DILAPIDATION CASE STUDIES
North West • 350 sq.m. 4 storey Grade II* period office building. |
• Legal Practice relocating to larger premises at lease expiry following long period of occupation. • Landlords costed claim served at expiry £68,000. • Instructed by tenant to mitigate claim and costs – claim finally agreed at £35,000, including costs and consequential losses, without tenant undertaking any works. • Tenants defence largely based on inflated landlords costings in schedule and diminution in value of landlords reversionary interest to determine ultimate loss |
WALES • 2,300 sq.m. single storey modern industrial building. |
• Japanese manufacturing company relocating at lease expiry. • Landlords costed claim served at expiry £200,000. Schedule served 12 months prior to expiry of 5 year FRI lease. • Instructed by tenant to mitigate claim and costs – claim satisfied by undertaking agreed programme of works supervised by DD and landlords surveyors. • Cost of works £25,000 plus £4,000 monetary payment for uncompleted work including fees but avoiding post termination consequential costs. |
SOUTH EAST • 450 sq.m. Bank/Retail 4 storey period building in Conservation Area. |
• Bank relocation at expiry of 25 year lease. • DD instructed by corporate landlords to sumbit claim 18 months prior to lease termination. • Schedule of Dilapidations served mainly relating to extensive alterations to internal layout, including installation of security vault. • Claim settled by Tenant undertaking extensive remedial works, including removal of security vault. Additional financial settlement in lieu of remaining works. • Further negotiation with sub-tenant and supervision of work undertaken by sub-lessee to agreed standard. • Hand over at termination date with payment of financial settlement enabling landlord to undertake external work programme and arrange early re-letting to new corporate lessee. |
