Resident leaseholders of Cornwall Park Trust properties are being forced to pay rents way above market rates, or be evicted with little or no compensation. The Trust Board has repossessed more than 20 homes, forcing families to leave with nothing. https://www.youtube.com/watch?v=vqVr_gYNfuQ#action=share
The effect on leaseholders’ lives has been tragic - with bankruptcies, marriage breakups and mental health issues as families lose their homes to the Trust.
Families are facing new rents of an average of $170,000 per year or be evicted with little or no compensation from the homes they bought, often with big debts still owing. To persuade leaseholders to re-sign for 21 years, the Board has offered a 7-year 'discount' to $103,000 - still far above the market rent of $45,000. Leaseholders will still be forced to leave.
The remaining leaseholders will also be evicted unless the Trustees update the lease as the other Trusts have done.
These kinds of 'Glasgow' leases were fair and quite common in the 1920’s but have been banned in Scotland and the UK due to the inequity and social harm they cause.
In 1993 the Justice Minister, Doug Graham’s Ministerial 'Lusk Inquiry' recommended that unless the Trusts make changes, legislation may be required. In response, these Trusts updated their leases. Cornwall Park escaped the enquiry and retained the 1920's lease.
In response, the Trusts updated their leases to:
1. stop forcing families from their homes with nothing;
2. stop charging higher than market rents;
3. provide market compensation if they leave.
4. offered the option to buy their homes at a fair price
The Cornwall Park Trust was not included and to this day refuses to update the leases despite many, many appeals from desperate leaseholders.
The only solution left is for the government to intervene as they did in 1992, and to legislate to force the Trustees to come into line with the other Trusts.
The current unelected Trustees are Adrienne Young-Cooper, Keith Smith, John Duncan and Alastair Carruthers.
We ask the Prime Minister to intervene immediately to prevent the Trustees from causing further social harm.
Visit the campaign website http://www.savecornwallpark.com/
Other links to media
https://www.nzherald.co.nz/business/cornwall-park-home-leaseholders-feel-sting-of-asb-showgrounds-fate-sharpen-fight-for-fair-rents/G2GFQI735PG55QSBXLYZIAKS3M/
https://www.youtube.com/watch?v=vqVr_gYNfuQ#action=share
https://www.nbr.co.nz/article/disgruntled-cornwall-park-lessees-take-it-streets-vy-148024
http://www.stuff.co.nz/business/money/9024096/Another-Cornwall-Park-house-abandoned
References:
Ministerial enquiry into certain perpetually renewable leases in Auckland, 1992, Anthony A. Lusk, QC: https://www.parliament.nz/resource/en-NZ/51SCLGE_EVI_51DBHOH_PET71710_1_A548025/20f38a863a82a74718c20638f5a4b223a085a761
Parliamentary petition on behalf of the Cornwall Park Leaseholders Association: https://www.parliament.nz/resource/mi-NZ/51SCLGE_EVI_51DBHOH_PET71710_1_A554431/0d30f99417a456bcd2ffe9442759e5e2625592f1
UK government considering making residential leasehold illegal: http://impression.co.nz/news/could-leasehold-become-illegal
