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Instructions were received to negotiate a Dilapidations claim for a former Tenant where the Landlord had served a Schedule 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 £81,000.

The Schedule required various works including removal of Tenant alterations and full internal decoration.

In response, our Building Surveyor reached a total sum of £44,000.

It was clear from a reletting perspective that certain works that were agreed between Building Surveyors would not be required.  This included removal of tenant installed kitchens which would be retained and reused by a new occupier.

Further, the decorative condition of the ancillary areas would be more than acceptable to a new occupier as vacated.

Utilising this, we concluded a reduction (also known as diminution) of £34,000 and then ultimately settled the Claim at £38,000.

Clearly, this illustrates that even where there is a valid claim for certain works (reinstatement of tenant alterations for example), it does not then necessarily result in the same impact on value.

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