Central Head Office: Radius Consulting 1 New Park Place Pride Park Derby DE24 8DZ
Midlands & Scotland 0845 673 3009
0207 887 6425
Main Contacts: Paul Raeburn 07970 512313
Neil Burridge 07904 166545
Radius Consulting Strategy
Be it assisting building surveyors in providing our freehold property valuation advice in a subordinate role to theirs of assessing and managing the dilapidations process, or direct property valuation advice to landlords or tenants wishing to establish whether or not the statutory diminution cap might be less than the otherwise costed repairs figure agreed between
building surveyors, our concentrated experience in this specialism has afforded us the unique advantage of developing strategies designed to assist in the early and economic resolution of dilapidations claims.
This is largely a consequence of the generally substantial and quite savage decline in commercial property values in recent times. Our experience was echoed in the recent Estates Gazette article “Putting A Squeeze On Valuations”.
Yet we find that many of those who might benefit from employing the legislation are either unaware of it, or only give it lip service, with the consequence that:-
i. Many corporate multi-site occupiers still tend to settle dilapidations claims purely on the advice of their building surveyors, absent the “safety check” of a section 18 diminution valuation;
ii. Many other claims hang in the air, unresolved, long after lease expiry and vacation, creating both budgetary uncertainty and sterilised capital tied up in accruals.
Our DV assessments usually serve to provide the building surveyor with sufficient information to secure capping of dilapidations claims at a figure below the otherwise agreed and costed repairs figure.
In the event of outstanding claims which landlords have not progressed, hence creating budgetary uncertainty and accruals for former tenants, we find that the simple solution is often to utilise the “general arbitration” clause found in most relatively modern commercial leases.
For LANDLORDS, we find our assistance is required increasingly, commonly when the DV presented by their former tenant is unrealistically, or artificially, low.