RENT REVIEW CLAUSE

A typical rent review clause is shown below:

5 RENT REVIEWS

5.1 The amount of the rent is to be reviewed effective from the Rent Review Dates

set out in Item 15.

If the term of this Lease is extended by legislation (or by the Tenant exercising a right given by legislation) the Rent Review dates include each anniversary of the latest rent review date stated in Item 15 (or if none is stated each anniversary of the Commencement Date) which falls during that extension.

5.2 If the current market rent from a Rent Review Date is not determined until after

that review date, the following provisions apply -

5.2.1 The Tenant must continue to pay the current instalments of rent due until the new rent is determined.

5.2.2 When the rent has been determined at a higher amount the Tenant must pay the additional amount due from the Rent Review Date to the date when the next monthly instalment of rent is payable on the first rent day after the date when the Tenant has been informed of the rent determination. Alternatively, when the rent has been determined at a lower amount, the Owner (subject to the Tenant not then being in arrears) must re-pay the amount over-paid by the Tenant on the first rent day after the date when the Tenant has been infonned of the rent determination.

5.2.3 In addition, the Tenant when paying the additional amount or the Owner when repaying an overpayment must pay interest calculated in accordance with Clause 4.6 at a daily rate from the rent Review Date to the actual date of payment.

5.2.4 There are 3 different methods described in the Appendix for fixing the new rent on any Rent Review Date. The method to be applied on each Rent Review Date is set out in Item 15.

5.3 If this Lease is surrendered during a rent review period for which a rent review

could have been or has been implemented without a rent determination having been made, when the rent is determined the former Tenant shall be liable to pay the Owner any additional rent or alternatively the Owner shall be liable to repay the former Tenant any overpayment each with interest from the Rent Review Date to the date of surrender, unless at the time of surrender the parties have agreed in writing to cancel that liability.

5.4 If a transfer of lease occurs during a rent review period for which a rent review

could have been or has been implemented without a determination having been made the following provisions apply -

5.4.1 the assignor and the assignee of the lease shall be jointly and severally liable to pay the Owner any additional rent payable from the Rent

Review Date to the date of transfer and additional interest in accordance with Clause 5.2.3 above,

5.4.2 the Owner shall be liable to re-pay the assignor any overpayment with like interest,

5.4.3 in respect of the rent review, the assignor's conduct before the date of the transfer of lease binds the assignee and

5.4.4 any sum to be paid or repaid under this clause shall be paid within 14 days after the determination of rent.

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