Slough Forward Planning Saves Money – Dilapidations Case Study
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.
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
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.
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.
- 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.
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 firstname.lastname@example.org for more information on our building surveying services, with particular reference to Schedules of Condition and Dilapidations or follow NG on Twitter @ngchartsurv