TEASDALE SETTLEMENT FREEHOLDS.

Waipa Post, Volume V, Issue 214, 23 May 1913, Page 2

TEASDALE SETTLEMENT FREEHOLDS.

Many applications have already been sent in by renewable leaseholders in the Teasdale Settlement for the conversion of their holdings into freeholds. Opinions as to the valuations and amounts to be paid are somewhat varied, but all agree that they are in the fortunate position of being able to acquire the coveted freehold at a fractional part ol its value. Some o'f the sections have been valued up to six or seven times the original value, but as these are generally governed by recent adjacent sales, it is not expected that the Assessment Court will be overburdened with objections.

For the information of those who are applying for the freehold upon deferred payment we would point out that the amount advised as to be paid annually does not include any charge for interest, this has to be added at the rate of 5 per cent for the unpaid balance.

As the Valuation Department’s notices have been issued any leaseholder can arrive at the price payable for the freehold. Roughly it is 22% per cent of the increased value plus the original value. A section originally valued at £IOO and now valued at £4OO (with 2% years of lease expired, which is about the average life of Teasdale renewable leases) will cost for the freehold, . say £167 lOs made up as follows: Original value = £IOO plus 22% per cent of £3OO (the increase in value) = £67 10s, total £167 lOs. This shows the lessee’s profit —in other words the value of the goodwill of the lease—to be £232 lOs— not by-any means a bad investment. It would be interesting to know just exactly what in cold cash the Teasdale Settlement has meant for the pockets of a section of the Te Awamutu residents. It must run into many, many thousands. It may perhaps not be out of place to remind all renewable leaseholders that there is a double reason why no time should be lost in acquiring the freehold. First, the goodwill value de-

creases day by day as the unexpired term shortens ; and, further, the values are speedily increasing, and as it is a provision of the Act that the valuation shall be taken as on the date of application for the freehold,it is clearly evident that any applications made in, say, six or twelve months may not be adjusted on to-day’s value ; so that renewable leaseholders, in their own interests, should lose no time in the acquirement of the fee simple.