of this type the company also has to apply for an Exclusion Order under the Landlord and Tenant Ordinance.
38. The premium chargeable for a regrant is calculated according to the area and location of the lot, the user and development restrictions placed upon it, and the length of the existing term, if any, still to run. In certain cases defined in a Government announcement made in Octo- ber 1960 regrant premiums may be paid by up to 21 equal annual instal- ments incorporating interest at 10% per annum, but with certain excep- tions specified in a further announcement in June 1962, the entire balance of premium has to be paid in the event of an assignment or any other type of dealing specified in the announcements. Of the 217 regrants made during the year, 27 were made with premiums of less than $100,000, 175 with premiums of between $100,000 and $500,000, and 15 with premiums of more than $500,000. The total of these premiums and modes of payment were as follows:
By lump sum
No.
Total Premium
91
$20,151,912
By instalments under the pie-October 1960
terms
3
1,676,595
By instalments under the October 1960
terms
123
25,953,845
$47,782,352
39. Although as stated in paragraph 32 the practice of issuing 75 year leases renewable for a further 75 years was not instituted until 1898, there are a few cases where owing to a right of renewal having been engrafted on to an original non-renewable 75 year lease as part of conditions of modification of a lease or of extension to a lot, the original term either has already expired or is due to expire shortly. The renewal clause in the lease provides that on the expiration of the original term a new lease will be granted 'at such Rent as shall be fairly and impartially fixed by the Director of Public Works as the fair and reason- able rental value of the ground at the date of such renewal'. The Director of Public Works, in accordance with legal advice, has calculated the new Crown Rent according to the full market value of the land (excluding buildings), subject to the user and development conditions imposed by the lease, at the date of renewal. The re-assessed Crown Rent is therefore computed on the basis of such full market value decapitalized over the new term of 75 years, at 5% per annum, with an addition made in respect of the zone Crown Rent applicable to the district in which the lot is situated.
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