Research > Ground Lease Valuation and Analysis - Second Edition

Ground Lease Valuation and Analysis - Second Edition

1 September 2023

The Valuers’ Education and Integrity Foundation (VEIF) is proud to present the Second Edition of the research paper: Ground Lease Valuation and Analysis, authored by Mark McNamara

Ground Lease Valuation and Analysis - Second Edition


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.