Valuation of Leasehold Properties

[Scott Campbell]

I have heard a lot of negatives about buying leasehold properties, but there are many in my area, so I'm sure some people are buying them. My question is, how do you accurately calculate the value of these properties? I think that the value would fall to zero at the year the lease ends, but how do you figure it out for x years before then? Just figure out yearly depreciation and subtract from total value? How is total value determined? I'm sure a new leasehold property is still valued less than the comparable fee simple property, right?   Also, is it common for a lease to get renewed? In what cases are they renewed or terminated? What happens to the title holder if the lease ends while he/she owns it? I probably should have made a list of these questions, but thanks for reading anyway!