LAND TENURE

Otago Daily Times, Issue 26043, 5 January 1946, Page 6

LAND TENURE

RENEWABLE LEASES REHABILITATION SYSTEM (P.A.) NEW PLYMOUTH, Jan. 4. “Amounts owing by ex-servicemen settlers by way of agreement for sale and purchase are not to be paid off by rehabilitation loans and the titles issued immediately to the ex-service-men concerned,” said the Minister of Rehabilitation, Mr C. F. Skinner, at New Plymouth last night, when explaining the Government’s decision. This type of tenure was introduced under the Land Laws Amendment Act, 1944, and was available to ex-service-men taking up land., The tenure was applied to the settlement of ex-service-men by the Land Settlement Board and to properties acquired under section 51 of the Servicemen’s Settlement and Land Sales Act. In such cases ex-servicemen usually had the option of taking a renewable lease. Briefly, said Mr Skinner, the tenure allowed for the price of the land, together with interest, to be paid by Instalments, a separate current account being kept for stock and implements. Until the principal and interest were repaid, no title could be issued and no transfer could be permitted without the prior consent of the Minister of Lands. The loan limitation for a dairy farm was £SOOO, and for a sheep farm £6250. In cases where the value of the property exceeded the loan limitation, Mr Skinner explained that it would be necessary for the applicant to find half the difference between the limit and the value of the property, the Government lending him the other half at normal rates of interest, as distinct from the rate of 2 per cent, for the first year and 3 per cent, thereafter on advances within the loan limits. If, however, the applicant was unable to find his half of the money needed beyond the loan limit, he could take a renewable lease. Illustrating the terms on which an ex-serviceman could obtain a renewable lease, Mr Skinner said that if the unimproved value of a dairy farm valued at £6OOO was £I2OO, the applicant would require a loan of £4BOO to buy the improvements and stock, and the department would charge him an annual rental of 3 per cent, on £I2OO, giving a lease of 33 years, with a perpetual right of renewal. A point' to be remembered in connection with renewable leases, Mr Skinner said, was that the State owned the land. This was rented by the lessee, who purchased the improvements to date. About the same number of men had elected to take renewable leaseholds as agreements for sale and purchase.