Grant of Leasehold

In Uganda, the valuation of leasehold properties is essential for various purposes, including taxation, sale, and development. Here are some key points about grant of leasehold valuation in Uganda: 

1. Understanding Leasehold Property 

• Definition: A leasehold property is one where an individual or entity holds rights to use land for a specified period, usually under a lease agreement with the landowner. 

• Duration: Leasehold terms can vary, typically ranging from 49 to 99 years. 

2. Valuation Process 

• Market Comparison: Valuers often use comparable sales data from similar leasehold properties to establish market value. 

• Income Approach: This method evaluates the potential income generated from the property, which is crucial for commercial leaseholds. 

• Cost Approach: This involves assessing the cost to replace or reproduce the property minus depreciation. 

3. Legal Framework 

• The Land Act and the Land (Amendment) Act govern leasehold arrangements, outlining the rights and obligations of leaseholders. 

• Local authorities may have additional regulations that affect valuation. 

4. Factors Affecting Valuation 

• Location: Proximity to amenities and infrastructure significantly impacts value. 

• Lease Terms: The duration remaining on the lease and any specific conditions can influence valuation. 

• Market Conditions: Economic factors and market trends in the area are also crucial. 

5. Professional Appraisal 

• Engaging a certified valuer is recommended for accurate assessments, especially for significant transactions or developments. 

6. Tax Implications 

• Leasehold properties may be subject to specific taxes, including property tax, which can affect valuation. 

If you’re involved in a leasehold transaction or development in Uganda, consider consulting with local real estate experts or valuers to navigate the complexities effectively.