The Bare Dominium of a property is the interests that remain after leasehold rights are removed. These properties are typically characterised by a long term land lease, which are improved by the land tenant or lease holder from which a sub-lease income could be received. The right to this sub-lease income will revert to the land-owner at expiry of the leasehold. Valuers are, however, sceptical to assign a value to such improvements in the hands of the land-owner, due to uncertainty of future market changes and the time-frame associated with the forecast. This study investigates the use of a put-option to create a risk-free investment, calculated by using an iterative Black-Scholes Model, as an alternative to traditional discounted cash flow techniques. The advantage of using options pricing theory is that it includes volatility of the market in the value calculation. The research is based on a case study involving a number of actual valuations. The outcome is a proposed model that can value the bare dominium and assign a risk-adjusted value to the property, thereby calculating the risk involved for changes in the market volatility, different types of property, risk structures and lease terms.