18
years (non-renewable) based on the 7% Tables shows that the present value of such a lease is not materially reduced until the lease has less than 30 years unexpired.
Length of Lease.
(i) Full term of 75 years unexpired
(ii) Term of 60 years unexpired
Years Purchase Figure
14.196
14.039
(iii)
(iv)
50
11
11
13.801
40
11
1?
13.332
(v)
(vi)
(vii)
11
11
30
12.409
11
#!
25
{1
11
11.654
20
11
"
10.594
(viii)
11
11
15
11
9.108
(ix)
11
11 10
11
11
7.024
(x)
11
!!
5
11
tt
4.100
(xi)
11
0.935
1 year unexpired
5. I have on several occasions informed Mr. Key, The Secretary of the Chamber of Commerce that the reduced term of the lease is taken into consideration by me when making val- uations for all purposes.
It is possible that valuers in private practice may have ignored this factor when advising clients on the question of property valuations but Government cannot be held respon- sible for lack of knowledge or ignorance of the principles of valuation on the part of such private valuers. There has no doubt been, and probably there still is, a definite lack of understanding of the laws of leasehold tenure in the minds of the people of this Colony.
6. A Regarding the valuation of properties for Probate purposes the practice is for the Estate Duty Commissioner to submit to me a list of the properties to be valued in order that a check may be made on the value set out in the schedule to the Affidavit.
B I may say that in many cases such valuations are ridiculously low, and in such cases the Executors of the Es- tate are advised that the Government valuation amounts to a certain higher figure. The matter is then argued out and my valuations may be referred back to me for further considera- tion after the Executors have commented upon them.
C In some cases the figure in the Affidavit is higher than my valuation and quite often in large Estates some prop- erties are valued higher and some lower but the total figure may not differ very much.
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