Leasehold calculator
A leasehold price only means something once you divide it by the years you actually get. Put in the asking price and the remaining term and this works out the effective cost per year, what an uncertain extension does to that figure, and how it compares with simply renting an equivalent home.
What leasehold means here
A lease is a contract giving you the use of a property for a fixed number of years over somebody else’s underlying title. When the term ends, the right ends — along with, in most cases, whatever you built on it — unless the deed already grants an extension on terms you can point to. “The owner has said we can extend” is not a term; a written extension clause with a stated price and mechanism is.
Which titles a particular person may hold, and how a lease should be structured for them, is a legal question that depends on the individual and is not something a calculator can answer. Take it to a licensed notary/PPAT that you appointed yourself — never one introduced by the seller or the agent — and have them read the deed and run the land office search before any money moves.
The lease
The one-off amount asked for the remaining term.
Read this off the deed, not off the listing summary.
Staff, maintenance, utilities, land and building tax, insurance.
What renting a similar home in the same area would cost per year.
If the lease is extended
An extension you have not signed is a possibility, not an asset. Set how likely you genuinely think it is and the risk-adjusted figure below reflects that.
What the deed says the extension will cost, if it says anything.
Additional years the extension would grant.
If the deed contains no extension clause at all, set this to zero. A verbal assurance from the landowner is worth exactly that.
Remaining value against rent paid
The lease is drawn on a straight line to zero — the conservative assumption, and the one a future buyer will start from. The dashed line is what you would have paid in rent over the same period.
What it works out at
Effective cost per year
Rp 217M
Price plus running costs, over the term
Risk-adjusted per year
Rp 197M
Assuming a 60% chance of extension
Total over the term
Rp 4.78B
22 years
Rent over the same years
Rp 7.04B
At the comparable rent you entered
Cheaper per year than renting
The lease works out Rp 103M a year below the rent you entered.
Against rent alone, the up-front lease price is recovered after about 12.2 years.
Running costs are 41% of the effective annual cost. On short leases the price dominates; on long ones the running costs do.
Indicative only. This is not legal, tax or investment advice.