The Brief
We were instructed by Volvo Car UK Limited to carry out a dilapidations assessment in order to facilitate negotiations with the landlord regarding lease renewal. At this time Volvo were undecided whether to contract their demise or relocate.
We undertook a two stage report:-
- Detailed dilapidations assessment in order to facilitate negotiations with the landlord if the property was to be vacated.
- Planned preventative maintenance report to assess the level of expenditure required to keep the property in repair in the case of a further lease renewal option.
Conclusion
Working closely with our agency team we negotiated directly with the landlord. Given the poor market conditions at the time, and the fact that the building was nearing the end of its life expectancy we were able to negotiate extremely favourable renewal terms:-
- No obligation to put or keep the premises in repair.
- Zero dilapidations at the end of the term.
- A cash draw down mechanism of £200k paid by the landlord to keep the mechanical and electrical equipment in repair during the term.
Keys to Success
Our commercial awareness and understanding of the market ensured we were able to present as many options as possible and advice on each to ensure an extremely satisfactory outcome for our client.
