Resources & Tools

CJ Property Investment Value Calculator

Value commercial and residential investment property the way valuers, lenders and investors do.

Disclaimer. This tool provides an indicative valuation only. It does not constitute Red Book valuation, lending or investment advice. Outputs depend on income quality, lease structure, asset condition and prevailing market yields.

Step 1

Property setup

Property name

Property type

Yield basis

The headline NIY/GIY label follows this toggle. The gap between Gross and Net Initial Yield at portfolio level comes from purchaser's costs below.

Purchaser's costs

All-in fees (incl. VAT)

Standard valuation shorthand — applied as a flat % of Market Value, on top of SDLT.

Step 2

Tenancies & income

Unit 1·Under-rented

Unit name

Area (sq ft)

sq ft

Status

Auto valuation method

Term & Reversion

Term & Reversion — passing rent for 5 years, then steps to ERV (no void).

Passing rent

£/yr

ERV

£/yr

First lease event

"None" is hidden — passing differs from ERV, so the unit must revert at some point.

Years to event

yrs

Will tenant renew?

Term yield

Reversion yield

Total passing

£60,000

Total ERV

£65,000

WAULT

5.0 yrs

Step 3

Capital expenditure (optional)

Market Value

£863k

Net of purchaser's costs

Net Initial Yield

6.58%

Passing ÷ gross price (MV + purchaser's costs) — institutional convention.

Gross Initial Yield

6.95%

Passing ÷ Market Value (net of purchaser's costs).

Equivalent Yield

6.95%

Average yield over term + reversion

Reversionary Yield

7.13%

ERV ÷ gross price — if fully let at ERV today.

WAULT

5.0 yrs

Moderate

£ per sq ft

£345

2,500 sq ft total

Running Yield (Y1)

6.58%

Year-1 net income ÷ gross price.

Capital value waterfall

Yield sensitivity

Base term 6.50% · Base reversion 7.00%

Holds ERV, lease events, void/rent-free and purchaser's costs constant. Flexes term and reversion yields independently around the portfolio ERV-weighted base. Δ shown vs base/base Market Value.

Rev ↓ / Term →	-25 bps	-10 bps	base bps	+10 bps	+25 bps
-25 bps	£895k +3.72% NIY 6.34%	£894k +3.61% NIY 6.35%	£894k +3.54% NIY 6.36%	£893k +3.46% NIY 6.36%	£892k +3.35% NIY 6.37%
-10 bps	£877k +1.57% NIY 6.48%	£876k +1.46% NIY 6.49%	£875k +1.38% NIY 6.49%	£875k +1.31% NIY 6.50%	£874k +1.20% NIY 6.50%
base bps	£865k +0.18% NIY 6.57%	£864k +0.07% NIY 6.58%	£863k base NIY 6.58%	£863k -0.07% NIY 6.59%	£862k -0.18% NIY 6.60%
+10 bps	£853k -1.16% NIY 6.66%	£852k -1.27% NIY 6.67%	£852k -1.34% NIY 6.67%	£851k -1.41% NIY 6.68%	£850k -1.52% NIY 6.69%
+25 bps	£836k -3.10% NIY 6.80%	£836k -3.21% NIY 6.80%	£835k -3.28% NIY 6.81%	£834k -3.35% NIY 6.81%	£833k -3.46% NIY 6.82%

Yield comparison

10-year income projection

Per-unit valuation

Unit	Passing	ERV	Term	Reversion	Costs (PV)	Total	Method
Unit 1	£60,000	£65,000	£249,341	£662,059	—	£911,399	T & R

Risk indicators

Vacant units

Over-rented exposure

0.00%

Reverts within 2 yrs

0.00%

Largest unit share

100.00%

CJ investment insights

Equivalent yield of 6.95% is 37bps wider than NIY — reversionary upside is being captured over the term.
Purchaser's costs of £48,198 (5.3% of gross) reduce Market Value materially — SDLT alone is £32,660.

Detailed calculation breakdown

Click to expand — full surveyor-grade workings for every figure above.

▸

Per-unit valuations▸

Unit — Unit 1▸

Inputs

Statusoccupied

Passing rent£60,000 / yr

ERV£65,000 / yr

Lease eventexpiry

Tenant decisionrenew

Years to event5

Term yield6.500%

Reversion yield7.000%

Void months6

Rent-free months3

Reletting fee10% of ERV

Void cost50% of ERV

Method & result

MethodTerm & Reversion

Rent positionunder-rented

Total value£911,399

Term YP = (1 − (1+y)^−n) / y = (1 − (1+0.0650)^−5) / 0.0650 = 4.155679 Term value = passing × Term YP = £60,000 × 4.155679 = £249,341

Valuation convention: void is deducted as a cost (below), not deferred — only rent-free defers the reversion.

Reversion YP (perp) = 1 / y = 1 / 0.0700 = 14.2857 PV factor = 1 / (1+y)^(n + rent-free) = 1 / (1+0.0700)^(5 + 0.250) = 0.712986 Reversion = ERV × YP × PV = £65,000 × 14.2857 × 0.712986 = £662,059

Total = Term + Reversion − Costs = £249,341 + £662,059 − £0 = £911,399

Portfolio aggregation▸

Sum of unit values

Unit 1£911,399

Σ Sum of unit values£911,399

ERV-weighted reversion yield (used to discount capex) = Σ(yᵢ × ERVᵢ) / Σ ERVᵢ = 7.0000%

Capex PV£0 (no items)

Gross capital value = Σ unit values − Capex PV = £911,399 − £0 = £911,399

Market value (net of purchaser's costs)▸

Solve for MV by bisection: MV + SDLT(MV) + 1.80% × MV = £911,399 → MV = £863,202

SDLT(£32,660)

Acquisition fees (1.8% incl. VAT)(£15,538)

Σ Purchaser's costs£48,198

Check: MV + costs = £863,202 + £48,198 = £911,399 Gross capital value = £911,399

Yields▸

Net Initial Yield = passing ÷ gross-of-costs price (MV + purchaser's costs) = £60,000 ÷ £911,399 = 6.583%

Gross Initial Yield = passing ÷ Market Value (net of costs) = £60,000 ÷ £863,202 = 6.951%

Reversionary yield = ERV ÷ gross-of-costs price = £65,000 ÷ £911,399 = 7.132%

Running yield = Year-1 net income ÷ gross-of-costs price = £60,000 ÷ £911,399 = 6.583%

Equivalent yield: solved numerically so the PV of the projected cashflow + perpetual reversion equals the gross capital value. Result: 6.949%

WAULT▸

Unit 1 — 5 yrs × ERV £65,000£325,000

WAULT = Σ(yearsToEvent × ERV) / Σ ERV = £325,000 ÷ £65,000 = 5.00 yrs