Deciphering a lease (shared ownership)

lynx1969

Hi everyone,
This isnt for me and more for someone who cannot do the internet
Id appreciate any help in deciphering rent increases calculation on this shared ownership lease, it mentions its linked to RPI and reviewed yearly
As a new user it wont let me upload pics
Basically it is writen as following:
GR + (GR(CL-PL)

---

(a straight line on lease itsself and divides the bracket writtings cl/pl stuff)
( PL. )
GR = rent now
CL = current index figure being the figure shown in the index published in the month of April last before the review
PL = previous index figure being the figure shown in the index published in the month of April in the year

I really would appreciate a basic analysis of what this calculation is and means and thank you for your help
Please note this is not for my property i am aiding a elderly couple who cannot do internet

Thank You in advanced

lynx1969

I am annoyed at how badly i have shown the calculation in post above and cannot edit. Please note the divide line is between the bracketed calculations not the GR +

GR + (GR(CL-PL)
___________
( PL )

da_rule

So we need to put some figures in the calculation, so lets assume the ground rent is £50, the current index rate is 3.3% and the previous index rate is 3.0% (all for arguments sake).

So the new ground rent would be:

£50 + (£50(3.3% - 3.0%)/50)
Leading to
£50 + ((£50*0.3%)/50)
Leading to
£50 + (£50.15/50)
Leading to
£50 + £1.003

Therefore the new ground rent would be £51 (maybe £51.01 depending on how the rounding clauses operate).

lynx1969

How did you get £50.15? For the third sum

da_rule

0.3% of £50 is £0.15.

15p added to £50 is £50.15.

lynx1969

Ok so is this 100% accurate way to dicipher the math? For example if something has gone up 3.87% in February 2018 using this sum using apparently December as a point, however November RPI 2017 was 3.9% and it went from £257.10 - £267.06 2018 Thank You

da_rule

What do you mean "if something has gone up"?

The only way to be sure of the interpretation is to ask the party who impose the service charge for some calculations, or, if the property is an old property, to look at the previous rent reviews.

lynx1969

Cant see any previous rent reviews only way calculated. Im sorry, just saying rent 2018 went from £257.10-£267.06 3.87% rpi november 2017 was 3.9% and rent was reviewed Feb 2018, not sure they have implied the math stated in lease or have they?

lynx1969

Applying math as above... What would it be for 3.9% now and 2.2% previously for £257.10 thank you so so much!

da_rule

You'd need the RPI figures for the April that the review took place and the April the year before. Although the review may take place in November/December it is done by reference to April RPI figures.

lynx1969

Ok just lease says in the month of December not April as stated above. Dont know why i said April above sorry .. however i feel atleast the current rpi would be done by november / current figure instead of December if i make sense as it seems December rpi isnt visable till a bit