The value of that fee simple owned property depends on all of the factors that effect our use and how those factors impact on what the market is willing to pay for those rights. It doesn t even mean you can do what you want with the property in the meantime. As anyone who has bought land to develop in a particular way, either for profit or their own use, has found out, there are literally hundreds of rules, regulations and other factors that reduce your right to determine what you do with the land. Ultimately what a lender decides the property is worth for a loan and what a buyer thinks its worth to buy may not be what you as an owner think or even what you have already invested into the property. Value is determined by market.
Market is simply what a willing buyer is prepared to pay a willing seller.
We all know what has happened to real estate values in the last few years and realize the label you put on a type of ownership has very little to do with value. I think it is helpful in understanding life leases then to examine the rights and obligations and to see that it is just one of many forms or variations on property ownership that may be right for you or someone you know in particular circumstances. There are people who rent all their lives, some because they can t afford to buy, but others, because for whatever reason simply chose not to own. These people may in fact pay as much money over a lifetime as if they bought and have no equity at the end. On the other hand people may buy a property and not be able to do with it what they planned and in the end the market may dictate they can t sell it for what they paid for it.