Can someone with experience please advise whether these calculations are correct.
Lease began 1 March 2016
Rent review is 1 March 2018
Accordingly CPI for Dec 2015 quarter = -0.5
CPI for Dec 2017 quarter = 0.1
Adding the two together produces a negative result of -0.4. However the lease states (C+D) shall not be less than 1.
Therefore is my CPI multiplier simply 1% ?
FORMULA
A = B X (C + D)
A= the CPI reviewed rent from the relevant CPI rent review date
B = the annual rent payable immediately before the relevant CPI rent review date
C = CPI for the quarter year ending immediately before the relevant CPI rent review date
D = CPI for the quarter year ending immediately before the last rent review date or if there is no previous rent review date, the commencement date of the current term of the lease
where (C+D) shall not be less than 1
Lease began 1 March 2016
Rent review is 1 March 2018
Accordingly CPI for Dec 2015 quarter = -0.5
CPI for Dec 2017 quarter = 0.1
Adding the two together produces a negative result of -0.4. However the lease states (C+D) shall not be less than 1.
Therefore is my CPI multiplier simply 1% ?
FORMULA
A = B X (C + D)
A= the CPI reviewed rent from the relevant CPI rent review date
B = the annual rent payable immediately before the relevant CPI rent review date
C = CPI for the quarter year ending immediately before the relevant CPI rent review date
D = CPI for the quarter year ending immediately before the last rent review date or if there is no previous rent review date, the commencement date of the current term of the lease
where (C+D) shall not be less than 1
Comment