MAIN ASPECTS OF CARRYING OUT THE EVALUATION OF THE RIGHT TO CONCLUDE CONTRACTS OF LEASE OF REAL ESTATE OBJECTS UNDER GOVERNMENT OR MUNICIPAL PROPERTY

Abstract

The interpretation of the leasehold estate market value was given. Several criteria for assessing the right of use of real estate objects under lease terms were added and specified, and the nature of the relationship between the leasehold estate value of an asset and the market value of an asset rent was analyzed. Using in appraisal practice of the formulated definitions and the proved arguments regarding the legal and economic component of the right to use property on lease terms will allow to determine appraisal object correctly and to choose the right methodology, in particular when assessing the right to enter into a lease agreement for real estate objects in state or public ownership.

Keywords

• lease rate valuation
• leasehold estate valuation
• the legal essence of lease
• the economic essence of lease