VALUE OF LEASEHOLD IN LAND

Chronicle (Levin), 9 April 1947, Page 8

VALUE OF LEASEHOLD IN LAND

—Pres$ Associcttion

By Telegraph-

NELSON, April S. The Land Saies Couxl, Afr. Justiee Areher and Mr. W. Ktewart, lias isstied directions ttr the. Nelson Land Saies Committee 011 tlre method of determin ing- the value of leasehold interest. The matter is ot' great importanee to nianv holders of native leases. A test case taken to Court was in connection with ali application for the approval of the. sale of a native lease in Motueka. The directions of the Court are as follow: — (1) Onee the value of the f rCehold has been determined, the value of the leasehold interest assessed in acforrlance with section 54 of the Valuation of Land Act, 1925, and by the use of Ipwood's faliles, may be accepte'd as prima facie evidcnce but is liot concltisive evidenc'e1 of the faif value of such interest f'Or the purposes of tlie Land Saies Act! (2) The committee is boiiiid to have regard to any evidence, includiilg the evidence of eompdrable saies, which may assist it in determining the fair value of a leasehold interest but it is for the 1 committee to say wh'at weight may properly be given to any sale which is claimed* to be comparable. bearing in mind that the fdir value, of the lessee's inte-rest, added to the fair value of the lessor's iiiterest, must not exeeed the capital value of fhe freehold at date' 6f assessment.