Case Studies - Dilapidations
Willmott Dixon – Norwich
Route One provide general dilapidations advice to Willmott Dixon as tenants, generally at the expiry of long lese terms. This particular instruction was in respect of a series of ageing units on a site in Norwich.
During negotiations the landlord sought to defend the claim on the basis that the units were to be refurbished and re let. In our opinion the units were beyond their useful lifespan and it was simply not economically feasible that a landlord would repair as opposed to demolish and rebuild.
Following lengthy negotiations lasting over a year Route One were able to reach agreement with the landlord at a settlement figure representing 75% less than the initial claim.
Spudulike – Birmingham
Following a referral from another client Route One were instructed by Spudulike to act on their behalf in respect of a dilapidations matter in Birmingham
Route One challenged the landlord’s claim on the basis of the number of empty retail units within the vicinity and that, in our professional opinion, it was very unlikely the landlord would actually undertake the scope of work being claimed as part of the dilapidations. Spudulike had also made various improvements to the unit which would be of benefit to any incoming tenant.
Despite resistance from the landlord and having defended a diminution in value argument Route One were able to reach a dilapidations settlement representing a 70% reduction in the initial claim.
Cedar Communications (part of the Omnicom Group) – London W1
Route One were instructed on behalf of this tenant to negotiate a landlord’s dilapidations claim on approximately 10,000 sq ft of prime Mayfair offices.
Identifying and distinguishing between valid elements of repair and improvement items was the main challenge when presented with the landlord’s schedule of dilapidations.
Following lengthy discussions with the landlord’s representatives Route One were able to reach a negotiated settlement at a figure some 70% less than the initial claim.