Glossary

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There are currently 13 names in this directory beginning with the letter R.
Rack Rent
Rack Rent - The market rent for a property. Sometimes referred to as excessive or extortionate rent.

Ransom Strip
Ransom Strip - a small piece of land retained following sale of a larger plot. This is usually adjacent to a development site that is or may be an essential feature of a development. The owner may be able to demand a price for the land exceeding its intrinsic value by virtue of the developers need to use it.

Red Book Valuation
Red Book Valuation - A valuation report of a property that complies to the Royal Institution of Chartered Surveyor's (RICS) guidelines.

Reinstatement Cost
Reinstatement Cost - The estimated cost of rebuilding or restoring a building after destruction.

Rent Review
Rent Review - Pre-agreed period review of the rental payments due under a lease, through negotiation between the lessor and lessee, usually every 5 years.

Rental Incentives
Rental Incentives - Short term incentives offered to lessees to encourage them to take on a lease e.g rent free period.

Residual Debt
Residual Debt - Amount of debt remaining after repayments due under the bank loan have expired or the lease has expired.

Residual LTV
Residual LTV - The percentage of the amount of debt remaining after repayments due under the bank loan have expired or the lease has expired as compared to the original value of the property.

Residual Valuation
Residual Valuation - The Residual value for mortgage purposes calculates the value of the land. This is calculates using the expected sales value or gross development value minus development costs and developers profit.

Restrictive Covenant
Restrictive Covenant - A legally binding restriction on the use of property or land written in the deed of property.

Retentions
Retentions - The owner of the development may hold back some of the payment due to the contractor/developer as security, to cover any structural problems caused by the under-performance by the contractor/developer. The retention is usually 3-5% until practical completion. Further amounts can be held during the defects liability period following practical completion.

Reverse Premium
Reverse Premium - a payment by a landlord to a tenant as an incentive to take a lease wither because of market conditions or to assist with fitting out costs (or both). Generally, the payments to the tenant is taxable.

Reversionary Rental
Reversionary Rental - The difference between the current passing rent under the lease and the current estimated rental value.