Tenants of shops leased from the government in Valletta will have the opportunity to extend the lease to 45 years and convert it to an emphyteusis agreement, under a scheme unveiled this morning.

Parliamentary Secretary for Planning Michael Falzon said the scheme, which will open next Monday will offer the opportunity for tenants to use their shops as security when they seek finance.  

However, he warned that tenants abusing of the existing lease by splitting the properties  into smaller shops or renting them to third parties with exorbitant rates would have to regularise themselves as the government would be stepping up enforcement of these agreements.

Dr Falzon said the plan is to widen the scheme to the rest of the country and possibly to offices.

Under this agreement government-owned shops in Valletta will be grouped in four zones, ranging from €500 per square metre per year in the pedestrian areas of Republic and Merchants Street, €300 in secondary roads and €20 per metre in less popular areas of the capital. In each case, a lower rate will apply for basement level, and property from the first floor upwards.

Applications will be open on Monday and a €500 non-refundable administration will apply.