CASE STUDY: CLIENT OWNED PUB

Introduction and Client Background
A family client owned a pub and hotel in the south west of England, but for the last 20 years they had leased the property to a brewery chain. The family wished to take back operations on expiry of the Lease due to their perceived decline of the asset (in part due to the pandemic) and manage the business. The pub was listed and repairs had been undertaken that were not sympathetic with the listing. INform were appointed to prepare a Terminal Schedule of Dilapidations and serve it ahead of Lease expiry with a view to having some significant works repaired ahead of Lease expiry.

Objectives of the Dilapidations Assessment

The object of the schedule was to enforce ‘specific performance’ of the lease covenants, to ensure high valued works were undertaken ahead of lease expiry by the Tenant.  This ensured any cost settlement post expiry was kept to a reasonable amount as no further capital funds were available from the Landlord to facilitate the works needed.  A potential valuation defence was possible, and as such expert navigation was required to deliver up the building in good repair, and quickly in order to minimise the pub and hotel being closed whilst works were undertaken.  

Survey Methodology

Before our surveyors attended site, the instruction began in the office, analysing the Lease information and developing a strategy with the Landlord and their legal advisors.  Due to the size of the property, a team of surveyors attended site to minimise the Tenants disruption, ensure a comprehensive inspection and ensure all breaches were captured within an initial single visit.  Drone technology was used to assess the inaccessible parts of the roof.  Detailed measures were taken to assist with costing the breaches. 

Findings and Solutions

Significant disrepair was observed from a previous car accident that had crashed into the property.  The poor repair undertaken had affected the timber frame and caused the floors to sag to the living quarters above the premises.  Further structural repairs were needed to the timber frame of the pub and also the hotel, both were suffering rot and timber infestation.  The roof was also in poor condition, all of which had an impact on costs due to the listed nature of the building.  

Outcome and Client Feedback

The dilapidations was settled at the cost of the works with money being received ahead of works commencing.  This provided surety to the Landlord that they could proceed with full extent of the works.  However by agreeing the settlement ahead of works commencing, meant that any issues that arose during the contract would be at the Landlords risk.  Inform were appointed to Contract Administrate the works, so we were able to advise on works and help keep the costs down by closely monitoring the works as they progressed and ensuring quality was controlled.

Conclusion

At INform Surveying, we provide expert dilapidations assessments designed to protect your financial interests and ensure a smooth end-of-lease process. With our focus on accuracy, transparency, and timely resolution, we help both landlords and tenants navigate the complexities of dilapidations with confidence.

Need help managing dilapidations on your commercial property? Contact Inform Surveying today to schedule an assessment and ensure your property interests are safeguarded with precision and foresight.