California Real Estate Q&A Discussion Forum
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Creative Real Estate Financing
presented by

Tax, SDIRAs & Cost Segregation
presented by

1031 Exchanges
presented by

Real Estate Classifieds
Reviews & Feedback
Updated about 2 months ago on .
How is the value of a condo ground lease determined for a buyout?
Our condo is on a ground lease that expires in 35 years. Our HOA is considering buying the lease so that the entire condo will become fee simple. How is the value of the lease determined for a buyout? The current monthly payments from all units will remain constant for 35 years, but obviously the value of those payments will be worth far less 35 years from now due to inflation. Perhaps 1/3 to 1/4 of current value. What is the most common formula to determine a fair price for a lease buyout?