Owners regain whenua after more than half a century under perpetual lease
Owners of Māori blocks in Otorohanga regain control of their whenua following a momnumental perpetual lease deal.
Through support from the Māori Trustee, owners of Waikowhitiwhiti F1 and Waikowhitiwhiti F2B1 in Ōtorohanga have regained control of their whenua following the purchase of a perpetual lease.
Although the owners retained title to the whenua, the perpetual lease gave the lessee the right to renew forever. Records trace the lease back to 1968 and it was likely in place earlier.
Spanning two adjoining blocks, one with a house on it, the Māori Trustee administers both trusts as statutory trustee.
Māori Trustee Dr Charlotte Severne describes perpetual leases as an enduring injustice: “They renew generation after generation while the owners’ choices become narrower and narrower.”
Purchase strengthens whakapapa connections
Peter Robin (Ngāti Maniapoto, Ngāti Kahungunu) is a trustee of the Northcroft-Robin Whānau Trust which owns Waikowhitiwhiti F1. He was in his early twenties when he succeeded his grandfather Ihakara Te Tuku Rapana’s whenua in the 1960s.
Peter hopes that the purchase means more of his whānau are interested in taking up the responsibilities of a whenua Māori owner.
“The legacy that my grandfather left me I will always be thankful for. It’s really about being able to put whakapapa together.
“Purchasing that property on behalf of the owners is something that would never be heard of some time ago."
Like Peter, Sidney Lewis who is an owner of the adjacent Waikowhitiwhiti F2B1 block which the current house sits on, links to the whenua as Ngāti Raukawa and Ngāti Maniapoto uri.
"Whakapapa is important because it says where you belong going right back to the beginning. It gives us a standing and belonging to the whenua.
"We are grateful for the help from Te Tumu Paeroa and Māori Affairs (Te Puni Kōkiri). The whole family is quite excited about it."
Residential property on Waikowhitiwhiti F2B1 and Waikowhitiwhiti F1
What is a perpetual lease?
Perpetually renewable leases can separate legal ownership from the ability to possess and use whenua for generations. Māori owners retain title to the underlying land, but the lease limits their practical control over it.
Under the lease arrangements outlined for the Waikowhitiwhiti blocks, the lessee had the right to renew every 21 years in perpetuity. The rent remained low as it was based purely on the unimproved value of the land and excluded the value of the house and other improvements.
“Perpetual leases can leave Māori owners holding legal title to their land while having little practical say over its use,” says Dr Severne.
Just 20 working days to act
When a lessee seeks to sell their interest, in some circumstances it can trigger a statutory right of first refusal which gives the landowners the first opportunity to purchase it. But the window is short – just 20 working days.
The Māori Trustee met with owners to discuss the proposal in June, due diligence followed, and the Māori Trustee was able to exercise the right of first refusal on behalf of the trusts.
It’s a really challenging timeframe, explains Dr Severne.
“In that time, we must engage the owners, secure the funding and complete the legal, property and valuation work. Twenty days sounds generous until you try to organise owners, lawyers, valuers and money at the same time. Then it feels more like twenty minutes.
“We met the deadline, but it took a team of about six working full-time for those 20 days, backed by our legal expertise, property and valuation skills, and a level of determination that could fairly be called stubborn.
“There were many tears when we succeeded - relief, pride and the knowledge that, this time, the whenua had won.”
For the first time in many decades, owners now have the ability to make decisions about the whenua and its future use, management and development for the benefit of present and future generations."