This is the formula used by the billing authority where an assessment has been reduced (N) after the compiled list date (J), and where a property is affected by transitional relief. It is critical that ratepayers in these circumstances get the date of decrease right or matters could prove costly.

The equivalent rent that would be payable after all incentives (for example capital contributions and rent-free periods) are taken into consideration. This calculation is used by the VOA to determine the actual Rateable Value. It is also used in lease negotiations to identify the appropriate level of rent.

The net income from a property investment after deducting ground rent and non-recoverable expenditure.

The net initial yield is the initial net income at the date of purchase, expressed as a percentage of the gross purchase price including the costs of purchase.

The 'useable' measured internal floor area of a building, which is measured to the internal face of external walls, by excluding 'non-useable' but ancillary/essential areas such as stairwells, WCs and permanent essential access routes. Most commonly used in the office and retail sectors.

The sum of the discounted cashflow of a project, with all tranches of net income discounted to a present value at a rate derived from the investor's target rate of return or the cost of capital.

Net yield takes the assumed or actual costs associated with purchasing the property into account, providing a more accurate position in respect of the relationship between the rental income and the total capital investment.

Shorthand term referring to the outcome of an 'upward-only' rent review, where the current open market rental value is at or below the level of the passing rent, and the review is documented at the same (nil increase) level.