A further concession to owners of 75-year non-renewable leases expir- ing before 31st December 1971 was announed 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 land and building at the date of expiry of the lease. During the holding-over period he may sublet the premises or assign them as a whole with the right to apply for a regrant. At any time during the holding-over period, an owner can apply for a regrant for a term of 75 years from the date of expiry of the original lease.
42. Although as stated in paragraph 34 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 reasonable rental value of the ground at the date of such renewal'. The rent has therefore to be fixed by reference to the rental value of the ground irrespective of what buildings actually stand thereon, and as there has been an enormous increase in land values since such leases were granted, strict adherence by the Government to its legal rights would mean that in every case where a property was not developed to the full extent permitted by the lease the owner would, notwithstanding that the building on the lot was in good condition, be obliged, in order to be able to meet the greatly increased rent, either to re-develop or, if he did not himself have the necessary funds, to sell the lot for re-development. To meet this situation Government gives the lessee the choice of renewing on the normal terms or of surrendering his existing lease and receiving a new one in which development would be restricted to that existing on the property at the time. In that case the rent would be re-assessed on the basis of the restricted development and so be considerably lower. If at a later date
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