XN000022-1973-03-23 — Page 3

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Friday, March 23, 1973

In the case of leases expiring after June 30, 1973, the valuation

date will be either the date one year before the date of expiry or the

actual date of expiry, whichever is the most favourable to the lessee.

In order to safeguard the interests of property owners, the Crown Leases

Bill provides for expiring renewable leases to be renewed by law.

This will

be of particular help to the owners of flats or undivided shares in a

property who may be unable to secure the agreement of all the owners to renew.

Not infrequently one or more co-owners is away from Hong Kong

or cannot be traced. The Bill will ensure that the rights of owners are

preserved by the enactment of this legislation.

Concern

The spokesman said the Crown Leases Bill reflected the "Government's

concern at the effect which the exceptional high prices prevailing in the land market might have on the small flat owner, and especially the owner/occupier."

He noted that Government had already decided in 1972 to reduce the

level of renewal rents by 20 per cent and to phase them in over a period of

five years.

"The effect of these concessions," he said, "would be reduced if .

present day values were used; on the other hand by taking into account value

of the ground at July 1, 1972 property owners were being granted additional

relief."

The Crown Rent Premium (Apportionment) (Amendment) Bill provides

that the Land Officer may, in the case of lots or sections already developed

and sold off to individual flat owners, apportion the new rents or instalments

of regrant premium between the owners so that each flat owner will pay the

proportion of the rent or premium instalment of the whole lot or section which

the value of his flat bears to the total value of the lot or section.

The bill