The Lands Department has been dealing with matters related to the extension of leases after 1997 in accordance with policy since the establishment of the Hong Kong Special Administrative Region.
The department issued the statement tonight in response to media enquiries on Legislative Council member-elect Prof Yiu Chung-yim’s remarks on land leases expiring in 2047.
The statement said, according to the policy statement promulgated by the Government in July 1997, leases not containing a right of renewal may be extended for a term of 50 years without payment of an additional premium.
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.
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.
The statement said lease extensions or new leases of land with a term of 50 years currently granted go beyond 2047, which means the year 2047 is not a "time limit".
It also noted that a large number of leases will be expired in 2047 and the Government will deal with the significant caseload of lease extension applications at a suitable juncture.
