Q8. Since my flat is uninhabitable, am I still obligated to continue paying my mortgage, management fees, and rates and government rents?

Q8. Since my flat is uninhabitable, am I still obligated to continue paying my mortgage, management fees, and rates and government rents?

The above payment obligations each arise from different legal sources (e.g. the Deed of Mutual Covenant, mortgage documents, Rating Ordinance (Cap. 116), and the Government Lease. They are subject to the terms of the relevant documents or relevant special relief measures. Therefore, it is difficult to provide a definitive answer.

Having said that, in most cases, the answer is likely to be yes, as a starting point. The reason is that you usually remain the legal owner even if the flat has become uninhabitable. In other words, the amounts normally continue to be payable notwithstanding the damage caused by fire, unless the relevant agreement or document (e.g. mortgage, Deed of Mutual Covenant, an Owners’ Corporation resolution) says otherwise, or the obligations have been suspended, deferred or otherwise varied by the parties’ mutual agreement or under special relief measures.

(Information as of April 2026 and is subject to change) For instance, in respect of the mortgage obligation, there may be applicable relief measures that give you temporary breathing space. The Hong Kong Monetary Authority announced on 3 March 2026 that all 28 retail banks will extend the repayment grace period (including principal and interest) for existing mortgages, personal loans and credit card loans, etc. of the affected individuals by another six months to the end of November 2026, to alleviate their short-term financial pressure.   For further details, see: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2026/03/20260304-3/

In respect of the government rates, you may contact the Rating and Valuation Department promptly to ask whether the rateable value should be reviewed because of the fire damage, whether any amendment to the assessment is possible, and how rates and government rent will be handled if the building remains uninhabitable or closed for a long period. 

Practical steps:

1. You may contact the bank, ask to be placed formally within the Tai Po fire relief measures announced by HKMA and the banking industry, ask for written confirmation of the grace period (if any), interest treatment, repayment restart date; and check whether interest continues to accrue, whether the loan term is extended, and what happens after the grace period ends.
2. Write to the Owners’ Corporation or property manager asking whether ordinary management fees, emergency contributions or insurance-funded payments are expected. 
3. Contact the Rating and Valuation Department to ask for a review of rates and government rent treatment in light of the flat’s current condition. 

4. Keep every demand note, statement, receipt and notice, because later reimbursement or legal recovery may depend on proving what you actually paid.