Investor tool · Leasehold valuation
Leasehold remaining-term value calculator.
Most Bali leaseholds trade on nominal value. The real number is remaining-term-adjusted value – what a buyer will actually pay at your planned exit year, once market-standard compression kicks in. This tool runs the calculation properly, including area-adjusted extension costs.
- 6corridors with extension data
- 2022–2026disclosed transactions
- ±$50/m²extension-cost variance band
Remaining-term analysis
Years left at exit
12
of original 30
Linear value at exit
$270,000
simple proportional
Market-adjusted value at exit
$225,720
16% off linear
Extension cost estimate
$70,400
~$320/sqm × 220 sqm
What this means
Value trajectory from 2026 to exit
- Linear (theoretical)
- Market-adjusted
At your 2034 exit the lease carries 12 years of its original 30-year term. A straight-line model marks that at $270,000, but disclosed transactions show the market pays roughly 16% less once the buyer pool thins below 15 years remaining – about $225,720. That is a 50% step down from today’s $450,000 mark, which is why pricing against nominal value leaves money on the table.
Exit scenarios
- Sell at planned exit (2034): Expect buyer offers near $225,720. Loss from current: $224,280 (50%).
- Extend lease before exit: Budget ~$70,400 in extension payments. If you extend, value recovers toward original + extension cost. Break-even only if holding period after extension ≥ 3 years.
- Sell today: Market value today is approximately $450,000 – the current-year mark on the market-adjusted curve. Net of any transfer costs (BPHTB ~5%, notaris ~1%), realized cash ~$423,000.
How the compression curve is built
Linear value assumes a leasehold loses value in straight-line proportion to remaining term. That model is wrong, and most sellers price against it. Real Bali transaction data shows accelerating discount once remaining term drops below 15 years, then sharply below 10 years, because the buyer pool shrinks: institutional and high-net-worth buyers prefer 20+ year horizons; flippers wait for 5-year-or-less distress pricing. The compression factors in this calculator are derived from disclosed sales 2022–2026 in Knight Frank and JLL transaction reports plus our own observation, calibrated per-area for extension cost ranges.
When extension makes financial sense
Extension before exit is positive-NPV when the remaining holding period after extension covers at least the break-even years shown in the result panel. Below that threshold, the extension cost is paid by you and captured by the next buyer. Read the PMA vs leasehold framework for whether converting to a PT PMA structure on extension adds value beyond the simple lease renewal.
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Not legal or financial advice. Values shown are editorial modelling based on our internal compression curves for Bali leasehold (derived from Knight Frank and JLL transaction observation). Actual buyer behaviour varies by sub-corridor, individual negotiation, and regulatory environment at exit. Area-specific extension cost ranges are indicative only – confirm with a registered notaris before acting on any transaction. See our full methodology for source tiers.