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Case Studies
Dilapidations Assessments
20 Industrial Units throughout UK
Negotiation of Dilapidations Claim
Landlords Claim - £4,500,000
Settlement Achieved - £950,000
Saving - £3,550,000
Managed and undertook dilapidations assessments during the term for an industrial occupier with a portfolio of 20 properties as part of a strategic review of current lease liabilities.
Reports provided to the client providing essential cost information for budgeting purposes and strategic lease exit advice
The premises comprised 150,000 sq.ft of Grade A office space in London. I advised we approached the landlord early to negotiate a financial settlement. The landlord served a claim equating to £4,500,000 including 'Loss of Rent'. Following extensive negotiations with the landlord and successful implementation of supersession arguments the claim was reduced to £950k. A saving of over £3.5m to the client.
Vacant Possession break clause implementation
Dilapidations Works Implementation
Landlord Claim - £175,000
Value of Works - £68,000
Saving Achieved - £107,000
We advised the client which works they were required to undertake for vacant possession compliance which had to ensure that all chattels & tenants fixtures were removed (due to tenants fixtures not being demised). What is defined as a chattel is down to legal interpretation so careful consideration was required.
Had the break clause failed, the clients lease would have continued for another 5 years at a potential cost of £7.5m.
We advised the client during the term that certain works should be undertaken to the premises prior to handing back the premises to the landlord at lease expiry.
This included works to the asphalt roof covering, external decoration and strip out of tenants alterations. The landlord had requested the whole roof covering be replaced, however, we advised that repairs and a liquid roof coating would comply with the repair covenant. Following the works being completed the landlord served a residual claim of £90,000 which we were able to reduce to zero.