1. A high street shop, 11 Queen Street comprises 85 square metres in terms of zone A (ITZA). The existing lease is for 10 years with 5 yearly upward-only rent reviews on internal repair and insuring (IRI) terms. There are 8 years remaining on the lease and the passing rent is 95,000 per annum. 13 Queen Street has 9 metres frontage by 18 metres depth. It was let three months ago for 113,400 per annum on a 15-year internal repair and insuring (IRI) lease with 5 yearly upward-only rent reviews. 15 Queen Street was let on full repair and insuring (FRI) terms at the same time as number 13 at a rent of 90,700 per annum and the freehold sold two weeks ago for 1,350,000 (excluding costs).

(a) Value the leasehold interest in 11 Queen Street. (70% of marks)

(b) Briefly compare three of common leases used in commercial properties and discuss the differences. (30% of marks)

Answer rating: 100% (QA)

a Valuation of 11 Queen Street leasehold interest Zone A area of 11 Queen Street is 85 sqm Passing r... View the full answer