Frequently Asked Questions

A3:    Special Purpose Leases (SPLs) are those granted for designated uses on specific policy considerations.  As SPLs are excluded from the application of the Ordinance, they are identified on the register in the Land Registry by an "SPL Identification Note" ^(Note 1).  The relevant lessees will also be notified individually.  Please refer to the relevant section of this website for the full list of SPLs.

(Note 1: For existing SPLs executed before the commencement of the Ordinance on 5 July 2024, the SPL identification note is made in two batches: (i) on 5 July 2024 (for SPLs expiring on or before 31 December 2030), and (ii) on 27 December 2024 (for SPLs expiring on or after 1 January 2031).  For SPLs executed on or after the commencement of the Ordinance on 5 July 2024, the SPL Identification Note is made on the date on which the lease is registered in the Land Registry.)

A4:    The Ordinance only streamlines the means of lease extension for general purpose leases.  It does not affect the Government's sole discretion to decide whether to extend a general purpose lease or not. 

A general purpose lease is for general commercial, residential and industrial use, and in general, the Government will extend such a lease unless there are public interest considerations against its extension (e.g. serious lease breaches remained unpurged despite repeated warnings).  For the avoidance of doubt, the situation that a piece of land will be required for a public purpose is not a ground for not extending the relevant lease. 

A5:    Extension Notices will be published in the Government Gazette normally 6 years before the lease expires. An Extension Notice will specify that all Applicable Leases expiring in the specified lease expiry period will be extended in accordance with the Ordinance, except leases which have been specified on the "Non-extension List" published on the same day.  The Extension Notices and Non-extension Lists are also uploaded on the relevant part of this website and published in one issue of Chinese newspaper and one issue of English newspaper.  

In general, Lands Department will publish a set of "Extension Notice" and "Non-extension List" annually in the Government Gazette near the end of a calendar year, as follows:

A6:    It can be ascertained that a lease has been extended by the Ordinance if: –

1. the "Extension Notice" covering the expiry date of the lease has been published, in general six years before expiry of the Applicable Lease (check the relevant part of this website);
2. the lease has no valid SPL identification note in its register in the Land Registry (meaning that the lease is an Applicable Lease under the Ordinance); and
3. the lease is not specified in the Non-extension List published on the same day (check the relevant part of this website).

For simplicity, Applicable Leases to be extended will not be individually listed on the "Extension Notice" and only those which are not extended will be listed individually on the "Non-extension List".

A7:    Under the Ordinance, Applicable Leases will be extended for a term of 50 years from the day following the expiry date of the lease, without payment of any additional premium, but an annual government rent equivalent to three per cent of the rateable value of the property as annually assessed will be charged upon extension.  The original lease conditions will remain unchanged, except for the inclusion of the following new standard clauses to strengthen control against unauthorized uses or developments:

1. the Government may enter and inspect the land under a lease for any non-compliance with lease conditions;
2. the Government may take enforcement action under lease for non-compliance with the Town Planning Ordinance (Cap. 131) and the Buildings Ordinance (Cap. 123); and
3. the Government may re-enter the land or part of the land (i.e. not necessarily the whole piece of the land) in cases of lease breaches.

A9:    If an Applicable Lease has been extended according to an Extension Notice, a lessee may opt out of the lease extension by delivering an opt-out memorandum to the Land Registry for registration within one year ^{(Note 2)} from the date of publication of the "Extension Notice".  Before doing so, the lessee is reminded to secure the agreement of all owners, holders in respect of the person’s interest under the applicable lease, and persons who have an interest in the land and observe the requirements in section 9 of the Ordinance and avoid prejudicing any contractual commitments they have entered into.

(Note 2: For leases expiring on or before 31 December 2030 (i.e. the relevant Extension Notice is published on 5 July 2024), a lessee intending to opt out of the extension is required to deliver the opt-out memorandum to the Land Registry on or before 31 December 2024.)

A12:  If you have been informed that your lease is an SPL, its extension will be considered by the Government on a case-by-case basis pursuant to an established mechanism, i.e. outside the Ordinance.  If the lessee does not agree to the identification of the lease as an SPL, he may apply to the Lands Department for a review within one year from the date of identification.  The Lands Department will endeavor to inform the lessee of the outcome of the review within six months (unless additional time is required for complicated cases).  For details, please refer to the guidelines for review on this website. 

In terms of processing the extension of SPLs, the Lands Department will first consult the relevant policy bureau (e.g. whether the original policy consideration of granting the SPL remains valid) before deciding on whether to extend the lease, and if so, the terms and conditions of extension.  If the Government intends to grant an extension, the Lands Department will negotiate and mutually agree with the lessee on the terms and conditions through contractual means.