Valuation of lease rights
Your lease rights are a key asset affecting the sustainability and success of your business. “PKF Valuation of Property” offers a lease rights valuation service to help you make informed decisions, minimize risk and effectively manage your investments. In this section, we detail how valuation of lease rights can support your business objectives.
What Is Valuation of Lease Rights?
Valuation of lease rights is the process of determining the market value of the right to use leased property, whether land plots, commercial property, or other assets. This includes analyzing lease terms, current market rates, and the condition of the leased property. The valuation helps assess how favorable the lease terms are and the prospects for renewal or modification.
Why Is Valuation of Lease Rights Necessary?
Valuation of lease rights is essential for assessing the economic viability of lease agreements and making informed management decisions. It is important when setting rental rates, renewing or revising lease terms, or in cases of business or property sales. Valuation can also be needed for calculating compensation in cases of land or property buyouts and for accurate accounting of lease rights in financial statements.
Features of Valuation of Lease Rights in Kazakhstan
In Kazakhstan, valuation of lease rights requires consideration of specific factors that set it apart from other types of valuation. A key aspect is the legal status of land and property, as differences in the legal status of land plots can significantly impact the value of lease rights. Long-term leases, particularly for commercial and agricultural land, require valuation that takes into account potential legislative and economic changes over the lease term. Regional development is also an important factor; infrastructure growth and economic activity in a given region can greatly influence the market value of lease rights. These specifics make lease rights valuation in Kazakhstan a complex but crucial process for making sound decisions.
Advantages of Working with PKF
As part of the international PKF Global network, PKF Valuation of Property provides clients with access to advanced global practices and expertise. Our global resources and analytical tools allow us to consider both local and international factors when valuing lease rights. This is especially valuable for companies managing lease assets across different countries. Working with us, you receive reliable and objective data that supports sound decision-making in lease management.
When Is Valuation of Lease Rights Needed?
Valuation of lease rights may be necessary in the following situations:
- Setting Rental Rates: To determine fair rental value when entering or renewing a lease agreement.
- Business Sale: To assess the value of lease rights as part of the company’s assets.
- Company Reorganization or Liquidation: For asset distribution among stakeholders or creditors.
- Attracting Investors: To value lease rights as collateral or assets.
- Taxation and Reporting: For accurate accounting of lease rights in financial statements.
What Documents Are Needed for Valuation of Lease Rights?
The list of required documents below is not exhaustive; additional documents may be requested if needed.
- Property passport or geodetic plan of the land plot.
- Certificate of designation of non-residential premises or land category issued when formalizing lease/ownership rights.
- Annex to the certificate indicating the types of authorized activities for the object under valuation.
- Statement or certificate of restrictions on the land plot or non-residential premises, such as the presence of telecommunications or gas lines on leased areas (can be requested from the relevant government authority).
- Statements confirming the lease rate or paid land tax.
- If available, the real estate lease agreement.
Which Banks Accept Our Valuation of Lease Rights Reports?
Our valuation of lease rights reports are accepted by all banks in Kazakhstan (Halyk Bank, Bereke Bank, Forte Bank, Jusan Bank, NurBank, Eurasian Bank, Bank Center Credit, RBK, VTB Bank) as well as major financial institutions such as the Development Bank of Kazakhstan, the European Bank for Reconstruction and Development, the Eurasian Development Bank, and BV Management.
Valuation of lease rights is a crucial tool for managing lease assets and making strategic decisions. PKF Valuation of Property is ready to provide you with professional services based on deep market understanding and international standards. Submit a callback request, and we will contact you to discuss your needs and initiate productive collaboration.