Real Estate & Mortgage
Ground Lease Valuation
Estimate the present value of ground rent payments and the reversion value of leased land.
Your inputs
Change any value to update the result instantly.
Estimated ground lease value
9,33,463.2926
PV of ground rent payments
7,99,902.5306
PV of reversion value
1,33,560.762
Remaining term
40 years
Formula and working
Value = PV(annual ground rent, discount rate, term) + PV(reversion value at end of term)
- 1
Collect the inputs
Annual ground rent = 60,000; Remaining lease term (years) = 40 years; Discount rate = 7 %; Estimated reversion (land) value at term end = 2,000,000
- 2
Apply the formula
Value = PV(annual ground rent, discount rate, term) + PV(reversion value at end of term)
- 3
Result
Estimated ground lease value = 933,463.2926
Frequently asked questions
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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