LANDLORD AND TENANT.

Auckland Star, Volume LVII, Issue 53, 4 March 1926, Page 12

LANDLORD AND TENANT.

(To the Editor.) Sir.—The London "Daily Express" in commenting on a new law on the above subject, makes the following observations, viz.: "At least one glaring exception cries out for reform." "Because of an old Roman law which provides that whatsoever ie put into the ground lielongs to the ground, a leaseholder who

■builds a house op makes a garden, or

reclaims a swamp, so far from having any title tn the building or to the land lie has made fertile, is not even entitled to a penny of compensation in respect of the improvement. 7 ' Now there are several varieties of leases such as rural and urban, building and improvement leases, short and long leases. Then there is the Glasgow lease, and the lease with a purchasing clause. It is difficult to dis-

cues the point in issue where toe facts and views are so meagre- and of so general a nature as set out in the above extract. One can only deal with average pases, Let us take the ease of a city lease, for say, a term of 66 or 99 years. There are hundreds of cases, including many in this city, where the increased , annual ground rent value, during the I terms of the lease and of which the tenant has had the benefit, has amounted ■in the total to many limes the value of

j the building 3 and improvements erected or i carried out by the tenant. Where is the [hardship in such eases? For many years ; it has been the practice to grant lessees 'a certain proportion of the value of improvements as at the termination of the lo.iso. It is all a matter of contract, and freedom of contract should not he interfered with. The less benefit a landlord is going to get by any improvements the more rent and stringent conditions he is

going to demand

All possibilities and

eventualities arc taken into eonsmeration ljy the parties on making thfi contract. If a person takes a lease for, say, (i(i years, and immediately expends, say, £20,000 in erectinp warehouses, factories, shop or offices, it is he and not. th.? landlord who reaps the benefit of the .increased rent for that long period, at the end of which the buildings may be a bit dilapidated. It is open to everyone in treating for a lease to stipulate for a

low rent or compensation for improve-

ments, after deducting the value which lie himself lias taken out of them. It surely does not require an Ant of Parliament to protect men when entering into contracts in this age of universal education and business acumen. —I am, etc., JOHN A. BEALE.