ABSTRACT
Premiums A PREMIUM is a capital sum paid by an ingoing tenant for the right to occupy/ possess leasehold premises. There are other definitions which do not concern this element of valuation. In addition the tenant will also be paying the rent which applies on an annual basis to the premises as set out in the lease. There is some debate as to the relevance of a premium in attempting to determine the current market value. Valuers for a tenant at a rent review, when premium evidence is put forward by a landlord, will attempt to argue that the premium evidence has no relevance whatsoever as it was merely paid for the GOODWILL which existed to the premises and also it accounts for the value of fixtures and fittings left by the previous tenant.
