Index-Linked LO Value Guarantee Clause 

 

Description

Effect on adjustment run for the index-linked rent adjustment

Clause, index

Indicates that this is a genuine economic index (consumer price index)

None, for information only

Spread clause

Indicates that this is a technical index, i.e. details of a user-specific index

Typical example
Linking a commercial rent to the general development of commercial rents in the same locality. The general development of commercial rents is deduced from self-generated index series

None, for information only

Payment provisions

Indicates that a new rent is to be set when the index increases/decreases by a certain number of points - reference factor could be consumer costs. You must have Tenant approval

Adjustment run ensures that the rent changes in the same ratio as the reference factor - taking a pass-on percentage rate into account

You can process the rent calculated manually after an adjustment run; correspondence for tenant approve can be generated

Index clause

Indicates that a new rent is to be set when the index increases/decreases by a certain number of points - reference factor could be consumer costs. You must not have Tenant approval

Adjustment run ensures that the rent changes in the same ratio as the reference factor - taking a adjustments for increases and decreases into account

You cannot change the calculated rent manually