Radius Landlord Case Studies


VICARAGE LANE, BLACKPOOL


  • Section 18 for Landlord
  • Tenant’s offer at nil
  • Landlord’s original Claim - c £90,000
  • Section 18 valuation - £50,000
  • Result - £50,000

“When the former tenant is offering you zero, the fee for what we have seen to be a powerfully persuasive S.18 valuation is buttons relative to the reward”


SCIMITAR HOUSE, ROMFORD


  • Claim related to four storey office building
  • Section 18 for Landlord at £550,000
  • Tenant’s Section 18 valuation - £375,000
  • Settlement - £475,000
  • Tenant’s argument that offices were outmoded and in order to be relet, the hypothetical Landlord would have to undertake significant redevelopment - supercession
  • On behalf of the Landlord, this was disputed. Local evidence proved there was still a market and remedying the former tenant’s repairing liabilities would positively impact upon value

UNIT 5 WOODSIDE INDUSTRIAL ESTATE, DUNSTABLE


  • Section 18 for Landlord
  • Landlord’s Claim - £150,000
  • Tenant’s Offer prior to S.18 - £nil
  • Section 18 valuation - £80,000
  • Settlement - £52,000
  • Tenant’s argument based on planning application made by Landlord to redevelop site at lease expiry
  • However application was ‘speculative’ and a number of years away from being put into action
  • As per PGF II case, condition of premises as vacated by the tenant prevented even a short term letting from taking place
  • Case accepted by tenant in light of Valuation evidence

2 ROUNDHOUSE ROAD, PRIDE PARK, DERBY


  • Section 18 for Landlord - £216,000
  • Settlement - £165,000
  • Landlord relet property at lease expiry
  • New tenant granted rent free incentive due to former tenant’s failure to comply with their repairing obligations and had no liability to remove former tenant’s ‘unique’ curved partitioning
  • Although new tenant had a requirement for the partitioning, very few other tenants would
  • Therefore, as the new tenant had no liability to remove, the hypothetical Landlord would have to remove at lease expiry at their own cost
  • Matter of valuation - local market evidence proved that the rent free period was excessive and just under half was due to the condition of the property as vacated by the former tenant
  • Tenant accepted argument once proceedings were issued

3-6 THE RUSHES, LOUGHBOROUGH


  • Section 18 for Landlord
  • Former Tenant undertook various works prior to vacating.
  • Tenant concluded they had no further liability but offered £10k to settle.
  • Negotiations at a stalemate
  • Landlord’s Claim still amounted to c.£85,000
  • Section 18 produced at £70,000
  • Concluded that external elements inparticular would still impact on freehold value
  • Report assisted in obtaining a full and final settlement of £57,500

ROWLAND HILL HOUSE, CHESTERFIELD


  • Section 18 for Landlord
  • Landlord’s Claim £595,000
  • Tenant’s Building Surveyor Assessment - £432,817.48
  • Section 18 valuation for Landlord - concluded that there is no ‘cap’, ie all works are value affective
  • Settlement - £515,000
  • Tenant’s valuation - £60,000 based on the conclusion that there was likely to be significant supersession
  • Our report provided ammunition to illustrate there was still clearly an office market for the offices as demised and the former Tenant was in breach of all three heads of the claim



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