Commercial

WAULT

Calculate Weighted Average Unexpired Lease Term, to expiry and to break.

Intermediate

Introduction

Who this is for: Investors and lenders assessing income security on a multi-let asset.

Why it matters: WAULT is the single clearest measure of income security. It is weighted by rent, not by unit count, because a large tenant leaving matters far more than a small one. Lenders price debt off it.

Typical scenario: A four-unit trade counter estate where one tenant provides half the income and has a break in two years.

Common mistakes:
  • Averaging lease lengths without weighting by rent — a common and material error.
  • Quoting WAULT to expiry when the market convention for risk is WAULT to break.
  • Ignoring that a single dominant tenant can flatter the figure while concentrating risk.

Inputs

Tenant 1

£

years

years

Tenant 2

£

years

years

Tenant 3

£

years

years

Analysis

WAULT to expiry is 7.96 years and to break 4.42 years, across £120,000 of income. The market convention is to quote to break, since that is the earliest the income can realistically be lost.

This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.

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Sensitivity Analysis

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Live Results

WAULT to Expiry

7.96x

WAULT to Break

4.42x

Total Rent

£120,000

There is a large gap between WAULT to expiry and to break — the income looks more secure than it is if tenants exercise breaks.
Largest Tenant Share50.00%
Unweighted Average8.33x