Radius Consulting - Retail High Street


86 EAST STREET, BEDMINSTER


  • Section 18 for Tenant
  • Landlord’s Claim – £286,716.79
  • Tenant’s Building Surveyor’s Assessment - £118,800.21
  • Section 18 valuation - £90,000/£95,000
  • Result - £100,000
  • Large premises with upper parts that were outmoded.
  • Large number of retail premises vacant and ‘To Let’ nearby
  • Law of Diminishing Returns – spending anywhere near Landlord’s Claim would not result in any increase in rent/return

“Section 18 gave us another angle to dispute the Landlord’s Claim, especially with regards to the upper floors”


81 BROADMEAD, BRISTOL


  • Landlord’s Claim - £115,000
  • Tenant’s Building Surveyor’s opinion on costs - £60,000+
  • Section 18 valuation on behalf of tenant - £40,000
  • Settlement - £40,000
  • Large amount of voids on Broadmead. Zone A values fallen significantly
  • Many temporary lettings have been agreed, including on the subject
  • Much of the internal fit out (changing rooms, fixtures and fittings) reused by temporary trader
  • THEREFORE, if works had been undertaken to comply with the Schedule of Dilapidations, such temporary agreement would not have taken place
  • Therefore their very existence has had a positive impact upon value

82 HIGH STREET, BANBURY


  • Section 18 for Tenant
  • Landlord’s Claim £112,383. Landlord’s S.18 £63,750
  • Tenant’s costs c£70,000. Tenant’s S.18 £36,750
  • Large amount of Claim related to internal decorations, especially to dilapidated second and third floors
  • Although in a state of disrepair, the second and third floors have no market in the modern context, considering modern EPOS systems and availability of sufficient ancillary space on the ground and first floors
  • Settlement - £41,500

25 HIGH ROAD, BEESTON


  • Section 18 for Tenant
  • Landlord spent £50,000 and relet to new tenant
  • Also granted tenant 9 months rent free, and Landlord claimed this was to reflect additional ‘repairs’
  • Landlord claiming cost of works and rent free incentive as their loss
  • On behalf of Tenant S.18 accepted works were necessary to achieve a letting
  • However, rent free incentive was ‘norm’ in Beeston
  • Devaluing incentive resulted in a net rent in excess of Zone A tone
  • Therefore Landlord’s loss was cost of works only
  • Landlord accepted Tenant’s Part 36 offer at £50,000



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