Leased Fee Interest?
Hi guys, in of the appraisals I was reading, I noticed that the appraiser had only given the leased fee interest of the property? I thought leased fee is the opposite of fee simple which is absolute ownership of the land and the improvements on top of it. I first thought leased fee meant you own the building and not the land, so there is essentially a ground lease, but after googling I realize that might be leasehold interest and leased fee is just a property encumbered by a lease. So, basically any non owner occupied property that does not have a ground lease? Seems a little silly to me. And why would an appraiser only give us the leased fee interest value and not a fee simple value? Thank you!!!
I don't know if this is the right way to think about it. Think of leased fee as a property being leased/"encumbered" (investment property and fee simple is an owner occupying the property and can do whatever improvements they want. Leasehold is if you have the rights of the lease and it expires as the current term/outside term of the lease expires.
https://www.investopedia.com/terms/b/bundle-of-rights.asp
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