Valuing a Reversion

Income multiples, lease lengths and the reversionary value

A ground rent reversion is really two separate things sold as one, and this book teaches you to value both. It shows where to find the data you need for free, and why the ground rent written on a lease is only a headline that must be tested before you rely on it. You will learn the costs that sit behind a supposedly pure income, and how to stress-test a reversion when the usual buy-to-let risks of voids and repairs barely apply. A complete worked example brings the method together on one deal, covering income multiples, lease lengths and the reversionary value, and the final chapter sets out a method you can repeat and the legal questions it cannot answer. The book is clear that the maths is not hard but the judgement around it is, especially on a first purchase with a real title, a real lease and reforms that are still changing. Next in this series: “Leasehold Reform and Its Impact”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void, the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.