ST KITTS & NEVIS Law and Practice Contributed by: Dahlia Joseph Rowe and Daisy Joseph Andall, Joseph Rowe, Attorneys-at-Law
Federation provided temporary moratoriums in 2020/2021 waiving and/or deferring fees and payments to homeowners who were adversely affected by the pandemic. Similarly, the Nevis Housing and Land Devel - opment Corporation (NHLDC) had a mortgage relief fund to benefit persons who have received financing from the NHLDC to purchase their homes. Further, public auctioning of houses for default in loan payments was temporarily ceased. 6.4 Typical Terms of a Lease Although the statute does not prescribe the terms to be used in a lease, there are some terms that can usually be found in a commercial lease. Typically, the length of a lease of business prem - ises is for a fixed term of years with an option to renew. Rent at a fixed sum is usually payable monthly and default of payment can result in the termination of the tenancy. Ordinarily, the lessor is responsible for the struc - tural maintenance, insurance and property taxes relating to a commercial lease, and the tenant is responsible for any minor wear and tear that arises during their tenancy. Unless otherwise outlined in the lease, the tenant would also be responsible for paying for the utilities during the tenancy. It is common for a lease to include provisions concerning whether a tenant can assign the lease or sublet the property and outlining the types of permitted alterations or improvements (if any) and whether or not permission from the landlord is required to do so. In light of the coronavirus pandemic, the inclu - sion of force majeure, rent abatement and other
similar clauses in leases has become more com - monplace. 6.5 Rent Variation The level of rent is determined by agreement between the parties. Express provision may be made in the lease for a predetermined increase in the rent after a stipulated period during the term of the lease. 6.6 Determination of New Rent See the description in 6.3 Regulation of Rents or Lease Terms . 6.7 Payment of VAT The payment of value added tax (VAT) is pre - scribed by the Value Added Tax Act, which does not prescribe that VAT is payable on rent per se. However, if the income of the landlord from its rental business is more than the threshold of XCD100,000 per year, which is usually the case with leases of commercial properties, and the landlord is registered to collect VAT, the tenant would be required to pay VAT on the rent. If the tenant is registered to collect VAT, the tenant would be entitled to request a refund of the VAT paid on the rent. 6.8 Costs Payable by a Tenant at the Start of a Lease At the start of a lease, the tenant is not usu- ally required to pay any amount other than rent. However, some leases may require that a ten - ant pay the first and last month’s rent and/or a refundable deposit to be applied to any dam - age to the property and/or sums outstanding on service accounts and utilities at the end of the tenancy. 6.9 Payment of Maintenance and Repair When a person is renting a commercial build - ing with a shared rental space – for example, a
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