Double Discount - Case Study

Acting on behalf of specialist furniture retailer, Ocean Designs, Richard Brown of NG Chartered Surveyors has negotiated a dilapidations route for the company to vacate two commercial properties at lease end – the first at Ashville Close on Queens Drive in Nottingham.

However, Ocean Designs were also vacating a second property at Castle Boulevard, Nottingham within six months. As sub-tenant, they had negotiations to conclude with both their immediate landlord and the owner.

Early receipt of the landlord’s Schedule of Dilapidations claiming £50,000, gave Richard the opportunity to put in place planned reinstatement, repair and redecoration works for the property at Ashville Close, Queens Drive, Nottingham.

The property on Castle Boulevard, which was in an extremely poor state of repair when Ocean Designs took it, had the benefit of a Schedule of Condition, however the nature and logistics of the property meant they were still facing a potential dilapidations claim of in excess of £110,000.

The significant benefit of carrying out the works at Ashville Close meant not only a substantial saving of approximately £30,000 to the client on cost of works, but importantly on the landlord’s claim for additional fees and consequential losses on the claim, which effectively fell away.

The site owner at Castle Boulevard had previously indicated a possible desire to redevelop the property and so negate the landlord’s dilapidations claim. Detailed negotiations with both the owner and the landlord, gave NG the opportunity to substantially reduce the landlord’s claim to £10,000, a saving of over 90%.

Richard Brown of NG said:

“The timescale was extremely tight, but the benefits of a pro-active contractor, and the client rolling his own sleeves up to carry out decorations and cleaning, meant they handed back the property to the landlord with a day to spare.

“The extent of this claim on top of the recent settlement of the Ashville Close dilapidations, had placed substantial financial stress on the client, with potentially catastrophic consequences.  An alternative means of settlement was clearly needed.

The combination of knowing the property and its issues over many years, together with the willingness of the owner to agree a settlement without recourse to Court action, meant the client was able to survive the experience and move on.”

Nigel Hampson of Ocean Design said:

“Even though difficult circumstances, it has been a pleasure to work with NG and, more importantly, to get to know Richard. I thank him for his expert advice and assistance over the past year. Amazingly, it has been almost a year! I wouldn’t have been able to get through it all without Richard’s help.”

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