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Deferment rate information


In property valuation, a deferment rate is a discount rate applied to the current price of a property in order to assess the present value of the right to vacant possession of a residential property at the end of a leasehold to which the freehold is subject.[1]

The rate is a key component of the calculation used to determine the cost of leasehold enfranchisement.[2]

  1. ^ Law Commission (England and Wales) CP 238 p.xii and section 14.47.See also Prudential Regulation Authority CP 13/18 p.19 footnote 2, also Property Valuation Techniques, David Isaac, John O'Leary, Macmillan International Higher Education, 14 Jun 2013, section 11.4
  2. ^ Deferment rates in leasehold enfranchisement, Cluttons, deferment rate revisited, Tanfield Chambers

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