Dilapidations Negotiations at Perrywood Business Park, Salfords, Redhill
Industrial & Logistics
Rapleys LLP was approached by a tenant at Perrywood Business Park towards the end of their lease term, following receipt of a schedule of dilapidations from their landlord.
Our client advised that the claim received far exceeded the provision which they had set aside at lease commencement and that they didn’t intend on undertaking any works themselves due to the limited time available prior to lease expiry.
Rapleys was then instructed to take forwards dilapidations negotiations with the landlord, with the aim of reaching a satisfactory financial settlement.
Following instruction, we reviewed the client’s lease documentation and identified an express loss of rent clause which the landlord appeared to have overlooked. This had the potential to result in an increased claim on the tenant should no works be undertaken prior to lease expiry to return the property to the landlord in the condition stipulated by the lease.
Due to the presence of the express loss of rent clause, and the client still being in occupation, Rapleys recommended that certain works be undertaken prior to lease expiry to mitigate the risks associated with this clause. This enabled a partial strip-out to be undertaken while the tenant still remained in occupation and their business activities continued.
As part of the role, we identified marketing material which demonstrated that certain elements were to be retained by the landlord, rather than stripped out as had been claimed within the schedule of dilapidations. This assisted with better understanding the works to be undertaken prior to lease expiry and improved the negotiation position.
Rapleys proceeded to negotiate the dilapidations claim with the landlord’s building surveyor and agreed a settlement at lease expiry with savings of 60% against the peak claim.
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