The negative leasehold

Mackmin, David

doi:10.1108/14635789510099445

Cited by 3 publications

(2 citation statements)

References 2 publications

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“…These conditions relate to the demand and supply, governed by the location, building quality, size, form of occupational lease, etc. which are unaffected by the legal interest being valued (Gane, 1995 ;Mackmin, 1995). Hence the annual rental growth rate of 7.02% is used in the leasehold valuation.…”

Section: The Linkage Between Commercial Property Markets National Economy and Secured Lending Valuationsmentioning

confidence: 99%

Valuation of Urban Commercial Properties in Nigeria for Secured Lending: Issues and Developments

Udoekanem

2018

Int J. of BES

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Valuation for secured lending is required when an interest in real property is used as security for a loan. The outcome of such valuation will help the lending institution to achieve commercial prudence in lending as well as avoid taking undue risk. This paper examines the issues and developments in the valuation of urban commercial properties in Nigeria for secured lending purposes. It argues that due to the volatile nature of the Nigerian economy, coupled with the linkage between the economy and commercial property markets, the maximum amount of loan to be granted by lenders in the country using interest in commercial property as collateral should be based on the Mortgage Lending Value (MLV) and not the Market Value (MV) of the property, although the market value should also be reported in the valuation. A case study is used to demonstrate the valuation. It further contends that since the inputs for determining the MLV of a commercial property must be derived from long-term trends in the property and financial markets, it is more stable than MV when used to determine the maximum amount of mortgage loan to be granted by a lender. It concludes that the stability of the MLV makes it more reliable than the MV in achieving commercial prudence in mortgage lending as it fits into the long-term nature of mortgage loan repayment.

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Section: The Linkage Between Commercial Property Markets National Economy and Secured Lending Valuationsmentioning

confidence: 99%

Valuation of Urban Commercial Properties in Nigeria for Secured Lending: Issues and Developments

Udoekanem

2018

Int J. of BES

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“…As stated, there are major limitations in valuation capacity to manage this model at present. Leasehold valuation models have been an ongoing source of contention in the UK (e.g., Baum & Crosby, 1988;Gane, 1995;Mackmin, 1995;Trott, 1980Trott, , 1986 because of: the adoption of low accumulative rates in the dual rate approach; remunerative rates that relate to the differing implied growth in freeholds; confusion of taxation adjustments; diffi culties in adjusting for variable profi t rents; the complexity of gearing; and, the major challenges in comparative analysis of leasehold sales. Moreover, managing the interest during a lease renewal will require a good understanding of leasehold valuation, particularly as the level of ownership in the landlord's interest moves fi rmly towards the full ownership of land and improvements.…”

Section: Spike Boydellmentioning

confidence: 99%

Finding Hybrid Solutions to the Financial Management of Customary Land from a Pacific Perspective

Boydell

2008

AJIE

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Within contemporary society, customary land is at the nexus of culture and commercialisation. Tasked with facilitating market-based returns on customary land whilst promoting equitable inter and intra-generational sharing of returns, this paper reports a solutions-based research project that investigated and tested a range of hybrid models in the Pacific context. The challenges are diverse, in many cases confronted by the Western approach, which identifies property and ownership as something to address in a businesslike way. Accepting the notion of ongoing Indigenous guardianship of land as sacrosanct and that de Soto's privatisation model is an unacceptable simplification, this paper offers innovative regional examples of customary land administration/management arrangements in encouraging equitable use of customary land by both members and non-members of land “owning” groups. Land is the foundation for the lives and cultures of Indigenous peoples the world over. Without access to and rights over their land and natural resources, Indigenous peoples' distinct cultures, and the possibility of determining their own development and future, become eroded (Jensen, 2004, p. 4).

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Urban ground leases: a cross-country comparison

Pope,

Young

2024

Journal of Property Research

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The negative leasehold

Cited by 3 publications

References 2 publications

Valuation of Urban Commercial Properties in Nigeria for Secured Lending: Issues and Developments

Valuation of Urban Commercial Properties in Nigeria for Secured Lending: Issues and Developments

Finding Hybrid Solutions to the Financial Management of Customary Land from a Pacific Perspective

Urban ground leases: a cross-country comparison

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