‘Minus £3’ Is Fixed As Value Of Cobden Leasehold Section

Greymouth Evening Star, 12 July 1947, Page 4

‘Minus £3’ Is Fixed As Value Of Cobden Leasehold Section

For the first time since its inception the Westland Land Sales Committee yesterday accepted a “minus” valuation for a leasehold property. This decision means that’the lessee of the property has been given no interest in the value of his lease. The Crown has in the past assessed the lessee’s interest at less than nothing, but this is the first time that the committee has approved of a sale on such a basis.

The transaction was that m which J. Wood sought to sell a property in Bright street, Cobden, to H. Payn tor £650. After the committee’s first decision, an appeal was lodged by the Crown and the case referred back to the committee, which on Wednesday announced that the sale would be approved at £534. The vendor for whom Mr A. M. Jamieson appeared, sought permission, however, to call further evidence in connection with a culvert which had not previously been considered. Further Inspection

Valuers for the vendor and the Crown gave their views of the value of the culvert yesterday and both remeasured it at the request of the committee. On their return, Mr A. E. Wogan, the Crown representative, announced that both had agreed that the culvert was worth £6O. This sum, he added, should be deducted from the unimproved value of the property (£100) making a freehold value of £4O. Using the committee’s new formula to find the leasehold value, the lessee’s interest, said' Mr Wogan, was minus £3. By adding the value of the culvert to the value of the improvements (£485) and subtracting the minus of £3, a figure of £542 was reached and this was £8 in excess of the price fixed by the committee earlier this week.

In reply to Mr J. W. Greenslade, Mr Wogan said that the use of Inwood’s table often gave a minus value.

The committee, approving of the sale at £542, stated that the freehold value was £585. Sale of Section

In announcing the committee’s decision in respect of the application by ,F. A. Kitchingham and A. M. Jamieson to sell an Alexander street section to G. A. Cooper for £l5O, which had been referred back to the committee by the Land Sales Court, the chairman (Mr M. Wallace) said the committee approved of the transaction subject to a reduction in price to £143.

The chairman said that the capital value of the property as a freehold had been adjusted from £175 to £lB5, of which £lO was for improvements. The lessor’s interest was £42, leaving a market value as a leasehold of £ 143.