until the owner is ready to redevelop the lot. This is because the regrant premium is based on the full market value of the land exclusive of the buildings thereon, and as the value of land in all areas is still high, it is only by redevelopment that the owner can obtain an economic return on his investment.
37. The premium chargeable for a regrant is calculated according to the area and location of the lot, the user and development restric- tions 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 October 1960 regrant premiums may be paid by up to 21 equal annual instalments incorporating interest at 10% per annum, but with certain exceptions specified in 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. While formerly in cases where a building has been split up into separately owned flats the regrant premium had to be paid in a lump sum if any one of the flat owners had assigned his flat within five years of the date of expiry of the lease or application for a new lease, the premium may now be paid by instalments as announced by Govern- ment in February 1967. 45 regrants were made during the year, 18 with premium of less than $100,000, 24 with premium of between $100,000 and $500,000, and 3 with premium of more than $500,000. The total of these premiums and modes of payment were as follows:
No.
Total Premium
By lump sum
14
$1,526,366
By instalments under the October 1960 terms...
31
5,908,716
45
$7,435,082
A new concession to owners of 75 year non-renewable leases expiring before 31st December 1971 was announced by the Government on 29th March 1969. In cases where the lot is considered by the Director of Public Works as reasonably developed, judged by the standards at the time of development, but not sufficiently developed to give a return to the owner to enable him to pay the normal regrant premium, the owner will be allowed to retain his lease for a further five years after the expiry date if he does not wish to take an immediate regrant of his land. An owner granted this holding-over concession will have to pay a new rent representing the fair and reasonable rental value of the
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