ENG-1971 — Page 162

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LAND AND HOUSING

with 10 per cent of the realised price being payable within one month of the auction, the balance being payable by 10 equal annual instalments bearing interest at 10 per cent a year. Land for special housing projects, for public utilities, schools, clinics and approved charitable purposes is usually granted by private treaty. The premium charged in such cases varies from nothing for non-profit-making schools up to the full market value and payment by instalments for public utilities.

To assist owners of industrial lots where the premium is payable by instalments, there is a concession which, subject to certain con- ditions, permits the sub-letting of parts of the building without having to pay the outstanding balance of premium.

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In recent years the terms of considerable numbers of 75-year Crown leases have expired. Many of these are non-renewable leases but unless the land is required for a public purpose, it is government policy to negotiate a new lease term with the former lessee. The premium payable represents the full market value of the land less the buildings. However the lessee of undeveloped land with pre- war property, if he does not wish to pay the premium and redevelop the property, may also hold-over his land for a period of five years from 1968 paying instead an annual rental equivalent to the net income arising from the property, while retaining his right to apply for re-grant at a premium based on the value of the land at the end of the hold-over.

In the past difficulties have arisen over re-grants of land formerly held on expired non-renewable leases in multi-ownership, where the owners collectively have been unable to agree with the Government's terms of re-grant. The enactment of the Crown Rent and Premium (Apportionment) Ordinance of 1970 will however enable the Government, when a collective agreement between the owners is not possible, to grant the new lease to the Colonial Treasurer Incorporated for subsequent apportionment of the interests under the ordinance and assignment of the individual interests to the previous owners. These negotiations and the necessary procedure are extremely complex, and a trial run on one re-grant was still in process at the end of the year.

The number of 75-year renewable leases falling due for renewal is increasing and a Consolidated Statement of the terms and condi- tions for renewal of these leases has been issued. The statement divides lots into two groups: the first group being lots in the New Territories including those Survey District Lots in New Kowloon