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(a) Renewal and extension of sub-leases
All sub-leases, except those already extended beyond 8 November 1994 by mutual agreement registered in the Land Registry at any time prior to the date of the coming into effect of the legislation, should be renewed from the date they would otherwise have expired until 27 June 2047, ie., 3 days before the expiry of the Block Crown Lease on 30 June 2047.
(b) Payment of Government rent
The Government rent will be payable directly by the sub-lessees to the Government. The Tong will only be entitled to collect from the sub-lessees the amount of rent specified in the sub-lease and no other charges and fees. Starting from 1 July 1997, the amount of Government rent payable by the sub-lessees to the Government will be an amount equivalent to 3% of rateable value of the land.
(c) Consents to modifications and exchanges of sub-leased land
The Tong should be deemed to have agreed to be a party and shall be obliged to execute the necessary documentation for modifications or exchanges unless it can satisfy the Government that it has reasonable grounds for objecting to the modifications or exchanges.
The Tong should be allowed to charge sub-lessees no more than an amount equivalent to 10% of the premium charged by the Government for such modifications and exchanges in recognition of the Tong being the lessee under the Block Crown Lease and the fact that, but for the legislation, the Tong would not have been obliged to agree to enter into any modifications or exchanges of land sub-leased.
The aim will be to achieve through the legislation a fair and objective solution which recognizes as far as possible the legitimate interests of both the Tong and its sub-lessees. We hope to introduce the legislation into the Council in April 1995.
End/Wednesday, December 14, 1994