UNIT 4 EDISON PLACE, DUNDEE
- Section 18 for Tenant
- Landlord’s Claim - £63,788.90
- Section 18 valuation - £10,000
- Settlement - £32,000
- Prudential Assurance - v - James Grant - found that it is not necessary for the Landlord to provide DV to substantiate their claim in Scotland
- However, Court may be persuaded by a Tenant’s DV that the Landlord’s loss can be ‘capped’ at a lower level than the ‘costs of works’
- Older industrial unit with limited marketability - therefore dealing with certain works (including ‘dirty’ rooflights, ‘soiled’ cladding) will have no positive impact on value
- Landlord accepted Diminution argument in agreeing a lower settlement than their Claim
MAX PARK, CORBY
- Section 18 for Tenant
- Landlord’s Claim £1 Million
- Section 18 £160,000
- Former Distribution Centre totalling 500,000 sq ft
- Various Reinstatement works would not be ‘value affective’ including removal of office partitions, high spec racking system and tenant installed toilet block
- Local industrial market illustrated this
- Section 18 assisted in settlement of £400,000
UNIT 10 HARTLEBURY INDUSTRIAL ESTATE
- Section 18 for Tenant
- Landlord’s Claim c£75,000.
- Tenant’s S.18 - £nil
- Tenant spent c£120,000 at lease expiry on various items of disrepair
- Landlord’s Claim referred to internal decorations to warehouse (repainting floor and steelwork), external decorations and full replacement of cracked (although accepted as still being wind and watertight) Georgian glazing
- Considering the size, use and market, none of these items were likely to have a positive impact upon value
- Settlement - £15,000
HARROWBROOK INDUSTRIAL ESTATE, HINCKLEY
- Section 18 for Tenant
- Landlord’s Claim - £161,000 plus costs
- Tenant’s B.S Response - £46,000 plus costs
- Section 18 valuation - £30,000 (plus contractually obligated costs)
- Result - £35,000 (inclusive of costs)
- Principal factors advanced for Tenant:
- Corrugated asbestos roof - Property therefore at or about the end of its useful economic life in any event
- Several voids on the Estate - supply exceeding demand
- Tenant advised on Valuation by Radius Consulting
BROADGATE, OLDHAM
- Section 18 for Tenant
- Landlord’s Claim £427,000 plus costs and loss of rent
- Claim of £427,000 agreed by Tenant’s Building Surveyor
- Landlord’s Section 18 - £620,000.
- Tenant’s S.18 £300,000
- Settlement at Mediation - £385,000 inclusive of costs
- Landlord spent £427,000 on putting the property back into ‘repair’
- However, Section 18 advice provided evidence to justify limited industrial demand for unit of this size in this location
- As a result not all of the works would be required in order to re-let
- S.18 advice helped to remove non value affective works and loss of rent from the Claim
FORGE LANE, DEWSBURY
- Diminution Valuation for former Tenant
- Landlord’s Common Law Claim by Building Surveyor: £253,000
- Tenant’s Common Law Response by Building Surveyor: £65,000
- Radius Diminution Valuation: £43,000
- Settlement: £53,000
- Notes:
- Without our Section 18/Diminution Valuation, the settlement would have course been negotiated (or mediated) to a figure between the poles of the opposing Building Surveyors
- However, enabled by our Diminution Valuation, the Tenant’s Building Surveyor successfully negotiated a settlement at about 20% less than his initial common law response figure
BLACKBIRD ROAD, LEICESTER
- Instructions were received to provide Diminution advice on behalf of Speedy Hire in respect of their former Depot at Leicester.
- The Landlord had served a Claim at £1 million.
- Considering the limited supply of trade counter/industrial units, we concluded that there was likely to be significant demand for the property.
- As such, many of the works sought by the Landlord would not be required as many related to works that would not impact value (decorating warehouse ceiling for example) or removing tenant alterations that would likely be retained (external wash bay for example)
- The Landlord was also claiming loss of rent totalling £108,000 which was unsupported.
- As a result we concluded a Diminution of £151,000
- Our report was used by the client to secure a full and final settlement of £255,000 – representing a significant saving from the original Claim.
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Paul J Raeburn
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RICS Accredited Mediator
Neil Burridge
BSc (Hons) MRICS ACIArb
RICS Registered Valuer
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