type of dealing specified in the announcements. Of the 165 regrants made during the year, 14 were made with premiums of less than $100,000, 127 with premiums of between $100,000 and $500,000, and 24 with premiums of more than $500,000. The total of these premiums and modes of payment were as follows:
By lump sum
---
No.
Total Premium
64
$21,108,077
By instalments under the pre-October 1960
terms
2
326,386
---
+
By instalments under the October 1960
terms
99
26,791,632
165
$48,226,095
39. Although as stated in paragraph 33 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 con- ditions 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 Director of Public Works, in accordance with legal advice, has calculated the new Crown Rent according to the full market value of the land (excluding buildings), subject to the user and development conditions imposed by the lease, at the date of renewal. The re-assessed Crown Rent is therefore computed on the basis of such full market value decapitalized over the new term of 75 years, at 5% per annum, with an addition made in respect of the zone Crown Rent applicable to the district in which the lot is situated.
40. Owing to the enormous increase in land values in the past few years strict adherence to the above basis of calculation 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 redevelop or, if he did not himself have the necessary funds, to sell the lot for redevelopment. 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
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