542 SCIENCE OF AGRICULTURE. Part II. 



,if2c^^t siua ought- to be paid for a lease granted on a single life aged thirty, to make four per cent and 

 get back the principal? . ,, ; , 



^ yi.' Fourteen years and" three quarters' purchase of the clear annual rent. ', ' '^"'^ * 



G, What sum ought to be paid for a lease held on two lives of twenty and ftiH^Syfei!}>^l'determinabIe 

 on the death of either, to pay five per cent, and get back the principal ? .^o;f' li-wiv f "j j' 



A. Ten years' purchase. \ - - a 



Q. What sum ought to be paid for a lease held like the last on two lives ofttmift itiSl^rty years, but 

 to continue during the existence of either of the lives, to pay five per cent and get tsack the principal ? 



A. Sixteen years' purchase. 



Q. What sum or fine ought a tenant to give for the renewal of four years lapsed in his lease often years, 

 in order to make seven i^er cent interest of his money and get back the principal F 



A. Two years and a quarters' purchase of the annual value or clear profit which he makes of the 

 holding. 



Q. A farmer is offered a lease during the life of a person aged thirty years, to what term cei-tain is that 

 considered equivalent ? 



A. Twenty-one years. 

 ". (i. In a' lease held originally on three lives, but of which one is dropped, the ages of the lives in pos- 

 session being forty and sixty ; what sum ought the tenant to i>ay for passing in a new life, aged fifteen, in 

 order to make five per cent interest and return the principal? 



A. Tliree years and a quarter of the clear improved rent or profit which he has in the lease. 

 '; Q. A. has an estate in land and houses let for 105/. per annum. He wishes to sell the reversion of this 

 rent after the death of his father aged sixty-five years, his wifeaged forty-one, and himself aged forty.three ; 

 required the smn that must be paid by the purchaser ? 



' A. The father's life is worth ten years; the wife's twenty; and his own eighteen years; say twenty- 

 one years ; as the probable period at which the property will fall to the purchaser of the reversion. Then 

 the value to the latter is the present value of an annuity of 105/. a year, due twenty-one years hence. This, 

 calculating interest at 51. per cent, is 761/. 5s., and at 4/. per cent 1155/. 



..' ' . ' _ -' . . , i > n ; ii; ; p ()"j / 1 j'f r ; 



3340. In. the vdimtion xxf frisehotd laiv^ed ;w-o;o6?rt^, the Cte^i'ifttiil'*ttltie W'^ first 

 he ascertained by a minute examination of every part of tile estate^* and' of every 

 internal and external circumstance affecting it. An estate may be neglected, or un- 

 derlet on short or long leases, or overlet by means of bonuses, or favourable conditions 

 given to the tenants ; or it may be burdened by parochial taxes : these, and a number 

 of other circumstances, require to be taken into consideration in determining its annual 

 value. The annual value is often different from the annual produce ; and therefore, in 

 |aking a cakulatidn of the sura to be paid' for an estate, the difference between them 

 forms an essential part of the data. Thus, an estate of the annual value of 100/. may 

 be let on a lease of which fourteen years and a half were unexpired for 80/.^ in which 

 99se there must b^ idedueted from the price the present .value of an aiinuitycrf" 20/. for 

 fourteen year^ dnd a half. Thus, if twenty-five years' purchase or 2500/. was the price 

 agreed on, there must be deducted 200/. 



3341. (/n determining the sum to be paidfoi; estates in perpetuity there are no guides of 

 univecsal-^pplicatiori but the stjite of the market and public opinion. HcnveveV, a sort 

 of abstract principle has been l^d doivn as applicable to this country, which it may be 

 Worthwhile to notice. N. Kent, 'a' land agent of much experience, says [Hints to 

 Gentlemeti of Landed Property, &c., 1793, p. 266.), "the want of a criterion to determine 

 the price of estate's creates doubt, .and doubt impedes the transfer; any thing, therefore, 

 that can aid the purpose of passing estates frcnn one person to Another with rtie greater 

 facnfE^,'ifi[iSly"b6" properly inti-oduccd here." Suppose then tliat the gradual scale, by 

 way of an outline, be taken up thus : When the funds stand pretty steady at four per 

 qent. the standard of mortgages may be considered at four and a half : the fee simple 

 pn the nett return of land ought then to be current at tluxje ; copyholds of inheritance 

 upon a fine certain, at three and a half; copyholds, with a fine at the will of the, lord, at 

 ^our. This general rule is short, and may be i-egistered in the mind of every man of 

 business. At the same time Kent states, that '< nineteen times out of twenty, estates 

 are bought and sold upon round numbers.", 



3342. In makinii calculations of the v^ilue of estates, the following rules deserve notice :- 

 In order to know the nuipber of years' purchase that ought to be given for an estate in 

 nerpetuity, according to the several rates of interest which the purchaser may wish to 

 make of his money, it is only necessary to divide 100 by the rate of interest required, 

 and the quotient will show the number of years' purchase that ought to be given. 



^ 3343. With respect to the value of freehold estates, or the gross sum which ought to be 

 paid for the same, Bailey obsjerves, we may eitlier multiply the nionber of years' purcliase, 

 found as above, by the annual rent of the estate, or we may " multiply tlie annual rent 

 of the estate by 100, and divide the product by the rale of interest which we propose to 

 make of our money; the quotient will be the sum required." For example, the sum 

 which ought to be paid for a ffeehold estate of the clear rent of 90/. per aimum, so that 

 the purchaser may make 4 per cent, interest of his money, is found either by multiplying 

 25 by 90, which gives 2250/. for the sum required ; or by multiplying 90 by 100, which 

 produces 9000, and then dividing this product by 4, which gives 2250/. as before. The 

 first way is the most expeditious, where the number of years' purchase is an even quan- 

 tity ; but the latter will be found the most ready, where the number of years' purchase is 

 a fractional quantity, or is not precisely known. Thus, the gross sum which ought to be 

 paid for a freehold estate of the clear rent of 150/. per gimiim, in order tliat the purchaser 

 may make 7 per cent, interest, of his iiaonev. is found by multiplying 150 by 100, which 



