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• 10 year FRI term referenced back to previous lease.
• Tenant vacated 2 years prior to expiry of lease.
• Commissioned to negotiate dilapidations liabilities and agree an early surrender to mitigate risks.

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• Site: 1,700 ft2
• Dilapidations liability: £39,000 (£23 psf)
• At risk: 4 years continuing rent @ £40,000 per annum (£160k)
• Effect of break obligation: The landlord agree to the break on acceptance of £22,500 (£13.23 psf)

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• Savills acted for the tenant, a solicitors practice, who occupied 4,240 sq ft on the second floor of a multi-let building. 
• The tenant had carried out considerable alterations to the demise
• The landlord served a Schedule of Dilapidations upon the tenant, seeking £132,290 (£31.50 per sq ft)
• Through negotiation Savills reduced the claim, agreeing financial settlement at £70,000 (£16.50 per sq ft)

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• Savills acted for the tenant, Tablogix, who occupied a 232,000 sq ft high bay distribution warehouse in Romford, Essex
• Our client's lease obligations were protected by a poorly drafted schedule of condition
• The landlord served a terminal dilapidations schedule valued at £1.7m (£7.33 sq ft)
• Savills held the line that the building was ripe for redevelopment. The landlord rejected this argument but refused to action any works on site
• After extended negotiations that centred on the extent of the tenant's demise, the effect of the schedule of condition and the landlord’s intentions, a settlement was agreed at £100,000 (£0.43 sq ft), a 95% reduction

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• Savills acted for the tenant, Deephaven Capital Management Limited, who occupied a 1,937 sq ft office suite on the first floor of a purpose built Edwardian office building close to the Bank of England
• The landlord served a terminal dilapidations schedule valued at £30,122 (£15.55 sq ft) and hinted that they thought it unlikely that our client would be able to operate their break
• Deephaven were operating a conditional break option that required them to hand the building back on the break date with ‘full vacant possession’ 
• At risk: If Deephaven missed the break their remaining 4 year rent liability totalled £369,360 plus service charge and rates 
• The landlord rejected our offer based on our own contractor’s quotation and we were forced to strip out the suite in order to achieve the break
• After extended negotiations that centred on the tenant’s break obligations the landlord accepted the break and a further payment to compensate for the remaining dilapidations works. Deephaven’s total costs came to £17,5454 (£9.00 sq ft)

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• Conditions: 6 months written notice.  Payment of £950,000 premium. Reinstate to open plan redecorated and re-carpeted with fluorescent tubes either replaced or washed clean
• At risk: Continuing rent and dilaps at end of term estimated to exceed £10m.
• Effect of break obligation: Set up contract but agreed settlement with landlord at £4.5M

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• Acting for the landlords, DPH Investments, Savills served and enforced a terminal dilapidations schedule against the tenant of this 7,780 sq ft office building formed from a converted Victorian warehouse
• The tenant’s lease had 8 years remaining to run and they were operating a conditional break option that required them to hand the building back on the break date with ‘full vacant possession’ 
• At risk: If the tenant missed the break their remaining 8 year rent liability totalled £1.6m plus rates   
• The tenant decided to reject Savills offer to settle and undertook the works valued at £200k. Unfortunately they decided to leave certain partitions and IT installations and Savills rejected their ability to break and advised the landlord to carry on demanding rent
• After extended negotiations that centred on the tenant’s break obligations the break was allowed on the payment of a £150,000 break release premium

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• Savills acted for a tenant vacating an office building let on full repairing and insuring terms and measuring circa 10,025 sq ft
• The landlord served a schedule ahead of the lease end date seeking £204,112 (£20.36 per sq ft)
• In conjunction with the tenant, Savills obtained costs for the works considered valid and a settlement was achieved at £125,000 (£12.47 per sq ft), amounting to a 39% reduction

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Acting for the tenant we negotiated activation of the break on payment of our dilapidation valuation

• Site: 9,000 ft2 offices
• Dilapidations liability: £122,000 (£13.55 psf)
• At risk: 10 years continuing rent @ £160,578 pa (£1.6m)
• Effect of break obligation: The landlord agree to the break on payment of Savills Dilapidations assessment £122,000 (£13.55 psf)

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Savills assessed Robert Bosch’s dilapidations liability and assisted in the lease renewal negotiations.

Robert Bosch were considering using their break option on this purpose built 270,000 sq ft industrial unit. Savills produced their assessment following a detailed survey and analysis of the lease documentation.

• Strategic dilapidations input into a re-leasing negotiation
• 270,000 sq ft industrial unit

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• 12 Months written notice
• payment of all costs up to break
• reinstatement where required by the landlord
• full repair and decoration.

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• Commissioned to advise upon potential dilapidations exposure when taking a 6 year sub-lease. 
• A Schedule of Condition was prepared and engrossed. 
• Commissioned again following service of an unconditional break and delivering vacant possession to defend a claim.

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• Savills acted for the tenant of a warehouse unit measuring 14,000 sq ft
• The tenant had occupied the property on a long-term basis and vacated in March 2008
• The landlord served a schedule seeking £78,627 (£5.62 per sq ft)
• Under Savills' direction a target schedule of works was carried out prior to lease end, amounting to £8,500 
• Following lease end, through negotiation, Savills achieved a financial settlement at £20,000 (£1.43 per sq ft)

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• 6 Months written notice, payment of all costs
• Reinstate, repair and decorate prior to service of notice.

   

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• 25 year FRI term to Chester Police.
• Chester police vacated the property three years early.
• Commissioned to represent the landlord, negotiate and agree dilapidations liabilities and an early surrender.
• Subsequently commissioned to refurbished the property to a modern standard including provision for comfort cooling.
  

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• Site: Converted mansion with ancillary office extension totalling some 40,000 sq ft
• Conditions: Material compliance on service of notice.  Payment of £900,000 premium. 
• At risk: Continuing rent and £1.5m dilaps at end of term.
• Effect of break obligation: Total confusion!

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• Acting for the landlords INVESCO Real Estate Ltd, Savills served and enforced a terminal dilapidations schedule on Renault UK who held two 15 year leases on 41,000 sq ft of purpose built FRI and Multi-let office space.  Renault were operating break options at the end of year 10 of their lease
• Renault’s lease had a schedule of condition that effectively capped their reinstatement and repair liabilities
• However, Renault were unfortunately in the process of operating a ‘conditional break’ option that required ‘substantial compliance of all lease terms up to the break date’ as well as to ‘reinstate the property to the same condition as they were before the execution of the lease’ before the lease could be ended
• At risk: If Renault missed the break their remaining 5 year rent liability ran into the £millions
• Savills served a £1.1m (£26.60 sq ft) claim on Renault and after extended negotiations that centred around Renaults break obligations Savills agreed a £1.03m (£24.88 sq ft) settlement just prior to the break date