1. 16 Appraising Partial Interests
Condominiums
Planned unit developments
Fannie Mae Form 1073:
Individual Condominium Unit
Appraisal Report

2. Partial Interests Time-share projects Estate interest or right of use
Manufactured homes
Other forms of ownership
Tenants in common (TICs)
Joint tenants

3. Lease Interests Leased fee Leasehold estate Ground lease
Sandwich lease

4. Lease Provisions Gross lease Net lease Triple-net lease
Percentage lease
Excess rent and deficit rent

5. Lease Provisions (cont.)
Escalator clause
Renewal options
Tenant improvements
Tax-stop clause
Expense-stop clause
Purchase option

6. Leased Fee and Leasehold Valuations
Leased fee interest
Value of leased fee interest is found by applying annuity factor to NOI to find present worth of net income, then applying reversion factor to estimated land value, and adding the two figures

7. Leased Fee and Leasehold Valuations
Leasehold interest
Value of leasehold interest is found by subtracting scheduled rent from market rent to find excess rent, then discounting present worth of excess rent