Property Valuation

What is a 'leasehold estate' valuation in South Carolina?

AValuing the property at lease expiration
BValuing the tenant's interest when contract rent is below market rent✓ Correct
CValuing the lease document itself
DThe assessed value of leased properties

Explanation

A leasehold estate (tenant's interest) has value when the tenant is paying below-market rent. The tenant's interest = (Market Rent − Contract Rent) capitalized over the remaining lease term.

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