DISPOSAL OF PROPERTY

Waikato Times, Volume 114, Issue 19117, 30 November 1933, Page 6

DISPOSAL OF PROPERTY

BEQUEST UNDER A WILL. AN UNUSUAL ARRANGEMENT. BENEFICIARY AS MORTGAGOR. Application for an order to % giv6 effect to a family agreement for the sale and purchase of a farm of 12SJ acres at Matangi bequeathed under ihe will of the late Charlotte Bettley, widow, of Hamilton, was made in the Supreme Court, Hamilton, before Mr. Justice Herdman, this morning by Mr. E. V. Stace on behalf of John Bettley, a son of the deceased. Agreement with the proposal was expressed by Mr. C. A. Speight, for all other children of the deoeased, and by Mr. F. A. de la Mare, on behalf of any possible ohildren of John Bettley. Explaining the clroumstancee, Mr. Stace pointed out that Mrs. Bettley bequeathed the farm to her son Arthur Bettley under certain conditions. As he did not wish to comply with the conditions he was no longer a beneficiary under the will. The will then provided that the farm be sold for £3OOO, the proceeds to be Invested and the income to he paid to John Bettley. After his death the Income was to go to his ohildren or falling his having any ohildren to the residue of the estate. As the farm was subject to a Government mortgage of £2471 it would be necessary to sell it for £5741 in order to raise £3OOO. After the death of deceased last April the trustees endeavoured to dispose of the property at such a price as would return £3OOO net but soon realised that It would be impossible to get it. The best negotiations realised only £3O an acre and the Government valuation was £4120, equal to £32 an acre. No Interest Payable. "When it was found impossible to sell the place for the price wanted,” added counsel, “John Bettley offered to buy the farm at the full prioe of £5741. He consented to take over the mortgage, pay all outgoings, and take over a second mortgage for £3OOO. He would not have to pay interest on the £3OOO as he was entitled to that sum under the will. His Honour: What happens when Bettley dies? Mr. Speight replied that the mortgage would fall into the residue of the estate. If Bettley’s personal representatives could not find the interest the position would be the same as it is now. His Honour: You are asking me to give leave to sell. I don't like the transaction at all. Mr. de la Mare emphasised that the property must be sold and the only alternative would be to sell it to some,one other than Bettley. His Honour pointed out that there .was, no term for the mortgage In the event of Bettley dying. Mr. de la Mare said if Bettley died without issue his interests ceased. "I do not like this kind of mortgage," stated His Honour. "All sorts of difficulties might arise after this man’s death. I think the registrar should go into the matter so I can deal with it next week." The matter was adjourned until next week and the registrar was instructed to table a report.