£3,000,000 Break Clause Saving for Blue-Chip Client

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Wainwright and Co were appointed by blue-chip client to manage the dilapidations break clause, which was required to be given with vacant possession. The tenanted property was a 20,000 sq.ft office on the outskirts of Greater London.

Wainwright and Co made a thorough plan of all works and prepared a dilapidations liability assessment; this was utilised by the client to evaluate costs. It was calculated that, over a period of 5 years, the client would save over £3,000,000; representing a 60% saving in their property costs when taking into account rent, service charge bills and dilapidations settlement costs.

Wainwright and Co commenced works to refurbish and fit out the new premises, allowing the client to move, and enabling dilapidations works to begin on the vacated site. Due to recent changes in dilapidations case law on the definition of chattels (Riverside Park Ltd v NHS Property Services Ltd [2016] EWHC 1313 [Ch]), Wainwright and Co were required to take a meticulous approach to ensure the new case law was observed and no chattels remained in the property at the break date.

A representative for the client said;

“Having found an ideal site to move to, we were keen to exit our existing lease, which had a break clause at 5 years. We have worked with Wainwright and Co. for several years and had every confidence in their ability to deliver on this complex and high stakes project. If the break had not been effective, we would have been held to the full terms of the lease and the financial implications of that were calculated to be more than £5,000,000”.

Gavin Wainwright, MD and Dilapidations Expert said,

“We relish projects like this at Wainwright and Co. as we know we have the expertise and the commitment which complex cases like this require. We take great satisfaction too in delivering such significant savings. The financial consequences were massive, and the terms of the break clause were extremely onerous. We pride ourselves on our thorough approach and worked closely with our legal partners as well as the client to manage the risk and ultimately deliver a saving of £3,000,000”.

Wainwright and Co are experts in representing both tenant and landlord. To talk about your relocation requirements, contact gavin@wainwrightandco.co.uk