MORTGAGORS AND LESSEES

Otago Daily Times, Issue 23055, 4 December 1936, Page 13

MORTGAGORS AND LESSEES

APPLICATIONS FOR RELIEF LODGMENT BEFORE JANUARY 31 <Per United Press Association) AUCKLAND, Dec. 3. " So many mortgagors and lessees are not aware of the fact that they have been enjoying the benefit of legislation now repealed that there is a serious danger of their overlooking the necessity for making application under the new legislation," stated the Attorney-general (Mr H. G. R. Mason) when commenting upon the present position under the existing mortgage relief legislation. The Minister made it clear that under the new legislation all applications for relief must be lodged before January 31 next, and that in default of application by that date all relief will be withdrawn.

"The point is that all previous legislation is repealed by the new Act," Mr Mason said. " Thus, the great army of mortgagors whose mortgages are overdue apd have been running on for many years under the protection of the repealed legislation will now require to file an application before January 31, 1937, if they wish to avoid reverting to the ordinary law under which mortgagees may call up overdue mortgages at any time on giving three months' notice. This position, which in any case would have to be faced sooner or later, has been brought about by the policy of the new legislation, which is to dispose of all questions of special relief or adjustment between mortgagor and mortgagee, lessor and lessee, and to enable all parties to revert to the ordinary law and look forward to the future on a definite and assured basis at the earliest moment. " The same observation as to the necessity for an application before January 31 applies not only to overdue mortgages," Mr Mason added, " but to any mortgagor or lessee who has a claim to relief of any description under the Mortgagors and Lessees Rehabilitation Act.'

RELIEF LEGISLATION DETAILS OF CASES (Per United Press Association) WELLINGTON, Dec. 3. Details of cases affected by the Mortgage Relief legislation which has been superseded by the Mortgagors and Lessees' Rehabilitation Act were given by the Attorney-general (Mr H. 6. R. Mason) when he was giving figures. Mr Mason said they might not. however, give a complete view of the effect of the laws relating to the relief of mortgagors and lessees because the effect was to encourage much voluntary adjustment and agreement which might not appear in the figures. The total number of applications for relief received under the repealed legislation was 17,203, and the cases in which relief was granted totalled 7357. The total princioal sums affected amounted to £36.955.500 7s 3d, and the interest.in arrear as at the date of application was £2.495,781 Is Id. of which £365,335 19s 9d was remitted. "It may be mentioned." said Mr Mason, "that this last-mentioned figure probably gives little idea of the actual,relief because the payment of arrears of interest in many cases was nominally suspended, but in actuality it was realised that the chance of payment of interest so suspended was rather remote. Interest rates were reduced in 3378 cases. All these figures, of course, aoply only to mortgages."

The number of leases subject to applications was 2553, involving annual rentals amounting to £868,630 14s 2d. In 1260 of these cases relief was granted, and in 294 cases relief was declined. Arrears of rent amounting to £114.548 18s 6d were remitted, and rentals were reduced in 716 cases.