Hi guys, was reading a valuation report for a property today and it says (under the part about leases) that the ratchet clause for one of the leases is 'soft'.
I'm not sure I remember this correctly. But is a 'soft' ratchet clause the case when the rent can't go down below what it was at the commencement of the lease term and a 'hard' ratchet clause is when the rent can't go down below the last reviewed rent amount (which may be in the middle of a term)?
Is that right?
I'm not sure I remember this correctly. But is a 'soft' ratchet clause the case when the rent can't go down below what it was at the commencement of the lease term and a 'hard' ratchet clause is when the rent can't go down below the last reviewed rent amount (which may be in the middle of a term)?
Is that right?
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