Mortgagee sale by Rural Bank

Press, 20 February 1986, Page 2

Mortgagee sale by Rural Bank

. A sheep farm of 248 hectares (613 acres) near Rakaia with a Government valuation (1983) of $349,000 will be sold by auction in Christchurch today, as a mortgagee sale by the Rural Bank. The auction will be by Dalgety Crown, at the request of the Rural Bank, which is the first, third and fourth mortgagee for the farmer, Mr F. H. Valpy.

The redemption price is $142,000, which includes the $45,000 owed by Mr Valpy to the Rural Bank.

The manager of Dalgety Crown real estate division, Mr Hugh Morrison, said he believed that the sale would have happened irrespective of the downturn in the farming economy, because he considered the mortgagor had had insufficient equity when he bought the property.

The property has a land value of $270,000 and a new three-bedroom house with a Government valuation (1983) of $79,000. The property is on the corner of Sharlands and Ardlui Roads and Sharlands and Boundary Roads, Te Pirita, which is 14km from the Main South Road and 16km from Rakaia.

The general manager of the Rural Bank’s head office in Wellington, Mr Ray Chappell, said it was the bank’s policy to use all means available to keep farmers on the land. However, in Mr Valpy’s case the farm had been abandoned some time ago.

Mr Chappell would not say how long ago the farm was abandoned.

“Mr Valpy has been assisted by the bank,” Mr Chappell said. “He has had some counselling and advice while he was on the farm.”