LAND AND HOUSING
175
conditions for new leases have already been agreed in a large number of cases, and other leases will become due for re-grant in the future. Premia for the new leases may, subject to certain conditions, be paid either in a lump sum or by instalments over an agreed number of years. The majority of lessees avail them- selves of the latter method of payment. For this reason the revenue in any one year is relatively small, but since payments continue to be made for upwards of 80 years, the total revenue involved is considerable. The 1960 terms provide for a maximum of 21 annual instalments and interest of 10 per cent. On re-grant, the boundaries of these lots are adjusted to conform with street improvement lines, etc, and where land is needed for major replanning schemes the leases will not be re-granted. In these latter cases the Govern- ment has announced its intention to pay ex gratia compensation for buildings.
The existing terms were confirmed during the year in reply to petitions calling for changes in the policy. Government also decided to introduce arrangements to assist owners of undivided shares in a lot for which a new lease was to be granted. These would allow premium for a re-grant in certain circumstances to be apportioned between individual share owners. New terms for the renewal of 75 years renewable leases were also announced during the year. They give the Crown lessee of an undeveloped lot the alternative of renewing either at a Crown rent based on the full rental value of the land without added lease covenants, or, if the lessee is pre- pared to accept a covenant limiting the development on the lot to that existing at the time of renewal, at a lower Crown rent.
There is a shortage of unleased Crown land in the New Terri- tories suitable for sale by public auction for concentrated develop- ment. Consequently there is much interest among developers in securing permission for the exchange of agricultural land for build- ing land, on payment of a premium. The amount of building land that can be obtained in this way depends upon the location of the site selected. In normal circumstances exchanges for industrial or high density residential purposes are only permitted where the agricultural land is within areas for which layout plans have been approved, and it is necessary for Crown lessees to surrender approximately five feet of agricultural land for every two feet of building land to be re-granted. In each case the premium payable