(1) The Valuer-General shall, on application in that behalf by the Commissioner, cause a valuation to be made in accordance with the provisions of the Rating Valuations Act 1998, of the capital value of the land comprised in the lease as at the date of the notice of the lessee's intention to purchase the fee-simple, and also of any improvements effected by the lessee and of any other improvements to which the lessee is entitled.
(2) From the capital value ascertained by such valuation there shall be deducted the value of the improvements aforesaid. The resulting sum is hereinafter referred to as the present unimproved value.
Provided that the lessee shall have the same right of objection to a valuation made pursuant to subsection (1) of this section as he would have in respect of a valuation made under the Rating Valuations Act 1998; and where, pursuant to any such objection, the appropriate Land Valuation Tribunal has determined a new value for the capital value of or improvements on the land or both, the present unimproved value shall be calculated accordingly.
(3) For the purposes of this section the annual rent reserved by the lease shall be deemed to be five per centum of the original unimproved value of the land comprised in the lease, and the original unimproved value shall be determined accordingly.
(4) In no case shall the present unimproved value be less than the original unimproved value.
(5) An actuarial computation shall be made of the present value of the Crown's interest in the land. The rate of interest for the purpose of such computation shall be five per centum per annum, payable half-yearly.
(6) The present value of the rent for the unexpired period of the term of the lease shall be ascertained by actuarial computation, and the rate of interest for such computation shall be five per centum per annum, payable half-yearly.
The proviso to subsection (2) was inserted, as from 23 December 1977, by section 2(1) Rotorua Town Lands Amendment Act 1977 (1977 No 174).
References to Rating Valuations Act 1998, being the corresponding enactment, were substituted for references to Valuation of Land Act 1951, as from 1 July 1998, by section 53 Rating Valuations Act 1998 (1998 No 69).
The Valuation of Land Act 1925 was substituted, as from 1 April 1926, for a reference to the Valuation of Land Act 1908 by section 60 Valuation of Land Act 1925 (1925 No 31). This reference was in turn substituted, as from 1 January 1952, by a reference to the Valuation of Land Act 1951 by section 50(1) Valuation of Land Act 1951 (1951 No 19).