Abstract
This chapter is about valuing reversionary investments. A reversionary investment is where a property is let at less than full market rental but where there is a rent review or a reletting to the full market rental. This is a common occurrence where rental values have risen since the grant of the lease or rent review or where the lessee has paid a premium on entry. There are two different approaches to valuing reversionary investments: the traditional term and reversion method based on a block income approach, and the hardcore method based on a layered income approach.
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References
Darlow, C. (ed.) (1988). Valuation and Development Appraisal, Estates Gazette, London, Chapter 2.
Leach, W. A. (1978). Hardcore Method of Valuation, Estates Gazette, London, May 6, p. 475.
Trott, A. (ed.) (1986). ‘Property Valuation Methods’, Research Report, Royal Institution of Chartered Surveyors/Polytechnic of the South Bank, July.
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© 1991 David Isaac and Terry Steley
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Isaac, D., Steley, T. (1991). Hardcore Method. In: Property Valuation Techniques. Macmillan Building and Surveying Series. Palgrave, London. https://doi.org/10.1007/978-1-349-21573-7_6
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DOI: https://doi.org/10.1007/978-1-349-21573-7_6
Publisher Name: Palgrave, London
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