CO129-587-8 Crown leases 18-4-1940 - 17-3-1941 — Page 48

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39. It is to be noted, in passing, that the renewal fine, and

the adċitional Crown rent paid some years before the expiry of the

original lease, together make up the "consideration for its

reversionary interest" (mentioned in its reply to Mr. Bird) which

the Government is now demanding. Where site areas are large, the

renewal fine is reduced because of the larger proportion of the

required total which is paid in increased Crown rent. Where rent is

increased but slightly, the lumps um renewal fine (or premium) is

larger.

40. To an enquirer who asked how these terms could be justified,

the information was disclosed by the Land Officer (letter to Mr. C.

Bernard Brown, dated 31st March, 1937) that the Government proposes

now to enforce the undiluted doctrine of leasehold law.

"The premium (writes the Land Officer) was cal- culated on a method used by surveyors and valuers generally. If renewal were to be deferred for some years you would in the meantime continue to pay the present Crown Rent, but in the event of renewal being agreed to later, you would be called upon to pay a proportionately higher premium as the term of the

lease diminishes.

"The increased Crown Rent is at the rate at present charged, and the reason for making it payable from the date that renewal is agreed to, is because from that date the value of your property would, for selling purposes, be enhanced by the assurance of an extended term.

"With reference to your statement that Government has done nothing to add to the value of your property, I would refer you to the terms of the existing Crown Lease under which you are bound to keep the premises in repair and deliver them to the Government 'sufficiently repaired' at the end of the term.

"I might also point out that 23 years is quite a long period and that it would not appear to be unfair or unreasonable were Government to refuse to consider renewal at this stage, in view of the difficulty of anticipating conditions generally and land values in

particular.

41.

comment.

The last paragraph of the foregoing letter calls for special

The Government has apparently decided, at this late date,

not only to enforce the strict terms of leasehold law but to make it

a matter of favour if the lessee is allowed to act in good time,

which from his point of view considerably eases his burlen. Refer-

ence back to the quotation from Curtis's "The Valuation of Land and