1) Apply for Premium Assessment
Premium of a flat is assessed with reference to the prevailing market value of the flat, the initial market value and purchase price of the flat as specified in the first assignment or (for resale flat) the last assignment between the HA and the purchaser and calculated by using the formula as stipulated in the Schedule to the Housing Ordinance. In other words, premium is calculated by converting the original discount into the current value.
If an HOS flat is owned by two persons, i.e. joint ownership, both owners have to sign the application form for premium assessment, with the same signatures as in the ASP; if a flat is owned by one person, then only one signature is needed. If an owner wants to authorize a friend or a relative to process the application, he / she must present a written authorization stating names and identity card numbers of the authorizer and authorizee, and address of the respective property. Flat owner must sign the authorization letter with the same signature as in the ASP.
2) Submit the Application Form
Applicants have to provide a daytime contact telephone number so that the concerned staff can make appointments to inspect the flat and conduct assessment.
Completed application form should be returned to the following offices together with a copy of the assignment and cheque / cashier order at $6,190 (subject to regular adjustments):
For payments by cheque, the payee should be "Hong Kong Housing Authority". The administration fee is not refundable, but it will be deducted from the premium provided that the premium is paid within the specific period.
Applicants should check that all necessary documents are submitted; otherwise the processing of premium application may be held up.
The assessed premium is valid for two months. Payment after the validity period will not be accepted. Should an applicant request for a fresh assessment, he / she must re-submit an application and pay the administration fee.
3) Procedure 3: Receive On-site Flat Inspection and the Notice of Assessment
The HD (or its appointed surveyor) will make appointment to inspect the flat, which the owner has applied for premium assessment, and conduct assessment.
Applicants will usually receive the Notice of Assessment issued by the HD (or its appointed surveyor) approximately one month after the HD received their applications and the requested information in full. Notification period may be longer for HOS courts that have just expired alienation restriction period, of which more applications are common.
4) Pay the Premium or Lodge an Objection / Appeal Pay the Premium
HOS flat owners must pay the premium within two months from the date of the Notice of Assessment. Otherwise they have to re-apply and pay administration fee at $6,190 .
Object / appeal against Premium Assessment
According to the Housing Ordinance, HOS flat owners who disagree with the prevailing market value assessed by the HD (or its appointed surveyor) have to lodge a formal appeal to the Lands Tribunal within 28 days from the date of the Notice of Assessment. Flat owners can also lodge on objection to the HD (or its appointed surveyor). Any late appeal / objection will not be accepted. The same procedures and appeal / objection period apply to both initial premium assessment and subsequent reviews.
If a flat owner has lodged an objection to the HD (or its appointed surveyor) or lodged an appeal to the Lands Tribunal, he / she may pay the premium within the time limit specified in the Notice of Assessment before he / she can sell, let, mortgage or assign the flat. The flat can only be sold, let or mortgaged after the flat owner has paid the premium.
If the flat owner has lodged an appeal to the Lands Tribunal but the case has not been heard, the HD (or its appointed surveyor) can revise the assessed premium before the Lands Tribunal has made a determination.
Before the Lands Tribunal has made a determination, HOS flat owners can sell, let or mortgage the flat after payment of the assessed premium within the time limit specified by the HD. Upon conclusion of the appeal, if the assessed premium is reduced, the reduced amount will be refunded to the owner. If the assessed premium is increased, the owner will be required to pay the increased amount to the HA.
5) Receive the Certificate for Removal of Alienation Restrictions
After the HOS flat owner has paid the premium (must be in the form of cashier order or a crossed cheque from a solicitor firm), the HD will issue the Certificate for Removal of Alienation Restrictions certifying that the premium has been paid in accordance with the Schedule of the Housing Ordinance, and alienation restrictions on the flat are removed. Flat owner should arrange with his / her solicitor to register the Certificate for Removal of Alienation Restrictions at the Lands Registry.