The Crown Land Unit
RESIDENTIAL CPL OPTIONS
What is a registered conditional purchase lease?
A conditional purchase lease refers to a lease under which the person to whom it is granted (lessee) has the right to purchase the property provided he/she complies with the conditions of the lease. This lease must be still registered at the Land Registry and appear on the registers of title.
- Option 1: Conversion to Freehold Title
- Option 2: Purchase of freehold title by installment
- Option 3: Convert CPL to Long Lease
- Option4: Parcel Reconfiguration or Exchange
Option 1: Conversion to Freehold Title
The amnesty ordinance allows the owner of an expired Registered Conditional Purchase Lease to acquire the Freehold without the payment of rent arrears or mesne profit. An application to purchase the Freehold will require an inspection survey and will be subject to a current valuation of the land and rent level determined by the Government’s Valuation Office on the basis of an arms length sale between a willing seller and purchaser.
Option 2: Purchase of freehold title by installment
The amnesty ordinance allows the owner of an expired Registered Residential Conditional Purchase Lease to acquire the Freehold without the payment of rent arrears or mesne profit. Where the applicant is unable to obtain funds to buy the freehold and the purchase price is over $75,000, freehold title may be obtained by installments (subject to certain conditions). An Application to purchase the freehold under Option 2 will require an inspection survey and will be subject to a current valuationof the land and rent level determined by the Government’s Valuation Office on the basis of an arms length sale between a willing seller and purchaser.
Option 3: Convert CPL to Long Lease
Registered Residential CPL holders may be able to Convert to a long lease subject to certain requirements. A long lease provides the individual with the security to remain on the land for the duration of the lease and allow that person to continue enjoying the benefit of any house that they have built on the land. Ownership of the Freehold remains with the Crown. An application to request a Long Lease will require an inspection survey and will be subject to a current valuation of the land and rent level determined by the Government's Valuation Office on the basis of an arms length sale between a willing seller and purchaser.
Option4: Parcel Reconfiguration or Exchange
Registered Residential CPL holders may not be able to afford the cost of the entire parcel held under a CPL, but may be able to afford to acquire part of the parcel. This option allows for the reconfiguration of the parcel to either reduce the size (subject to Planning requirements) or in exceptional circumstances exchange the parcel. This would be agreed before exercising one of the 3 other Options available under the Crown Land Amnesty Ordinance
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Email: crownlandunit@gov.tc
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