Swedish Savings Success
5th September 2018
Following their recent relocation from City Gate East to The Ropewalk, Handelsbanken instructed NG Chartered Surveyors to advise on their potential dilapidations liability at City Gate.
Pre-judging the landlord’s expectations, NG were instructed to prepare a Schedule of Dilapidations, which was costed and a Summary Heads of Claim prepared to reflect the likely cost to the Bank of works, associated costs and fees.
The Bank took the decision, on NG’s recommendation, given the availability of time and the potential savings, to proceed the works and return the offices to the landlord repaired in accordance with the lease terms.
B & M Installations undertook a logistically complex strip out and refurbishment, the works were completed on time and the property returned to the landlord.
Richard Brown of NG, who advised the Bank, said: “The financial benefits to a tenant of undertaking reinstatement and repair works to return a vacated property back to the landlord in accordance with the lease can be significant, and in this case saved the Bank over £10,000.”
Richard added: “A dilapidations claim is not just the cost of work, but when making a cash settlement to the landlord includes a plethora of add-on costs and fees, which can add more than 25% to the basic cost of works for a tenant. We therefore strongly recommend that a tenant starts to consider the vacation process and the likely liabilities 6-12 months in advance of lease end, as the cost of a dilapidations claim can be frighteningly large, but the savings to be made by planning ahead can be equally substantial and more satisfying.”
Larick Walker of Handelsbanken said: “It was very reassuring to be able to effectively outsource the dilapidations negotiations to NG, who as a team acted extremely professionally in seeking to protect the Bank’s position and achieve the most cost-effective outcome for us. They kept us informed throughout the whole process as to progress being made and guided us on any issues on which a commercial view had to be taken. Having known Richard and the team at NG for many years, it was great to have a trusted partner to support us in this matter.”