The process of valuation of freehold apartment blocks will depend on a number of factors and conditions.

In simplistic terms it could be (ground rent per unit x number of units) x yield.

A number of specific factors come into play though not least the geographical area you are in,having an impact on the yield, the structure of the leases and of crucial importance, their term and their indexation.

Other factors which purchasers may take a view on include further value creation such as additional floors in the future or loft conversions etc. Some specialist purchasers will look at the economics of the service charges as well.

However note the latest government white paper and the potential of an increased level of scrutiny emerging down the path from the funding community who may cap lending on certain freehold structures depending on certain thresholds and ratios.

The value may also depend on whether you are selling or refinancing – again, lots of variables and certainly not simple.

A very specialised subject and one which we have on the agenda for our mastermind group in a couple of months time.