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Budgens, Lyndhurst

Instructions were received to negotiate a significant claim for a Tenant who was due to retire.

The Landlord had served a Schedule of Dilapidations Claim (a report that provides a precise breakdown of repairs that must be scheduled to reinstate a property to its original condition as stated in the lease agreement) at £110,000.

The property was fitted out as a convenience store, and the Landlord’s claim required, amongst other things, a full strip out and internal redecoration.

Our Building Surveyor’s response was a total sum of £70,000.

Utilising this lower-cost assessment, we established a decrease (also known as diminution) of £40,000.

From our Agency experience, we concluded that considering the size of the property, continued use as a convenience store was the most likely occupier who would utilise the configuration and fit-out left by the former tenant.

Applying this enabled us to reach a settlement of £45,000 – a considerable saving from both common law positions.

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