CAYMAN ISLANDS Law and Practice Contributed by: Norman Klein and Adam Johnson, Appleby
Security deposits are freely negotiable but would likely include at least one rental payment. Secu - rity deposits are not regulated, so the terms of the lease would govern. 6.17 Right to Occupy After Termination or Expiry of a Lease Unless expressly provided for in the lease, ten - ants do not have security of occupation or a right to renew at the end of the term. However, a ten - ant that continues to occupy the premises with the consent of the landlord after the termination of the lease will be deemed to be a tenant hold- ing the premises on a periodic tenancy on the same conditions as those of the expired lease, insofar as those conditions are appropriate to a periodic tenancy. 6.18 Right to Assign a Leasehold Interest The Registered Land Act (2018 Revision) implies a covenant on the tenant preventing alienation without the landlord’s consent (which is not to be unreasonably withheld). A landlord would typi - cally impose a more stringent covenant in a well- drafted lease (for example, setting out specific circumstances in which it is prepared to permit assignment, subletting or sharing, and reserving to itself absolute discretion to refuse outside of those circumstances), and a tenant would typi - cally look for more flexibility. It is therefore a point that is often the subject of some negotiation, but a well-advised landlord would look for at least some assurances on the financial standing and commercial reputation of the incoming tenant in order to protect its inter -
the tenant (subject to any negotiated cure peri - ods) or an insolvency event of the tenant. Either the landlord or the tenant would ordinarily be given the right to terminate the lease if the leased premises are substantially destroyed or dam - aged and not repaired within a specified period. Tenant break options are generally uncommon, but could be negotiated. 6.20 Registration Requirements All leases attract stamp duty (see 6.7 Payment of VAT) but only leases exceeding a term of two years (whether as an initial term, through exten - sion or renewal options or where expressed to be for the life of one of the parties) require reg - istration (shorter leases are overriding interests). Registerable leases require a front sheet in pre - scribed form but otherwise the parties are free to negotiate the form and content of the bulk of the terms. Leases of part of a registered freehold It is common for a lease to contain forfeiture clauses that allow the landlord to evict the ten - ant. However, the tenant has a statutory right to apply to the court for relief against forfeiture, so the timeframe for the forfeiture process can vary. 6.22 Termination by a Third Party The Cayman Islands government can compulso - rily acquire any land. This is usually done for the purposes of establishing new public roads but can also be done in other circumstances. Compensation is payable, typically at the market value of the interest acquired. must be accompanied by a plan. Registration expenses are minimal. 6.21 Forced Eviction
est in the remainder of the estate. 6.19 Right to Terminate a Lease
Typically, a lease would provide for the landlord to terminate in the event of a material breach by
179 CHAMBERS.COM
Powered by FlippingBook