0161 292 7085
A national company exercised the break clause to exit a property in South Manchester. Prior to the lease end Dabinett carried out a dilapidations assessment, then responded to the landlord’s dilapidations claim and settled with a significant saving.
The building was a large warehouse building, with metal roofs and walls. Internally the main warehouse was open plan and customer facing.
The lease had commenced in 2020, in less than five years a claim of six figures was presented at the lease end.
The tenant was exiting the building after less than 5 years. Dabinett reviewed the lease to determine the liabilities. A report was completed, providing a worst case scenario, which described the building condition and the requirements to comply with the lease. The assessment was in excess of £700,000.
The cost assessment was taken from tendered costs, primarily focussing on highest tenders recieved and allowing for more expensive options for repairs to be considered.
A significant concern was the condition of the roof, which was suffering from cut edge corrosion and general deterioration of the surface.
Unfortunately no schedule of condition was in place to limit the liabilites (something now in place a the client’s new site).
A Terminal Schedule of Dilapidtions was received, the claim was for approximately £430,000.
The immediate exercise was to establish where there were possible savings and risks.
The claim came in below the worst case, however on review there were problems found with the sums being claimed. The roof works were well below the lowest tendered sums Dabinett had recieved and some elements of disrepair had been missed.
Negotiatons went quiet, only for a renewed claim, this time with a 50% increase on the roof works, having been tendered by the Landlord.
Robust negotations were had and a settlement reached. The final settlement was £200,000, a significant saving over the original dilapidations claim.
Dabinett have vast experience in dilapidations and can assist with all types of building, utilising knowledge to help landlords and tenants.
For help with an dilapidations matters or further information follow this link.
