Registrar-Generals-Department-Annual-report-1962-1963 — Page 17

29. The 429 Conditions of Regrant registered included a large number of regrants under the terms of the October 1960 Government announcement, under which the former policy of allowing premiums to be paid by instalments with interest at 5% per annum over the unexpired residue of the existing term together with the whole of the new term of 75 years, was superseded by a new policy under which the regrant premium could be paid by instalments only in those cases where there had been no assignment of the existing lease after 18th October 1960 and within five years of the date of expiry of the lease or applica- tion for a new grant. The maximum period over which the premium could be paid by instalments was reduced to 21 years, the rate of interest was increased to 10%, and provision was made for the balance of premium to be paid in full in the event of an assignment or any other dealing of the types specified in the announcement. The last mentioned provision was found to be likely to cause hardship in certain cases involving flats, and on 5th June 1962 the Government issued an announcement that where a lease had been renewed under the October 1960 announcement and the premium was being paid by instalments it would no longer be necessary to pay the whole balance of the premium on the sale of any flat in the building where the building was already sub-divided into separately owned flats before the application for the new lease. Where, however, the building is replaced by one with increased accommodation the whole balance of the premium becomes payable on the first dealing with the redeveloped property.

30. Applications may be made for the regrant of land held under a non-renewable 75 year lease any time within 20 years from the date of expiry of the term, but applications for regrant are not usually made until the owner is ready to redevelop the lot. This is because regrant premiums are based on the full market value of the land exclusive of the buildings thereon, and as the value of land is in all areas very high, it is only by redevelopment that the owner can obtain an economic return on his investment. In practice many owners are obliged to sell their land to land investment companies, which are able to finance the payment of the premium and the cost of redevelopment. In most cases of this type the company also has to apply for an Exclusion Order under the Landlord and Tenant Ordinance.

31. The 429 Conditions of Regrant registered in the year provided for payment of the premium as follows:

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