Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

# Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
• FIRST POST
• yChris
• By yChris 13th Jun 17, 8:36 AM
• 2Posts
• 0Thanks
yChris
Hello everyone.

My first post here.
We are reviewing our contract and the way it calculates ground rent confused me. Can someone give me a light?

The exact sentence is..
"The Indexed Rent for a Review Date shall be determined by multiplying the Initial Rent by the All Items index value of the RPI for the month two months before the month in which that Review Date falls, then dividing the product by the All items index value of the RPI for the Base RPI Month"

I am not quite sure what does it means by "month two months". Are they trying to double the ground rent every ten years (review every ten years).

Sorry, I am not a native speaker. Our conveyancer provide terrible service and it is near the exchange date now. I can't fire her.

Thanks a lot.
Cheers
Page 1
• SeagullFTB
• 13th Jun 17, 8:53 AM
• 43 Posts
• 19 Thanks
SeagullFTB
I'm not a mortgage advisor, but I interpreted as they would use the RPI from two months before the review date. So if the ground rent review was in June 2017, they'd use the RPI from April 2017.
• saajan_12
• 13th Jun 17, 9:04 AM
• 1,038 Posts
• 694 Thanks
saajan_12
The exact sentence is..
"The Indexed Rent for a Review Date shall be determined by multiplying the Initial Rent by the All Items index value of the RPI for the month that is two months before the month in which that Review Date falls, then dividing the product by the All items index value of the RPI for the Base RPI Month"
Originally posted by yChris
Adding a couple of words might make it clearer without changing the meaning. Basically on each Review date, the rent is

Initial Rent x RPI 2 months before review date / RPI in Base month

Where
- RPI means the 'All Items' index value of Retail Price Index
- Initial rent should be defined in the lease
- Base month should be defined in the lease
- Review date should be defined in the lease
• yChris
• By yChris 13th Jun 17, 10:58 AM
• 2 Posts
• 0 Thanks
yChris
Thanks both! We will talk to our solicitor shortly.
Sign up for MoneySaving Emails
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

391Posts Today

4,515Users online

Martin's Twitter
• RT @clq: @MartinSLewis You hit that one right out of the park. It might be the Tweet of the Century. I don't think anyone can do any Batter?

• You've run-out of puns. That's a bit of a googly, maybe I can help break your duck, though it is s sticky wicket, t? https://t.co/nJT51NpXfO

• RT @richlaing: @MartinSLewis Obviously spot poll but interested in the fact that 9% would opt out of donation. Interested to hear reasons w?

• Follow Martin