inclusive of the entire fee simple estate
. (259) Regarding the
[u]pon partial or total condemnation, the lessee has the right to prosecute claims for injury to its interest and that any condemnation award is to be divided fairly and equitably between the fee simple estate
and the leasehold estate.
"The application of the cost approach produces a value indication of the fee simple estate
of a property at market rent and stabilized occupancy.
(97) Alternatively, it is possible for the registered holder of a Nisga'a Nation entitlement or a Nisga'a Village entitlement to be offered, or to request, that the entitlement be transitioned to a fee simple estate
A leased fee encumbered with a long-term, below-market, fixed rental rate may be worth less than an unencumbered fee simple estate
The fee simple estate
is the largest interest in land recognized by the common law and includes broad rights of the owner to alienation and exploitation.
It is correct that a lease never increases the market value of real property rights to the fee simple estate
and that any potential value increment in excess of a fee simple estate
is attributable to the particular lease contract.
A lease never increases the market value of real property rights to the fee simple estate
. Any potential value increment in excess of a fee simple estate
is attributable to the particular lease contract, and even though the rights may legally "run with the land" they constitute contract rather than real property rights.
An 8% overall capitalization rate was estimated to convert the net operating income into a value estimate of $7,235,000 for the hypothetical fee simple estate
via the income approach.
Because the income from new leasing of space is riskier and must be discounted at a higher rate, the rent differential in Figure 2 must be discounted at a lower rate so that the average of these two rates is about the same as the rate that would be applied to the fee simple estate
. Again the conclusion is that the rate must be lower for the rent loss than for the fee simple estate
For example, it points out that properties that are encumbered by a lease are the sales of the leased fee, not the fee simple estate
, and he argues that this makes the sales comparison approach less reliable.
A third option selected by the authors measures the impact that market income shortfalls have on the fee simple estate