Any person who does not own the freehold of, or who does not hold a licence or lease
Leasing with perpetual rights of renewal
from the Crown for, an area which, together with the area included in his application for a perpetual lease, does not exceed 640 acres, can apply for a lease.
Leases are submitted to public competition at an upset rental equal to 5 per cent, on
the capital value of the land.
The term of each lease is 30 years; renewal at periods of 21 years.
Surrenders are permitted with the consent of the Land Board.
The same as in the case of deferred payment lands.
Residence and improvement.
Any lessee holding a lease outside a gold-field shall have the right of purchase if he
Rights to acquire freehold.
shall have fulfilled all the conditions of [unclear: vement]
within the period of six years at the price fixed at the time when the least is granted, being not less than the capital value on which rent has been paid, at rental rate of 5 per cent. Advantage must be taken of the right to acquire the freehold within eleven years of the date of the lease.
Three years before the end of the term of the lease valuations are made by arbitration
of the then value of the fee-simple of the land and of all [substantial improvements. The lessee then elects whether he will accent a fresh lease for a further term of 21 years, at a rental of 5 per cent, on the gross value of the land after deducting the value of the improvements.
If the lessee will not accept a fresh lease on the new valuation, the lease is submitted to auction, and if another takes the place of the lessee he has to pay the value of the improvements to the outgoing lessee.