DILAPIDATIONS NEGOTIONS LEAD TO A SAVING OF £150,000 FOR OUR RETAIL CLIENT
Recently, RB Surveyor Services were approached and instructed by a tenant to negotiate a terminal dilapidations claim. Following lease expiry on this 9,500 sq ft retail unit, the landlord had served a terminal schedule of dilapidations which amounted to £215,000.00.
We reviewed the occupational lease, attended site to undertake our own assessment of our client’s dilapidations liabilities and compared this against the landlords claim. Using our knowledge and expertise, we considered a number of factors that would impact on the claim, such as;
- Relevant case law;
- Whether it was necessary to replace certain items when repairs would suffice;
- Potential supersession and diminution defence.
We also considered what the necessary condition was taking into account the age, character and locality of the premises and what would make it reasonably fit for the occupation of a reasonably minded tenant of the class likely to take it.
This approach allowed us to prepare a robust defence in response to the landlord’s claim, which was followed by negotiations and a site meeting with the opposing surveyor.
Leave No Stone Unturned
Just as negotiations were reaching a more than satisfactory conclusion, we performed a final search and located a planning application, which outlined the landlords intentions for the property. Our due diligence investigations and procedures meant that further items could be struck out of the schedule as we identified several areas of supersession, which significantly affected the landlords claim.
The plans included proposals to sub-divide the unit and external alterations that would render valueless the repairs covered by the repairing covenant.
The supersession plans negated the claimed loss and allowed us to omit further sums from our settlement figure. Finally allowing us to negotiate a full and final settlement of £65,000.00, which represented a significant saving of circa 70% for our client.
Michael Brough, an Associate at RB Surveyors, had this to say about the success;
“RB Surveyor Services leave no stone unturned, as demonstrated in this recent case where a further significant saving was achieved as a result of our due diligence and expertise.
We are constantly striving to deliver the best service possible for our clients and successes such as these prove why clients should entrust their portfolio with us.”
This is an example of yet another successful instruction completed by RB Surveyor Services. It is part of our continued effort to deliver excellence across the board – giving our clients confidence and peace of mind.