LEASE. 



as the values in the Table denote merely 

 the number of years purchase, it is evi- 

 dent thai the sum deduced therefrom 

 will vary according as the annual rent 

 of the e'state varies. On this point, aif- 

 ficuliies will sometimes arise ; for the 

 value of an estate, depending very often 

 on some real or supposed advantages, 

 or on some local or personal recommen- 

 dations, will, in many instances, occa- 

 sion .1 difference of opinion ; and, in most 

 cases, be a matter of some uncertainty. 

 Some annual rent must, however, be fix- 

 ed upon as the full sum for which the 

 estate would let, and this rent being 

 multiplied by the sum in the Table, cor- 

 responding with the term of years, gives 

 the present value of the lease. Thus, 

 if a house lets for 50/. per ann to find 

 the value of a lease thereof for 21 years, 

 reckoning interest at 6 per cent, multi- 

 ply 50 by 11,764 (the sum in the ta- 

 ble corresponding with 21 years) which 

 gives the answer 588/. 4s. It frequently 

 happens that the rent of an estate is 

 charged with some annual expense, such 

 as a reserved or quitrent, the payment 

 of an annuity, taxes, and the like ; in 

 sucli cases, the various charges must be 

 first deducted from the rent received, 

 and the remainder, or nett-rent, only be 

 multiplied by the number of years pur- 

 chase in the table. 



Example. A person holds a lease, for 

 35 years, of premises which let for 120/. 

 per annum, out of which he pays 17/. 

 10s. for ground-rent, and 4/. 106-. for 

 land-tax ; what should he require for 

 the lease, allowing the purchaser lo make 

 7 per cent, interest of his money ? The 

 payments to which the rent is subject be- 

 ing deducted, leave a nett-rent of 98/. which 

 multiplied by 12,948 (the sum in the ta- 

 ble corresponding with 35 years) gives 

 1268/. 185. 



To find the annual rent corresponding 

 to any given sum paid for a lease, divide 

 the sum by the number of years pur- 

 chase in the table against the term of the 

 lease, and under the rate of interest in- 

 tended to be made of the purchase money; 

 the quotient will be the annual rent re- 

 quired. 



Example. A person is asked 1250/. for 

 a lease of 30 years, what annual rent is 

 equivalent thereto, allowing the purchaser 

 to make 6 per cent, interest of his money ? 

 Divide 1250/. by 13,765, the years pur- 

 chase in the table, under 6 per cent, in- 

 terest, and the answer is 901. 16s. 2d. 



It frequently happens that a tenant is 

 desirous of having the term of his lease 



renewed before the old lease expires ; and 

 if the estate has increased in value since 

 it has been in his possession, it is com- 

 mon, in such cases, for the landlord to de- 

 mand either an increase of the rent, or a 

 gross sum called a fine, to be paid down 

 in one immediate payment for such re- 

 newal. In many leases, particularly those 

 held of colleges and other public bodies, 

 it is covenanted, that renewals shall be 

 granted at the end of a certain number of 

 years, on payment of a fine to be then 

 agreed upon between the parties; the an- 

 nual rent of the estate continuing the 

 same. This fine is often a subject of dis- 

 pute, arising principally from a difference 

 of opinion respecting the improved annual 

 value of the estate, or respecting the rate 

 of interest, which each party is endea- 

 vouring to make of his money. The for- 

 mer, in some cases, is liable to uncertain- 

 ty ; but, if the latter is once agreed upon, 

 the value of the fine, which ought to be giv- 

 en for renewing a lease of any yearly rent, 

 can, in all cases, be exactly determined. 



It is well known, that when a lease is 

 intended to be renewed, such lease is sur- 

 rendered or delivered up, and anew lease 

 of the estate is granted for a term of years, 

 which includes both the unexpired term 

 of the old lease, and the additional tern, 

 proposed to be renewed. Now the value 

 which ought to be given for the grant oi 

 such additional term, will evidently be 

 be equal to the difference between the 

 value of the lease for the whole term, ami. 

 the value of the unexpired part thereof, 

 of which the tenant is in actual possession . 

 thus, if a person holds an unexpired term 

 of twenty years in a lease, and is desirous 

 of having ten years more added to it, or 

 of having a new lease granted for the 

 term of thirty years ; the fine, or gross 

 sum, which he ought to pay for such re- 

 newal, will be equal to the difference be- 

 tween the value of a lease for the whole 

 term of thirty years, and the value of a. 

 lease for the unexpired twenty years ; this 

 will be easily found from the preceding 

 table. 



Example. What fine ought to be given 

 to the landlord for adding seven years 

 more to a lease, of which 14 years are un- 

 expired. ; allowing the tenant 6 per cent, 

 interest for his money ? The whole term 

 for which the new lease is to be granted 

 is 21 years, and the value of a lease for 

 this term, is by the table under 6 per 

 cent, interest 11,764; the value of a lease 

 for fourteen years is found in the same co- 

 lumn to be 9,29, and this subtracted 

 from the former sum leaves 2,469 for the 



