VALUATION OF…
Usufruct
A limited real right entitling the holder to use and enjoy another’s property and its fruits, valued on the discounted value of that right of use.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
A usufruct is valued as the present value of the right to use and enjoy the property (and, where applicable, derive income from it) for its duration — typically the usufructuary’s lifetime or a fixed term — calculated as the difference between the full ownership value and the bare dominium value.
The Big Five framework applies to the underlying property to establish the income or value the usufructuary is entitled to enjoy; the usufruct value itself is then derived by discounting that entitlement over the expected duration of the right, having regard to the usufructuary’s age (for a lifelong right) or the remaining term (for a fixed-period right), using an appropriate discount rate and standard mortality tables where relevant.
As with bare dominium, direct market evidence of usufruct sales is scarce; the calculated value should be cross-checked against the full ownership value less the actuarially-derived bare dominium value, ensuring the two components reconcile to the whole.
Caselaw
Case law, regulatory rulings and expert-determination disputes relevant to valuing this asset class. Each entry cites its source and summarises the practice implication for valuers — this is not investment, financial, or legal advice.
The Evidence Log is for VDH Members
The Evidence Log for Usufruct — sourced sales, disposals and rentals with Valuer’s Lens commentary — is included in VDH Membership: from R125/month for SACPVP candidates and students, R399/month standard. All prices include VAT.
The methodology and case law on this page remain free to read.