say 2 years, and the rent is at market, the tenant will likely have no material interest in the value of the property. This is in spite of the fact that he or she has a legal interest in the property. These issues can be complicated to sort out and the services of an appraiser experienced in such appraisals should be engaged to perform Leasehold Interest Appraisals.
Our firm is experienced and very qualified to perform Leasehold Interest Appraisals. We offer this service nationwide and are available for consultation upon request.