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end of the first 75 years?
The Hon. Mr. Caine: They are not to be charged with the value of the buildings: they are only to be charged for the in- creased value of the land. But in the case of the 75 year non- renewable leases, under the terms of the lease, the buildings and the land revert to the Government. The 75 plus 75 year lease- holder 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.
In reply to further questions, Mr. Caine said he thought the Government would be quite prepared to give lessees the option of paying the amount due in the form of Crown rent and not of premium (as a lump sum). It would involve more clerical work because those lessees would be paying a special Crown rent and not the standard Crown rent of the area in which their property is situated.
The Chairman mentioned the Peak as a special case.
The Hon. Mr. Caine : I can never see that the Peak deserves any special consideration.
There may be special considerations affecting valuations on the Peak, but the principle remains the game. The property may not be so valuable on account of the restricted market but that only affects the valuation: not the principle.
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Mr Blake: The valuation of Peak properties is most diffi- cult. We can all give instances of properties fetching quite good rentals but giving no return to their owners.
Mr. Richardson: The remedy is for the lessee to re-build the property. If a man applies for a renewal of a Peak lease with 15 years to run, and is told the amount of the premium, he has only to re-build to get a reasonable and fair return on the value of the new house.
return.
Mr. Landale: Most of the properties do not bring in a
Sir Vandeleur Grayburn mentioned a Bank house which cost $70,000, and $200 a month was all that could be obtained as rent.
Mr. Richardson said that the ordinary investor who bought a small site, say on Mount Cameron, of half-an-acre in extent, could obtain a rental of $250 a month which gave him a fair return on his money.
In further discussion, "Mountain View" and "La Hacienda" proferties were mentioned.
The Hon. Mr. Caine said the Government was perfectly prepared to take the surrender of surplus areas of a site.
The Chairman mentioned the question of taking part of the land under garden lease in the case of large sites on the Peak.
The Hon. Mr. Caine said he preferred to leave that point for separate consideration.
In reply to another question, the Hon. Mr. Caine said thet he thought Government might give the 75 year non-renewable lease- holders a new lease for 75 plus 75 years, the new term to begin from the date of surrender of the old lease.
The desirability of early application by lessees for a new lease was emphasised. It was pointed out that the obligation was