Dilapidations advice, Local Authority

Challenge

Vail Williams was appointed by a Local Authority owner of a retail premises in Cobham, Surrey, to provide dilapidations advice regarding an outgoing tenant.

We prepared a terminal schedule of dilapidation to be served on the outgoing tenant, negotiating the claim on the Authority’s behalf to compensate them for the tenant’s failure to comply with their obligations under the lease.

How we helped

• Reviewed the lease agreement to assess and understand the tenant’s liabilities at lease expiry.
• Produced a Terminal Schedule of Dilapidations detailing the reinstatement, repairs and decoration obligations required of the tenant as per the lease terms.
• The Schedule included budgeted costs against each item of work, calculated using the Building Service Information Service and recently acquired costs from ongoing projects.
• Engaged with the tenant’s surveyor, negotiating each element.

Result

• A settlement was agreed between both parties at a level proportionate to the works required.
• Both the landlord and tenant were able to reach agreement and sign the Form of Release, thus releasing the tenant from their obligations under the Lease.
• Securing a swift agreement enabled the Local Authority to procure the required works quickly.
• The client was able to refurbish the space for re-let, enabling them to get the asset back to market at the earliest opportunity.