Premium / Discount on Purchase

    The premium/discount on purchase is the difference between the amount paid for an investment and its latest valuation at the time of purchase. It is positive (a ‘premium’) when the amount paid is greater than the latest valuation at the time of purchase and negative (a ‘discount’) when the amount paid is lower.

    Example: A property is valued at £100,000 however it is sold for £110,000, the increase on the value represents a premium of 10%. Conversely, if the same property were to be sold at £90,000, that would represent a 10% discount on the valuation.

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