The Expected Useful Life or “EUL” is the average amount of time in years that an item, component or system (in a building or property improvement) is estimated to function when installed new and assuming routine maintenance is practiced. For example, the expected useful life of a roof with a PVC membrane may be approximately 15 to 20 years.
The Expected Useful Life of building components and systems is noted in a Property Condition Assessmentand is used to help calculate expected short- and long-term capital expenses required to maintain a property. Freddie Mac and Fannie Mae refer to this term as the “Estimated Useful Life.”
