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Wednesday, August 3, 2011
and ready to go
19 dunlop rd. Onekawa
Discount causes controversy
Suffering: Phil Hathaway is not
happy with the new 17.5 per cent
discount the Hawke's Bay Regional
Council is offering him if he buys his
leased Napier section.
Raking in cash from residents in
distress is unacceptable, regional
councillor Alan Dick has told a
meeting, to cries of hear, hear
from the public gallery.
About 30 residents who leased
land under their homes from
Hawke s Bay Regional Council
were at last week s meeting for a
debate on whether they should be
offered a 17.5 per cent discount on
land value if they bought their
The increased discount, up from
5 per cent, was approved five
votes to two . It equates to 17.5
per cent for those living in their
homes, 10 per cent for landlords.
About 700 properties had been
freeholded since legislation
changes in 2002, with about 1000
still on the council s asset list, said
regional councillor Neil Kirton.
He believed the new discount
would encourage about half those
still leasing to freehold their
properties. Those still left would
be the ones who could not afford to
buy, or in multi-cross lease
situations where neighbours could
not agree on freeholding.
Land rents had risen sharply
over the past 10 years as 21-year
leases came up for renewal, on the
back of steeply rising land values.
Many had suffered 1000 per cent
rent increases, said Mr Kirton,
citing jumps of $1200 a year to
He was urging those who had
any chance of buying to look at the
option carefully and he was plan-
ning information meetings for
residents, lawyers and real estate
My advice is that [residents]
would be better paying off an
increased mortgage to buy the
land than paying rent.
He said the next step would be
to decide how to help those who
genuinely could not pay the lease
or an increased mortgage, or were
in a cross-lease situation where
neighbours could not agree.
The public reaction to the
increased discount was not all
Phil Hathaway, who owned his
own home plus some rental
properties on leased land, said the
basic premise the regional council
used was wrong.
Separate to the purchase dis-
count, homeowners also received a
leaseholder s interest of up to 30
per cent depending on where they
were in their 21-year lease cycle --
a feature termed a Glasgow lease.
Mr Hathaway said his research
showed leaseholder interest
should be more than 80 per cent.
Their methodology is wrong. In
my opinion, council believes its
interest is 100 per cent and that it
is being generous; I have docu-
mentation that I believe shows
something entirely different.
With the current entrenched
attitudes of councillors and staff, I
fear the only resolution to this
issue will have to be found in a
court of law. If that is in fact the
case, so be it.
Happy with the new discount
was Aaron Eastwood, who bought
a leasehold house in November
and was working on doing it up.
The 24-year-old apprentice said
leasehold homes were cheaper
than freehold houses, and it was
the only way he could afford to
buy. He would be looking at
freeholding the land as soon as
possible, and said the 17.5 per
cent discount would help.
His mum, Heather Eastwood,
said while she was happy for her
son, the discount would do little to
help her sister.
She was on minimum wage, and
lived in a home cross-leased with
two other properties. It would be
difficult for any of the three to
come up with the funds to buy
their land, Mrs Eastwood said.
Money from the sale of the
properties would be invested in
infrastructure across the region,
the meeting heard.
Mr Kirton said as well as the
pain the leases caused affected
residents, the 3.2 per cent rate of
return was unacceptable in the
current investment environment .
Winning angle: Recent annual
prizegiving at the HB Sports Fish-
ing Club saw three young local
anglers -- Nathan Bath (16 years),
Dylan Woolhouse (19), and Zane
Woolhouse (11) -- scoop the
They won the following trophies
during the 2011 Nationals:
Wasabi Trophy (Top Skipjack
Team for NZ) Dylan and Nathan.
Dylan was awarded 1st NZ Cham-
pion Fly Fishing Section, Cham-
pion NZ Angler Skipjack Section
2nd and 3rd, Skipjack NZ Lin-
eweight Angler 2nd and 3rd.
Nathan was awarded Skipjack
Champion Junior Angler 1st, 2nd
Zane was awarded Heaviest
Gamefish caught outside of
Hawke's Bay waters, Nationals
Heaviest Gamefish for Hawke's
Bay and NZ Champion Lineweight
Angler for a Striped Marlin, which
weighed in at 165.6kg.
Halsbury Chambers, 74 Tennyson St, Napier Ph 835 5553 Fax 833 7443 e-mail firstname.lastname@example.org
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