Leased Fee Adjustment in real estate appraisal is the reduction in market value of a leased fee estate caused by current leases at below-market rent, resulting in a positive value for the leasehold estate held by the lessee enjoying the rent savings.
A leasehold estate refers to a tenant’s right to occupy and use real estate for a defined period as stipulated in a lease agreement. Leasehold estates provide tenants with significant rights over the property during the lease term.
A proprietary lease in a cooperative apartment building is an agreement granted by the corporation to its stockholders, which entitles them to rent or use a specific apartment unit upon meeting the conditions outlined.
