NGAERE LEASES.

Taranaki Daily News, 29 June 1922, Page 7

NGAERE LEASES.

ASSISTING THE TENANTS, . Tn 1920 the New Plymouth Borough Council agreed to accept surrender of certain leases granted by the council of lands known as the Ngaere Reserves and to grant fresh leases to the tenants for the balance of the original terms with perpetual right of renewal. As a term of this agreement it was arranged that the value of the improvements should be estimated as at the end of the terms of the existing leases, and the tenants should pay therefor by instalments spread over the balance of the terms. This agreement was carried into effect and fresh leases granted for the balance of the terms, containing perpetual rights of renewal, the rentals being sums consisting of the old rentals plus the instalments on account of the purchase of improvements. It is now proposed to vary the arrangement by providing that the payment of the instalments of the purchase money for the improvements should be spread over an additional period of years. The borough solicitors (Messrs. Govett and Quilliam), were asked for an opinion on the matter, wrote to the Borough Council on Monday night that they were of opinion the council had the necessary power to make an arrangement of the kind suggested. This agreement could not be registered, however, and could bind only the tenant. Hence it would be necessary to make special arrangements from time to time as the leases were assigned or otherwise dealt with. In view of this opinion the council adopted the report of a committee, which recommended as follows: (a) That provided it can legally be done Mr. J. Butler be permitted to spread the payment of the value of his improvements over a period of 14 years as from November 1, 1920, in lieu of seven years provided by his present lease. Tlie necessary legal document to be prepared by the borough solicitors, Mr. Butler to pay all legal expenses and also the expenses of the actuarial calculation which will be rendered necessary. This arrangement not to be given effect to until Mr. Butler pays all rent in arrear, amounting to £266 15s (two half-years due November 1, 1921, and May 1, 1922) . (b) That tenants who converted their leases under the conditions arranged in 1920 and who have not since transferred their leases be permitted under the same conditions as are set out in paragraph (a) to extend the period of payment of the value of their improvements by an additional period equal to the period provided by their present leases. (c) That new tenants who have purchased their leases since the conversion of 1920 be granted similar rights of extension of the period of payment of the value of the improvements upon the further condition that the mortgagees of the -leases make substantial reductions in the amounts of their mortgages, the amount of the reduction in each case to be approved by the council before any extension is granted. (d) In view of the substantial increases in the rentals of these leases, which must necessarily owing to the high unimproved value of the land take place when the leases are renewed, the committee strongly urge that if at all possible lessees should carry on and pay off the value of their improvements -within the period fixed, by their present leases. To take advantage of the extension of the period as now offered will merely postpone the evil day and cause tenants financial difficulty again when the renewed leases come into operation.