1.   The value of the principle repayment may be increased during the period of the loan, perhaps to coincide with rent reviews.

2.   In a falling market the tenant can thus engineer a downwards rent review.

3.   The drafting of a suitable formula is considered in more detail in the context of rent review.

4.   A major change in the composition of the index is one of the gambles inherent in this form of rent review.

5.   A third choice is to leave the new method of rent review open for agreement at the time indexation proves to be impossible.

6.   It will clearly be in the interest of the headtenant if the service charge is left out of account for the purposes of the rent review under the headlease.

7.   The effect on the final rent review would be even more drastic.

8.   If no particular difficulties arise at the time of the rent review the costs of the arbitration need not be great since evidence and submissions can be presented informally.