Collateral for Loans: Property owners can use the leased fee interest as collateral for financing or refinancing. An accurate appraisal helps lenders determine the property's loan-to-value (LTV) ratio, which is essential for approving loans and establishing interest rates.

Better Loan Terms: If the leased fee interest has strong rental income and stable tenants, an appraisal can demonstrate the property's value to lenders, potentially leading to better loan terms, such as lower interest rates or higher borrowing limits.

Renegotiating Lease Terms: If the lease is up for renewal or renegotiation, an appraisal of the leased fee interest helps property owners understand whether current rents are in line with market conditions. This knowledge can be used to negotiate rent increases or other favorable terms.

Evaluating Lease Buyouts: Sometimes tenants seek to buy out a lease early or renegotiate for a lump sum payment. An appraisal can determine the financial impact of an early termination or buyout, ensuring the property owner receives fair compensation.

Reversionary Interest Valuation: When the lease expires, the property owner regains full control of the property. An appraisal helps estimate the future reversionary value, giving the owner insight into how the property’s value might change once it is no longer encumbered by the lease.

Exit Planning: For property owners planning an exit strategy, such as selling the property or developing it differently after the lease ends, an appraisal provides essential data on what the property could be worth once the lease has expired.