The following provisions shall apply to all leases now or hereafter granted by the Public Trustee under the provisions of The Auckland Hospital Reserves Act 1883, or this Act except leases in respect of allotments numbered 1, 2, 3, and part of allotment numbered 4 of section numbered 15 of the City of Auckland, containing three roods twenty-eight perches—bounded towards the north by Victoria Street, 328 links; towards the east by Queen Street, 283 links; towards the south by Darby Street, 328 links; and towards the west by Elliott Street, 283 links:—
(1) Not sooner than eighteen months and not later than nine months before the end of the term granted by the lease two separate valuations shall be made by a valuer appointed by the Public Trustee—to wit, a valuation of the then gross value of the fee-simple of the land then included in the lease, and also a valuation of all substantial improvements of a permanent character made or acquired by the then or any proceeding lessee and then in existence on the land.
(2) As soon as practicable after the valuations are made, being in no case later than six months before the end of the term, the Public Trustee shall cause a copy to be served upon the lessee.
(3) Within seven days after receipt of such copy the lessee shall, by notice in writing delivered to the Public Trustee, elect whether he will accept a fresh lease of the land for a further term equal in duration to that granted by, and (except as to the rent to be paid thereunder) upon the same terms, and subject to the same provisoes, powers, covenants, and conditions, as are contained and implied in, the lease then existing together with the right of further renewal and all other rights thereby conferred, and so from time to time at the expiration of each further or renewed term on the same terms and conditions on which the original lease may have been granted hereunder or thereunder, but subject nevertheless to the fixing as herein provided at the end of each term of the rent payable during such further or renewed term; such further term to commence on the expiration of the then existing term, and the annual rental to be equal to five dollars per centum on the gross value of the land after deducting therefrom the value of the substantial improvements of a permanent character as fixed by the respective valuations aforesaid.
(4) If the lessee does not duly elect to accept a fresh lease as above mentioned, or if, having duly elected to accept the same, he fails, refuses, or neglects to execute the fresh lease within seven days after receiving notice in writing from the Public Trustee so to do, then a new lease of the land shall, not later than one month before the end of the term for which the terminating lease was granted, be put up for sale by public auction by the Public Trustee.
(5) The upset annual rent payable under such new lease shall be fixed by the Public Trustee, not being a greater sum than that at which the aforesaid fresh lease was offered to the outgoing lessee, and the term of such new lease, and the provisoes, powers, covenants, and conditions to be contained and implied therein, shall (except as to the amount of the aforesaid annual rent) be the same as in the case of the expiring lease.
(6) If any person other than the outgoing lessee is declared the purchaser of such new lease, he shall, within fourteen days from the date of sale, pay over to the Public Trustee the amount of the value of the substantial improvements of a permanent character as fixed by the valuation before referred to.
(7) When the day arrives on which the terminating lease expires, or thereafter, if the Public Trustee is satisfied that the outgoing lessee has let the new lessee into quiet possession of the land, and that none of the improvements which were thereon when the valuation mentioned in this section was made have been destroyed or appreciably damaged, the Public Trustee shall pay over to the outgoing lessee the amount received by him from the incoming lessee as aforesaid.
(8) If any of the said improvements have been destroyed or appreciably damaged as aforesaid, then the value of the improvements so destroyed, or the cost of repairing such damage, shall be decided by the Public Trustee or some person appointed by him, and the amount so fixed, with the costs attending such decision, shall be deducted from the amount payable as aforesaid to the outgoing lessee, and, save the amount deducted for costs, shall be returned to the incoming lessee.
(9) Should no purchaser be found at such auction, then the Public Trustee may, at any time within twelve months thereafter, sell the new lease by private treaty; and if he fails to sell the same by public auction or private treaty for the space of one year, he may let the land for such term, at such rent, and upon such conditions as to him may seem reasonable.
Section 7 was amended, as from 31 August 1907, by section 10 Auckland Hospital Amendment Act 1907 (1907 No 1(L)) by inserting the words
“or this Act”.
Subsection (1) was amended, as from 31 August 1907, by section 10 Auckland Hospital Amendment Act 1907 (1907 No 1(L)) by inserting the words
“then or any proceeding”.
Subsection (3) was amended, as from 31 August 1907, by section 10 Auckland Hospital Amendment Act 1907 (1907 No 1(L)) by inserting the words
“together with the right of further renewal and all other rights thereby conferred, and so from time to time at the expiration of each further or renewed term on the same terms and conditions on which the original lease may have been granted hereunder or thereunder, but subject nevertheless to the fixing as herein provided at the end of each term of the rent payable during such further or renewed term”.
“five dollars per centum” in subsection (3) was substituted, as from 10 July 1967, for the expression
“five pounds per centum” pursuant to section 7(2) Decimal Currency Act 1964 (1964 No 27).