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Glossary - R
Rack Rented – A rack rent is a rent that represents the full open market annual value of a holding, sometimes known as the market rent.
Rateable Value – The amount equal to the rent at which the property might reasonably be expected to let from year to year if the tenant undertook to pay all the usual tenant rates and taxes and bear the cost of repairs and insurance and other expenses (if any) necessary to maintain the property in a state to command that rent.
Rates Exemptions – There are certain legal exemptions from rates.
Rating Liability – A charge depending on the occupation of commercial land and buildings, administered by the local authority.
Rating Multiplier – The national non-domestic (business) rating multiplier is the rate in the pound that is then multiplied by the rateable value of a property to produce the annual business rates bill. It is set each year by the Government and cannot rise by more than the increase in the retail prices index, except in a revaluation year.
Reinstatement – Refers to the tenant’s liability to remove all its alterations at lease expiry, ensuring that the premises is returned to its original condition for lease commencement.
Relief from Forfeiture – Tenants have a legal right of appeal to the court for relief from forfeiture and may be able to resume their occupation on payment of any rent and service charge arrears, remedy other breaches of covenant and pay locksmiths’ and baliffs’ charges.
Rent – A tenant’s regular payments to a landlord for the occupation of a property or land through a lease.
Rent Assessment Committee – The Rent Assessment Committee (RAC) is a part of the Residential Property Tribunal, an independent legal body that offers a way of settling rent disputes. Rent levels and increases relating to Assured Tenancies can be referred to the committee for review.
Rent Reviews – Rent reviews are a way of periodically adjusting rents to “Open Market Values”. The process follows the specific procedure agreed to by the parties and written in to the lease agreement, based on certain hypothetical assumptions and timing restrictions.
Repair Covenants – These are mandatory obligations in a lease which determine the landlord and tenant’s liabilities to repair a property.
Residential Property Tribunal – The First-tier tribunal – Property Chamber (Residential Property) has five regional offices which provide an independent service in England for settling disputes involving private rented and leasehold property. The tribunal has powers to settle certain types of dispute which would otherwise have to be dealt with by the courts. The tribunal aims to provide an easier and cheaper access to justice.
Restrictive Covenant – Any type of agreement which imposes a restriction on the use of the land to ensure the enjoyment of the land is preserved.
Retail Price Index (RPI) – The Retail Price Index (RPI) measures inflation in the UK. This official measure is calculated each month by taking a sample of goods and services, which the typical household might buy. Included are such items as food, heating, housing, household goods, bus fares and petrol. Unlike the CPI Index, the RPI includes mortgage payments.
Reverse Premium – The landlord(assignor) pays the replacement tenant (assignee) to take the lease on.
Reversion – Reversion in property law is a future interest (the reversionary interest) that is retained by the landlord after the lease expires. Once the tenants’ leasehold interest expires the interest in the land (property) automatically reverts (hence reversion) back to the landlord..
Reversionary Yield – is the anticipated yield, which the initial yield will rise to once the rent reaches an estimated rental value (ERV). It is calculated by dividing the ERV by the property valuation.