LAW OF PROPERTY ACT (1925) AMENDMENT. (Hansard, 21 January 1931)

§ Captain BOURNE

I beg to move, That leave be given to bring in a Bill to amend the provisions of the Law of Property Act, 1925, relating to leases for lives. I will not detain the House for more than a few minutes. Under Section 149 of the Law of Property Act, 1925, the 188 object of which was to abolish leases for lives, it is provided that where a lease has been granted for lives and one of the persons in whose name the lease has been granted dies, it should be converted into a lease of 90 years. The House is no doubt aware that it has been the custom in many parts of the country to grant leases on the lives of three or more people, very often people having no par- 189 ticular interest in the property, and in point of fact it is a matter of speculation as to whether a lease so granted will not last longer than one for the normal period of 99 years. It is often possible on the death of one of these persons to put in a new life. This was abolished by the Law of Property Act, 1925, but when this particular Section was drafted it was overlooked that it is customary in some parts of the country to grant agricultural leases for a much shorter period than the time prescribed in the Section.

Very often these leases are granted for terms of 14 years or "to terminate on the death of the lessee." It is understood that the effect of Section 149 of the Law of 1925 in the case of such an agricultural lease of 14 years is to convert that lease into one of 90 years, if the lessee dies before the expiration of the term of the lease. The reason why the provision "to terminate on the death of the lessee" is frequently put into agricultural leases is that on the death of the farmer who has leased the farm his capital will be divided amongst his family, and very often none of the children has sufficient capital to run the farm; that is the reason why for mutual convenience this particular provision has been put into such leases. It was never the intention of the Legislature that leases of that kind which terminate on the death of the lessee should become converted into a lease of 90 years. The object of the Bill is to amend that anomaly, and I hope the House will allow the Bill to go forward so that the matter may be discussed in the appropriate manner.