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LAND AND HOUSING
payable represents the full market value of the land, less the buildings. The premium is normally payable by up to 21 annual instalments, with interest at 10 per cent per annum. Where a property is required for a public purpose on the expiration of a non-renewable lease, the government normally pays ex-gratia compensation for any building on the land at the time it resumes possession.
In June 1973 the 75-year renewable Crown leases of about 5,000 lots and sections of lots in New Kowloon involving about 40,000 owners fell due for renewal. In addi- tion, renewable Crown leases of about 200 lots and sections of lots in Kowloon had already fallen due for renewal but had not been renewed because of problems asso- ciated with multiple ownership.
In accordance with their terms these leases were to be renewed at a reassessed Crown rent being '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'. The method of determining such rents previously adopted by the Director of Public Works was to assess the rent on the basis of the value of the land at the date of renewal.
However, it was decided by the government in 1973, in view of the sharp rise in land prices in late 1972 and the early part of 1973, that the practice of determining the reassessed rent in accordance with the provisions of Crown leases would produce an unacceptably high revised rental and should be abandoned, and that all renewable Crown leases should be statutorily renewed at an annual rent equal to three per cent of the rateable value of the property. The necessary legislation was passed as the Crown Leases Ordinance 1973. Following the enactment of this ordinance, work is proceeding on the preparation of Crown rent returns for those 5,000 lots and sections of lots in New Kowloon which were statutorily renewed in July 1973. It is hoped that this substantial backlog will be cleared by March 1975 when estimated revenue accruing from these cases, together with other statutorily renewed leases arising since, should amount to about $15 million annually.
Land Office
The issue, renewal, variation and termination of Crown leases is dealt with by the Land Office, which is a branch of the Registrar General's Department. The Land Office also has responsibility for the registration of all instruments affecting land; the settling and registration of conditions of sale, grant and exchange of Crown land; the granting of mining leases; and for giving legal and other advice to the government generally on matters relating to land.
The system of registration, introduced in 1844, is broadly similar to that formerly in operation in the Yorkshire Deeds Registries in England. The Land Registration Ordinance provides that all instruments registered under it shall have priority accord- ing to their respective dates of registration, and that unregistered instruments, other than bona fide leases at rack rent for any term not exceeding three years, shall be null and void as against any subsequent bona fide purchaser or mortgagee for valuable consideration. Registration is therefore essential to the protection of title, but does