Section 67 Leasehold Valuation

• Library: Condemnation Practice 2009

In measuring the value of a leasehold interest, typically in a motion to apportion the commissioners’ award, the accepted method is called the bonus value. Essentially, to obtain compensation, the tenant must prove that the tenant’s actual rent is below the market rent. The leading case is Land Clearance for Redevelopment Corp. v. Doernhoefer, 389 S.W.2d 780 (Mo. 1965). The bonus method apportions to the fee owner the entire award less any bonus value that the lessee may be able to prove in the lease. “The bonus value, sometimes referred to as the leasehold savings or...