How Do You Value Land For Leasing?

[Stockbear]

I need some help! My family owns lands which have been leased from them for over 30 years by a major corporation. Owing to greed on the part of some family members, and the corporation wanting to take undue advantage of the naivety of some members of the family, we are being cheated out of substantial revenue from the land.

The problem is how does one calculate a ten year lease? What is the criteria for such calculations?

In case you were wondering, ordinarily, I do not involve myself in such matters, but as it involves my mum and she wants me involved, so here I am.

All suggestions welcomed.

[c kenneths]

If its a large corporation, i advice you look for a good lawyer to check out the fine print of the agreement and an estate valuer to check out what the deal is really worth, on my own i can do the valuation, but you will need a valuer to calculate the land size, the type of activity to be carried out on the land and other details, only then can they know how much to pay.

[babatunde akinyemi]

Quite a long time Stockbear.

On the lease first go around to find out the rent currently paid for similar land/building in the area. Then fix a rate of rent that is graduated upward, say at 20% increment every two years.