14
-
4.9
Houses" given in paragraph 5 of this Report will make the point
clear. The value of the expiring lease is to be deducted from the
value of the proposed lease in order to arrive at renewal terms.
Twenty years before expiry the old lease still has considerable
value, but, if the transaction is left to the last year of the old
lease, the value credited to the lessee is negligible and a large cash sum becomes due as premium (although the lessee has saved
something towards it by paying the old Crown rent for so much
longer). However, by early action he gains the advantage of com-
found interest and so saves a substantial amount.
At a
--
not to
43. Before stating our conclusions, we desire to refer to an
aspect of this question not strictly within our terms of reference
but which has arisen during the consideration thereof.
conference we held with Government officials on the Cth August,
1939, the contention was put forward by the Hon. Mr
Mr.S.Caine that the
Secretary of State's Instructions of 1898 had reference
the 75 year non-renewable leases but to the terms upon which
renewals should be granted at the 75th year under the 75 plus 75
year leases which were then being introduced as the standard form.
Whether that is so can doubtless be verified by examination of the
correspondence at the time. We can only emphasize our contention
that, morally speaking, a ruling applied to future 75 year leases
should be extended to all 75 year leases.
44. The Hon. Mr.S.Caine also claimed that n+ +1 75th year, the
75 plus 75 year leaseholders "will have to pay up to the full value.
of the land but not of the building. They will be faced with a
premium and rent in respect of the land but not of the buildings"
(Minutes, page 6, para.1). On page 2 of the Minutes, the Hon. Mr.
Caine dealt with the following words from the Secretary of State's
instructions:
"the original losse : the 23signee in possession,
on the expiretion of the term should be offered the renewal of the lease for the further term of 75 years upon such an advance of Crown rent as is justified by the then value of the land and without fine".