Dilapidations Advice for Hull City Council

Summary

The Eddisons Building & Project Consultancy team were appointed by NPS Humber on behalf of Hull City Council to defend terminal dilapidations claimed. The Council had been in occupation for 35 years from the original development of the site in 1975 on a full repairing and insuring basis. The Council occupied 2 floors of the 4 storey property but its liability extended to all external and common areas with cost recovered from other tenants via a service charge arrangement.

The claim tabled by the landlord was substantial (in excess of £850,000) involving a complete refurbishment of the 2 floors with extensive works to rain screen cladding, flat roof and common areas.

Our Findings

Our initial assessment of the works required was £250,000, and this was evidenced and supported by Section 18 (1) valuation. All information was shared on an open book basis with the landlord’s appointed advisors.

Due to wide variance, various meetings on and off site were held between respective teams. Formal litigation and Court proceedings were finally served by the landlord’s team, resulting in legal defence counsel being appointed, together with a full response and submission of documentation to the court.

Our Approach

We were appointed jointly with Shulmans Solicitors. A full review of the deeds packet was undertaken followed by a detailed response in RICS compliant Scott Schedule format fully in accordance with latest edition of the dilapidations protocol.

In addition our specialist valuers produced a Section 18 (1) valuation to evidence statutory cap under the Landlord and Tenant Act 1927.

Outcome

Our robust defence delivered the desired result with an out-of-court settlement in line with our initial assessment and Part 36 offer tabled (as such landlord’s costs did not form part of the claim.) The settlement achieved reduced claim and tenant’s liability by well in excess of £600,000.

Our robust defence, holistic approach delivered a substantial client saving.

Our position and defence did not falter or change with the team remaining firm throughout negotiations and proceedings.

The client, for whom we continue to act, was delighted with the outcome.

 

“Through technical excellence and a commercial mind-set, we deliver real value for our clients.”

Ian Harrington
Partner, Building Consultancy