Size: 880sqm (9,500sqft)
Sector: Commercial and Industrial
Value: 66% reduction from circa £75,000
Our client received dilapidations claim following the exercising of a break clause in their lease of an industrial building.
The objective was to seek to minimise the final settlement, by testing the landlord’s claim and negotiating with the landlord’s appointed surveyor. In addition, we were keen to ensure there were going to be no issues with respect to the successful operation of the break clause.
There was circa one month before the lease end to run and the schedule of dilapidations had been made available prior to the break date.
A review of the claim quickly highlighted items of work that could be easily carried out to reduce the claim. At the same time, best and worst-case scenarios were discussed with the client to explain where there were risks with the claim.
A priority was to also assess the break clause provision. It was crucial to ascertain what the requirements were to achieve the break. Fortunately, the clause was relatively simple and not contingent upon repair and decoration. Nevertheless, it was crucial to understand and confirm this.
Negotiations focussed on the costs being put forward being too high. Supported by Dabinett’s tendering experience and knowledge of case law, with examples of cases which contradicted the landlord’s claim being provided, the claim was reduced by over two thirds and a financial settlement achieved.