Extension of Government Leases Ordinance to come into force tomorrow

The Extension of Government Leases Ordinance (the Ordinance) will come into force tomorrow (July 5).

The Ordinance provides a standing statutory mechanism for extending general purpose leases (i.e. general commercial, residential and industrial leases) upon their expiry in batches. The Lands Department will publish the “Extension Notice” in the Gazette six years before the expiry of each batch of land leases to extend them. If a land lease is not included in the “Non-extension List” published on the same day, it means the land lease will be extended.

The Ordinance manifests the solid safeguards to Hong Kong under the steadfast and successful implementation of “one country, two systems”, and creates more favourable conditions for Hong Kong to pursue economic growth. Streamlining the arrangement for lease extension ensures that the significant number of upcoming expiring land leases could be handled in an efficient and orderly manner. It also saves time and costs of owners, bringing tremendous convenience to the public and businesses.

The Ordinance upholds the land policy made in July 1997. Land leases will generally be extended for 50 years without payment of additional premium, but subject to payment of 3% rateable value as annual government rent.

For land leases which are extended, all original encumbrances, interests and rights (e.g. mortgages) under the lease will be carried forward. Owners do not need to go through any procedure, which saves them from the cumbersome procedures of executing lease extension documents individually with the Government and re-arranging mortgages as in the past.

The Lands Department will publish the first “Extension Notice” tomorrow. All land leases expiring from tomorrow to the end of 2030 will be extended.

For details, please visit the dedicated webpage of the Lands Department (to commence operation tomorrow):https://www.landsd.gov.hk/.../land.../extension.html