Redemption of ground rent

Reference is made to a letter entitled Ground Rent Redemption by Lawrence Mifsud (February 8). Mr Mifsud's letter regarding Joint Office ground rent redemptions contains only inaccuracies.

It is not true that temporary emphyteusis ground rents are redeemable at law, or in the private sector, by simply multiplying by 20. That applies to perpetual emphyteusis not temporary ones.

At law, a long-term emphyteusis may be converted to a perpetual one by multiplying by six, and then redeeming the ground rent by multiplying by 20; a global multiplication of 120. Thus in the case mentioned by the reader, the redemption cost at law stands at Lm15,240 (127 x 6 x 20). If the ground rent is revisable, the cost would be even higher.

Through the Joint Office Scheme, the government is offering to redeem the Lm124 ground rent now (instead of on date of expiry of emphyteusis) at the price of Lm6,310, a net subsidy of Lm8,930 - or 58 per cent!

So much for robbing Peter to pay Paul.