Case Study:
End of Lease Schedule of Dilapidations Negotiation

Project Overview

At the end of a lease term a schedule of dilapidations was served on the tenant excess of £130,000.  The tenant contacted Dabinett to deal with the claim to reduce this and reach an equitable position.  Negotiations were protracted but eventually agreement was arrived at, reducing the original claim significantly.

Project Requirement

The tenant had been in occupation of two units since the early 2000s.  There had been a succession of leases and during the various terms there had been a variety of alterations.  The dilapidations claim required numerous items of repair, decoration and also a number of items of reinstatement of alterations.

A key issue was the removal of alterations and returning the property to the original form.  Dabinett successfully argued and made it clear that the original schedule of dilapidations asked for the reinstatement of alterations which were not valid under the most recent lease.

A defence to the claim was based on several points:

  • Case law – where claims made defied rulings;
  • Excessive costs – where were argued based upon Dabinett’s record of tender values;
  • Lease terms – some of the claim simply fell down by not being covered by the lease requirements.

Project Outcome

The claim was eventually settled for a little over one third of the original claim.  A cash settlement was agreed and matters were settled.

Without professional advice and Dabinett’s attention to detail then the matter of circa £40,000 of invalid reinstatement claims may have been missed and left the tenant with a much larger bill.

Take a look at our dilapidations page for more information.

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