Landholders have been given the authority to extend the lease duration for non-residential land plots.
The regulations previously dictated that landholders seek permission from the Ministry of National Planning, Housing, and Infrastructure before extending the lease duration. Landholders were also required to conduct an assessment after the leaseholder requests an extension before the expiry of the lease agreement. After which, the ministry will extend the duration by no more than 50% of the current lease period.
The revised regulations now grant landholders the authority to extend the lease duration after conducting an assessment, with the requirement to specify the benefits received by residents of the island or city from the investments made on the land plot. The assessment should also specify the works to be conducted on the land plot which would contribute to the government’s development plan during the extended lease period. It should also specify how the land plot has been used.
Additionally, the new regulations have nullified the rule allowing the leaseholder to receive only one extension. The landholder will now be required to specify the maximum number of extensions it will provide to the leaseholder in the bid announcement. The ministry will also have the authority to adjust the lease rate in the extension agreement, based on the current market.