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Instructions were received from a former warehouse occupier to negotiate a dilapidations claim on one of their former depots.

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 £20,000.

Our Building Surveyor’s assessment agreed with the majority of the Claim and concluded a sum of £15,000.

Through our investigations, it became clear that the Landlord relet the property immediately at lease expiry to a similar operator.

From analysing the deal, we found this was on ‘market terms’. Further, no works were undertaken by the Landlord prior to completion of the new lease. 

Therefore, we determined there had been no impact on the Landlord’s freehold reversionary value and the Diminution was nil.  We concluded the Claim on this basis.

This illustrates the fact that, in the ‘real world’ certain breaches of repair, redecoration and reinstatement do not in fact have any impact on the reletting of a particular property, especially in this case where there was strong demand with little supply.

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