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”
CIArb exists for the global promotion, facilitation and development of all forms of private dispute resolution around the world to maximise the contribution that dispute resolution practitioners make
Paul J Raeburn
BSc (Hons) MRICS DipArb FCIArb
RICS Accredited Mediator
Neil Burridge
BSc (Hons) MRICS ACIArb
RICS Registered Valuer
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