Restaurant valuation worked examples

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Capital value of a leasehold restaurant in a neighbourhood area Turnover (excluding VAT) Food £158,000     Beverage £128,000       £286,000   Gross profit   x 65%       £185,900   Adjusted expenses (excluding rent) at 35% of turnover   £100,100   Net profit before rent (30%)   £85,800   Less current rental value   £30,000       £55,800   YP 16 years @ 25%/3% (tax 40p)   3.006 £167,735 Profit rent   £5,000   YP 2 years @ 20%/3% (tax 40p)   0.979 £4,895 Value excluding flat (60% of T/O)   say £172,600 Same restaurant with a residential...