The government this morning announced a new scheme which will enable tenants to redeem temporary emphyteusis in residential properties administered by the Joint Office and the Lands Department.

Government properties minister Jason Azzopardi said this would benefit hundreds of households, who would finally be able to become owners of their homes.

He said the new scheme opens on February 20 and will run for six months. It will enable the tenants to redeem their groundrent at very favourable rates.

Those who currently pay less than €5 per year as groundrent will be able to redeem their groundrent for €1,000.

Those who pay between €5 and €10 per annum  will be able to redeem for €2,000 and those currently paying between €10 and €20 per year will redeem for €3,000.

Other rates apply for those paying more than €20 per year in groundrent.

There are two conditions. If a property is sold within five years from when the groundrent is redeemed, the governemnt will be entitled to 25% of the price of the property. Disabled people, separated couples and those over 65 years old are exempt from this condition.

If, within 20 years, such residences are demolished to be replaced by flats, the government would charge between 10 and 25% on the profit.

Dr Azzopardi said a similar scheme was launched in 2001 and 5,500 applications were made, of which 3,400 have now been processed.

See video comments by Dr Azzopardi.