HBRC is currently offering a 17.5% discount to residential leaseholders wanting to freehold and a 10% discount to investor leaseholders, but the freeholding process must be underway by 30 June 2012 to qualify.
For more information on the discounts available take a look at the latest newsletter to lessees of Napier leasehold property. Any leaseholder wanting specific advice on their property should contact HBRC Leasehold staff on 06 835 9212 or email leasehold@hbrc.govt.nz.
HBRC is also offering additional assistance to cross lessees. The assistance includes:
- HBRC will cover the legal costs to create the new leases affected by the subdivision and will cover the valuation fees on the new leases when drawn up.
- The freeholding price will be calculated as a portion of the value of the original land area.
Every leasehold property is different – you are in different markets, different locations, you are not all residing on your properties, and your leases are at different stages of the 21 year lease term.
This means it will be important to make an appointment with our Leasehold staff to discuss freeholding your property and the discounts for your property.
HBRC offers continued support to leaseholders, including information on the financial support and assistance available, if you are having difficulties with lease payments. If you need it, our Finance team can help you to prepare an application to Work and Income New Zealand for receipt of the Government’s Accommodation Supplement. Contact HBRC Leasehold staff 06 835 9212 or email leasehold@hbrc.govt.nz.
Lessees interest – represents the value for the lessee because HBRC can only sell to the lessee and the lessee has a perpetual right to renew for further 21 year periods.
Market value – what the land would be worth if it was vacant.
Lessors value – value to the HBRC of the property based on the future cash flows discounted back to present value.