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lots have since been sold. Many of these have been subdivided and others resumed or surrendered. The Crown rent paid in respect of leased land in the New Territories in the financial year 1962-3 was $398,111.57.
GOVERNMENT LAND TRANSACTIONS
Apart from sales of Crown land by auction or private treaty, Government land transactions include renewal, grant of new leases and modification of Crown leases, exchanges, pier leases, tem- porary occupation permits and sales by tender.
The standard form of Crown lease for land in the ceded territory, has, since 1898, been for a term of 75 years renewable for a further 75 years. These leases are renewable at the option of the lessee on the same terms and conditions contained in the original lease subject to 'such rent as shall be fairly and impartially fixed by the Director of Public Works as the fair and reasonable rental value of the ground at the date of such renewal'. This is the full economic annual value of the lessee's interest in the land; it may be, and usually is, many times the zone rent or the existing Crown rent. In 1963 the Government introduced a new policy designed to lessen the effect of this sudden increase in respect of lessees whose land is under-developed or developed by buildings subject to rent restrictions who do not wish to redevelop their property immediately on renewal of the lease. Such lessees can now elect to surrender their lease and take a new lease restricted to the existing development with the revised Crown rent based on the land value as developed. In the event of the lessee wishing to redevelop at a later date he would then have to pay a premium as a capital sum, representing the increase in land value arising from the removal of the restrictions previously imposed.
Another large group of Crown leases mainly issued between 1865 and 1898, largely in Kowloon, are for a 75 year term absolute. In these cases, the Government has been prepared, as a concession, to waive its legal rights, and to grant a new lease to the sitting tenant except when the land is required for a public purpose. Lessees can apply for a new lease at any time within 20 years of expiry and the premium payable is based on the value of the land at date of application, an appropriate allowance being made
HONG KONG PUBLIC LIBRARIES
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