KNOWLEDGE BANK FROM B KANAGA SABAPATHY SIR
LET KNOWLEDGE SPREAD
Spend your lockdown period usefully.
PART-15 26.05.2021
CHOOSE THE RIGHT ANSWER – YES / NO
141. The rate of capitalization in leasehold depends on the money market from time to time. Is it right?.….. Yes/No
142. The capital value can be determined from the net income and the percentage return required on investment. Is it right? .….. Yes/No
143. The rate of capitalization for a leasehold interest, in general, is 1% more than the freehold interest. Is it right? .….. Yes/No
144. A token amount or a nominal rent is not called an “acknowledgment rent”. Is it right? .….. Yes/No
145. A short period of lease enables the lessee to recover his capital invested in the improvement of the land. Is it right? .….. Yes/No
146. Ground rent is well secured when improvement is not done on the land given on lease. Is it right? .….. Yes/No
147. In the case of sub-lease, if the proposed rent is higher than the original (head) rent, then, it is known as improved rent. Is it right? .….. Yes/No
148. The valuation procedure for a freehold property and a leasehold property with a perpetual lease is not same. Is it right? .….. Yes/No
149. The provisions or terms of the lease would decide the share value of the lessor and lessee. Is it right? .….. Yes/No
150. When the lessor’s interest is valued, the dual-rate table is compulsory to be used. Is it right? .….. Yes/No
ANSWERS KEYS:
Part 15
141 – Yes
142 – Yes
143 – Yes
144 – No
145 – No
146 – No
147 – Yes
148 – Yes
149 – Yes
150 – No
With best wishes,