David Glen says the lease fails to offer a freeholding option. Photo / Chris Gorman
David Glen says the lease fails to offer a freeholding option. Photo / Chris Gorman
A group representing 110 lessees with houses on Cornwall Park Trust Board land through Greenlane and One Tree Hill has rejected a proposal to change their lease terms.
David Glen, Cornwall Park Leaseholders Association spokesman, said the new lease being proposed issued by the board did nothing for people onthe land and he criticised the absence of a freeholding option so people could avoid having to pay potentially more than $70,000 annually to be on the land.
"This is vital from a market perspective and until it is sorted out we can make no progress with the trust," he said.
"The other major leasehold estates in Auckland - Dilworth, St John's College Trust Board and the Melanesian Mission Trust Board - all modified their lease years ago to incorporate freeholding. Why can't the Cornwall Park Trust Board do the same thing? Their reasons against are unjustified and contrary to the long term best interests of the trust and the public who use the park."
Don Tillbrook, association chairman, released a detailed analysis of the new lease which criticised many aspects.
The lease had some tougher new conditions, including that a trust board architect must be used to supervise building work and subdivision required board consent, and the new lease was not modern but the board's attempt to further strengthen its position ready for the next round of rent reviews in about 10 years, Tillbrook wrote.
In the last round of rent reviews, the board bought back 9 per cent of its leasehold properties without compensation, he said. Several properties had forced or mortgagee sales.
"No member of the executive intends to sign it," Tillbrook wrote.
However, the board says its new lease has financial benefits, offering an initially lower payment rate for seven years, gives lessees more power to sublet or rent, enables them to develop and subdivide their land, is written in plain English and no longer demands five-year house repainting.
John Clark, trust board chairman, said the lessees have until May 7 to let the board know if they will adopt the new lease and he hopes they will.
