Call to act fast over discount freeholds

Pippa Brown | Friday, January 20, 2012 10:03

The council is offering a 17.5 per cent discount to residential leaseholders wanting to freehold and a 10 per cent discount to investor leaseholders, but freeholding settlement must be completed by June 30 to qualify.

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Time is running out for Napier leasehold landowners to take up the Hawke's Bay Regional Council's offer of a substantial discount to freehold their properties.

The council is offering a 17.5 per cent discount to residential leaseholders wanting to freehold and a 10 per cent discount to investor leaseholders, but freeholding settlement must be completed by June 30 to qualify.

The authority will also contribute up to $1000 towards the legal fees to freehold cross-lease sections.

In the last six months 75 property owners have taken up the offer.

The council has a portfolio of about 650 leasehold land properties and 950 lessees. Its current value is approximately $73 million.

The portfolio provides an ongoing source of non-rate revenue to the council and the funding stream continues to benefit the region.

However, the council wants to reinvest in regional infrastructure projects that will deliver long-term economic and environmental benefits to the entire region, such as the Port of Napier and potential water storage projects.

Spokesman John Keenan is encouraging anyone considering freeholding their property, during the discount period, to contact the council's leasehold land staff now.

"To qualify for the substantial discounts the sale and purchase must be completed before the end of June, and to do that we need to start work as soon as possible on the paperwork," he said.

"This is a great opportunity for leasehold landowners to freehold their properties at a much reduced rate."