DILAPIDATIONS CASE  STUDIES


Uniquely minimising settlement of dilapidations claims for tenants of all commercial property types.
Did you know that the ‘statutory cap’ - section 18 (1) of the Landlord & Tenant Act 1927 (with similar in both Ireland and the Isle of Man) is the key piece of law in your favour.

Gracechurch  House,  Southampton

  • Section 18 for Tenant
  • Landlord’s Claim £262,000
  • Tenant’s B.S assessment - £125,000
  • Section 18 valuation - £nil
  • Settlement - £nil
  • Poor office market locally, especially for these outmoded (1980’s spec) offices
  • Property likely to be redeveloped for alternative use
  • In fact by checking the site, both by site visits and planning website 2 years after initial advice, property was redeveloped as a Travelodge
  • Therefore superseded the whole Claim 

Jasper House, 4-6 Copthall Ave, London

  • Section 18 for Tenant
  • Landlord’s Claim - £1.2 million
  • Tenant’s Building Surveyor’s Assessment - £450,000, plus fees and loss of rent of c.£400,000
  • Section 18 valuation - £250,000
  • Outcome (as a result of Mediation) - £380,000
  • Section 18 valuation assisted in reducing Claim, inparticular in relation to the loss of rent claim (large amount of secondary office space to let nearby)

Forest Hospital, Mansefield

  • Section 18 for Tenant
  • Landlord’s Claim - £192,000
  • Claim related to outmoded and dated office accommodation
  • Local office demand is for superior accommodation
  • Therefore Landlord would have to undertake significant upgrade/improvements to property to satisfy local demand
  • Section 18 valuation - £Nil
  • Result - £Nil – Landlord accepted argument and ultimately withdrew claim

Three Elms,  Hereford

  • Section 18 for Tenant
  • Landlord’s Claim £235,000
  • Property relet to The Range
  • Landlord’s claim included £168k to reflect rent free incentive given to new Tenant
  • Section 18 - £25,400
  • Local comparable transactions illustrated rent free incentive market led, rather than as a result of any items of disrepair
  • Settlement - £50,000

Commercial St,  Newport

  • Landlord’s Claim - £155,867.43
  • Landlord had undertaken the works and therefore seeking full recovery
  • Section 18 valuation on behalf of tenant - £41,275
  • Settlement - £41,275
  • Around 40% of units on Commercial Street were vacant
  • Much of the works undertaken by the Landlord not ‘value affective’, including redecoration of upper floors and basement, and removal of shopfitting and racking to ancillary areas
  • In such a depressed retail market, much of this is likely to be reused by a temporary tenant, thus enhancing the Landlord’s reversionary value (and removing empty rates liability).

45-47 Pembroke Road, Dublin

  • Diminution Valuation for Tenant pursuant to Section 65 of the Landlord and Tenant (Amendment) Act 1980
  • Building Surveyors agreed a common law claim of £515,000
  • Landlord’s Diminution Valuation £515,000
  • Claim relates to outmoded offices sold at lease expiry
  • Only market for offices is to significantly upgrade - supercession
  • Property sold at a price in excess of local freehold transactions
  • Diminution Valuation - £Nil
  • Difficult for LL to prove any loss
  • Settlement - £Nil

122 Broadway, Thorpe Bay, Southend

  • Section 18 for Tenant
  • Landlord’s Claim £262,000
  • Tenant’s B.S assessment - £125,000
  • Section 18 valuation - £nil
  • Settlement - £nil
  • Poor office market locally, especially for these outmoded (1980’s spec) offices
  • Property likely to be redeveloped for alternative use
  • In fact by checking the site, both by site visits and planning website 2 years after initial advice, property was redeveloped as a Travelodge
  • Therefore superseded the whole Claim 

Longmead Industrial Estate, Epsom

  • Section 18 for Tenant
  • Landlord’s Claim £500,000
  • Section 18 £310,000 - £320,000
  • Former Distribution Centre totalling 50,000 sq ft
  • Office accommodation outmoded – no air conditioning, poor specification, outmoded heating system
  • Local industrial market illustrated this needed to be improved
  • Therefore, supersession
  • Other works not ‘value affective’ including painting warehouse floor and blockwork walls
  • Settlement of £330,000 

Max Park, Corby

  • Section 18 for Tenant
  • Landlord’s Claim £1 Million
  • Section 18 £160,000
  • Former Distribution Centre totalling 500,000 sq ft
  • Various Reinstatement works would not be ‘value affective’ including removal of office partitions, high spec racking system and tenant installed toilet block
  • Local industrial market illustrated this
  • Section 18 assisted in settlement of £400,000

Nationwide Dilapidations Surveyors

Uniquely minimising settlement of dilapidations claims for tenants of all commercial property types by applying the seldom mentioned, but crucial, ‘statutory cap’.
(section 18 [1] of the Landlord & Tenant Act 1927)


Pre-Action Protocal for Claims for Damages

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