LandsD's response to media enquiries on land leases expiring in 2047
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According to the policy statement promulgated by the Hong Kong Special Administrative Region (HKSAR) Government in July 1997, leases not containing a right of renewal (excluding special purpose leases) may, upon expiry and at the sole discretion of the HKSAR Government, be extended for a term of 50 years without payment of an additional premium. Nevertheless, the extended leases are subject to a payment of an annual rent at 3% ratable value of the property at that date, the annual rent will be adjusted in step with any changes in the ratable value thereafter. For further details, please visit the LandsD's website (www.landsd.gov.hk/en/service/landpolicy.htm).
Since the establishment of the HKSAR, the LandsD has been dealing with matters related to the extension of leases after 1997 in accordance with the aforementioned policy. Leases extended in original terms and conditions have been extended without payment of additional premium but subject to payment of an annual rent. Various factors will be considered on lease extension, including whether the land is required for a public purpose upon expiry, or whether serious lease breaches are found.
Lease extensions or new leases of land with a term of 50 years currently granted by the LandsD obviously go beyond 2047. In the realm of land administration, the year of 2047 is not a "time limit". Of course, a large number of leases will be expired in 2047. The Government will have to make arrangement to deal with the significant caseload of lease extension applications at a suitable juncture.
Ends/Tuesday, September 13, 2016
Issued at HKT 22:23
Issued at HKT 22:23
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