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Appraisal

Appraisal of lease payment

Market lease value (lease price) means amount of lease payment that can be paid for leasing of real estate on the date of appraisal under typical market conditions.    

Lease of the federal or municipal assets.
Appraisal of lease rate or lease payment when the subject of lease is the assets (including movable assets) owned by the Russian Federation or its constituent entities or municipal entities is mandatory as set forth by Article 8 of the law «On Appraisal Activities in the Russian Federation».

Lease payment for the use is determined based on the annual market lease payment specified by appraiser when determining the market value of an asset subject to lease.

One of the distinctive features of this type of appraisal is that the report on appraisal of the lease payment market value must be subject to expert review by the relevant governmental authorities to confirm its compliance with the laws and standards concerning appraisal activities.

Reports on appraisal of lease payment prepared by the experts of our firm comply with the law «On Appraisal Activities in the Russian Federation» and all the applicable standards concerning appraisal activities, and will be accepted by the governmental experts for the purposes of particular transactions on leasing of corresponding assets.

UKey-Appraisal is accredited by and cooperated for many years with the following organizations:  

·         The Agency for Perm Krai Assets Management;

·         The Property Matters  Department, Perm;

·         The Federal Agency for Federal Assets Management in Perm Krai;

·         The Russian Federal Property Fund, Moscow (appraisal of seized, movable abandoned assets and other assets converting into national property);

·         The Russian Federal Property Fund, Moscow (appraisal of released immovable military assets including ships, boats and aircrafts).

Lease of office real estate, retail real estate, warehouses and manufacturing premises
Most of the companies lease office / retail real estate and warehouses. The lease payments may form significant part of the budget. Any increase in lease payment will result in decrease of profit yielding. Any increase in lease payment may result in conflict between a lessor and a lessee. Independent appraisal of lease payment will help to find a solution beneficial and acceptable for both parties.

Moreover, the independent appraisal of lease may be used as an instrument for determination of lease right assignment and for granting of loans or other kinds of financial support.

 

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