Waitara Lands - Leases and Freeholding

Image of Waitara taken from a drone

 

Waitara Lands Act

The Waitara Lands Act was passed in December 2018 and came into force on 17 March 2019. The Act enables leaseholders to buy their leasehold land. At the end of June 2020, 183 Waitara leaseholders have bought their properties and another 34 agreements have been signed, but not finalised.

More information on the passing of the Waitara Lands Act is available at Waitara Lands Act 2018.

Buying Waitara leasehold land

If you are a leaseholder you now have the option to buy the land from NPDC. You will then own the land freehold.

The purchase price for leasehold land will be based on the unimproved land value.

Leaseholders do not have to purchase the land, you can continue to lease the land from NPDC as you do now.

If you are interested in finding out more about purchasing your leasehold land have a look at the Frequently Asked Questions. If you have other questions please contact us.

If you would like to begin the process of purchasing the land please complete and submit the Notice of Intent to purchase Waitara leasehold land.

Perpetual Leases

About one quarter of all residential properties in Waitara are on leasehold land. In a perpetual lease, sometimes referred to as a ‘Glasgow lease’, the lessee has the right to renew on the same terms and conditions as the original lease. Most leases have a 21 year term (although some are for lesser terms) with the rental reviewed at the start of each lease term (although some are reviewed more regularly).

The lease takes the form of a ground lease, the lessor owns the land but gives the right to use and occupy the land to the lessee in return for rent. Any improvements on the land form part of the leasehold interest and are owned by the lessee.

Information for Leaseholders

How much is the rent?

Rent varies from property to property and is set out in the lease.

How are lease rentals calculated?

Rent is calculated in accordance with the terms of the lease and the Public Bodies Leases Act 1969.

Is your lease expiring?

When a lease is expiring we notify the leaseholder and ask an independent registered valuer for a market rental value. The lessee is notified of the new rent and has the option to either accept a new lease, require the rent to be determined by arbitration or not renew the lease.

Should the lessee dispute the rental they must formally notify us in writing and engage the services of a registered valuer to determine the rent through an arbitration process.

If no formal objection to a new lease and rent notice is received within two months from the date of notice, the new lease is deemed to have been accepted.

If you are unsure of your obligations, we recommended you seek independent professional advice. 

If your lease is subject to a mortgage we recommend you check with your bank.

Paying your lease

Rent is payable six monthly in advance. If you prefer to pay monthly or fortnightly this is possible, give us a call on 06-759 6060 to discuss.

There are various ways to pay your lease:

  • Online payments
  • Direct debit - Weekly, fortnightly or other periodic payments can be made to suit your budget. Please complete the direct debit form and return it to us.
  • Internet banking - New Plymouth District Council bank account: 03-0713-0357528-07  or you can make a payment in person at Westpac Bank. Make sure you include your surname, relevant code (i.e. debtor number) and the reference 'Debtor'.
  • In person at the Civic Centre or one of our service centres in Waitara, Bell Block or Inglewood.

We offer continued support to leaseholders. If you are having difficulties with your payments please contact the Property Team. Give us a call on 06-759-6060 to discuss. 

Selling your leasehold property

When you sell your leasehold property we need to consent to the transfer of the lessee's interests (improvements such as the house and outbuildings).

Have your lawyer complete the Transfer Consent form (below) and return to us. They will need to include copies of the leasehold and freehold Certificates of Title. 

It costs $175 per consent. Please allow five working days for us to process. 

Buying a leasehold property 

When you buy a leasehold property you are purchasing the leasehold interest and the rights to use and occupy the land in return for meeting the rights and responsibilities of the lessee under the lease.

Mortgaging your property

We need to consent to the mortgage of the lessee's interests (improvements such as the house and outbuildings).

Have your lawyer complete the Mortgage Consent form (below) and return to us. They will need to include copies of the leasehold and freehold Certificates of Title.

It costs $175 per consent. Please allow five working days for us to process.  

Disclaimer

We strongly recommend you seek professional and legal advice prior to purchasing a leasehold property. All information contained within this site is to be viewed as guidance only. We do not accept claims of loss or liability based on the information contained within.