LEASE IN PERPETUITY.

Hawera & Normanby Star, Volume XVIII, Issue XVIII, 25 October 1912, Page 5

LEASE IN PERPETUITY.

CAPITAL VALUE

[By Telegraph—Special to Star.J WELLINGTON, Oct. 25. The Prime Minister's attention iiaving beon drawn to deficiencies in the clause enabling lease-in-perpetuity holder,.- or settlement land to purchase the freehold, he circulated a new clause tonight making it clear that "the original capital value" means the amount upon which rent at the rate of five per cent per annum was computed for the existing term. For a renewable lease the Valuer-General shall make a new capital valuation, from which is deducted the value of all improvements, and in no case shall the present capital value be less than the original capital value. The amount by which the present capital value exceeds the original capital value being ascertained, an actuarial computation 6hall be made of the present value of such excess, if payable at the expiration of the existing term of lease. The rate of interest for the purpose of such computation shall be five per cent per annum, payable halfyearly. The amount ascertained by such actuarial computation shall be added to the original capital value, and the result shall be the price.