Radius Office Case Studies


BLACKHORSE HOUSE, TUNBRIDGE WELLS


  • Section 18 for Tenant
  • Landlord’s Claim - £195,000
  • Tenant’s B.S Initial Appraisal - £150,000
  • Section 18 valuation - £110,000
  • Result - £120,000 (after acceptance of Tenant’s Part 36 offer)
  • Law of Diminishing Returns - LL spent in excess of £400,000 refurbishing premises
  • Landlord agreed letting on basis of new 10 year lease, tenant break at year 5, subject to 13 months rent free at £12.63 psf
  • Nearby evidence of lettings at £14 psf after basic works (redecoration/new carpets only)

“Landlord has spent the money - therefore surely it is the pima facie evidence of their loss”


QUEEN CHARLOTTE HOUSE
&
ROYAL SOVEREIGN HOUSE, CHATHAM


  • Claim related to two separate office buildings
  • Landlord’s original claim £1.71 million
  • Landlord’s section 18 valuation - £1.35 million
  • Agreement between building surveyors at £560,000 plus costs
  • Section 18 valuation on behalf of tenant - £420,000
  • Settlement - £510,000
  • Accepted that both properties were in a significant state of disrepair
  • However, supply outweighed demand locally - law of diminishing returns
  • Existence of some fixtures and fittings (required to be removed under the terms of the lease) - including kitchens and staff areas - will add to value

JASPER HOUSE
4-6 COPTHALL AVENUE, 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
  • 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)

113-115 DEANSGATE, BOLTON


  • Section 18 for Tenant
  • Landlord’s Original Claim - £384,991
  • Figure agreed between Building Surveyors - £263,000
  • Section 18 valuation - £220,000
  • Result - £248,000
  • Property in significant disrepair, inparticular the upper floor offices
  • Landlord secured change of use on ground floor (A3). Therefore able to successfully argue that majority of repairs on ground floor unnecessary

“Even after the Building Surveyors had reached a negotiated settlement, the Section 18 helped to reduce the Claim even further”




Paul J Raeburn BSc (Hons) MRICS DipArb FCIArb 
RICS Accredited Mediator
 
Neil Burridge BSc (Hons) MRICS ACIArb
RICS Registered Valuer

RICS Registered Valuer
Regulated by RICS
Chartered Institute of Arbitrators