Overview

This is the second edition of this research paper.  It is over 3 years since the first edition was published in 2020.  The first edition had the stated aim of providing a valuation model for partial interest’s valuers can use for accurate and rational valuation estimates.

The second edition includes new material, including: an expanded chapter 8 – incorporating the application of the Lincoln Approach in context of terminating ground leases; and new chapters 10 to 13: the conversion of a leasehold sale to freehold applying the Lincoln Approach; analysing ground rent percentages; adjusting ground rent percentages for different rent review patterns, and consideration of the ‘indifference’ model for determining ground rent percentages for both perpetually renewable and terminating leases.  This means a revision of some conclusions of the research from the first edition.

The heart of the research remains the critical examination of leasehold valuation models in New Zealand.