Slough Forward Planning Saves Money – Dilapidations Case Study


Introduction

Farnham Road, Slough comprised a 28,000 sq ft, three-storey former furniture store situated in an established retail area close to the centre of Slough.

Client Background

Eyre & Elliston Ltd, a national electrical wholesaler with over 70 branches countrywide acquired the property as part of their take-over of EWS Ltd in 2006

Key Facts

NG prepared a comprehensive Schedule of Condition attached to the 2006 lease.

  • The Schedule comprised both photographs and text detailing the external and internal areas of the property, including the roof.
  • The Schedule recorded the poor state of repair in which the client inherited the building.
  • The Schedule comprehensively restricted the fully repairing nature of the lease to no better condition than evidenced by the Schedule at the start of the lease.

Lease Termination

In 2015 Eyre & Elliston relocated to more cost effective premises in a better trading position on the Slough Industrial Estate in closer proximity to both competitors and customers.

NG were instructed to negotiate the five figure dilapidations claim submitted by their landlord.

Key Facts

  • The landlord sought a substantial cash damages payment in lieu of dilapidations works.
  • NG reviewed the property relative to the lease terms, the Schedule of Condition set against the landlord’s claim.
  • NG’s investigations revealed the landlord’s true intention for the property, and negotiated residual claim items.
  • The Landlord’s expected a substantial five figure dilapidations settlement. With NG’s involvement our client’s exposure was limited to only £6,000 which was less than £0.22psf.

NG’s Recommendations

The size and cost of dilapidations claims often surprises and frightens tenants.  NG recommends prior to a tenant taking a lease they should commission a comprehensive Schedule of Condition recording the state of repair, and have this cross-referenced with the lease repairing clause giving them maximum protection.

If you are a tenant who has not made such provision or taken protective action, and are faced with a dilapidations claim we recommend you contact NG for advice.

Find Out More

Contact Richard Brown at NG on 0115-989-7095 or richardb@ng-cs.com for more information on our building surveying services, with particular reference to Schedules of Condition and Dilapidations or follow NG on Twitter @ngchartsurv

Richard Brown from NG Chartered Surveyors