Case Study: Magnet consolidate assets following a small downturn in trade

Published on: 17th August 2016

Magnet is the UK’s leading kitchen experts with a number of branches and showrooms throughout England, Scotland and Wales.

Following the recession, Magnet made the decision to restructure and consolidate their business, which involved either relocating or closure of 10 of their stores in the Scotland and Northern England region.

Magnet appointed us to conduct dilapidations assessments on those leasehold properties and thereafter provide on strategy for dealing with the dilapidations matters with the landlord in order to permit the lease to determine or for break clauses to be validly executed.

Once the overall strategy had been agreed with Magnet, they provided a supplemental appointment to SW to design, commission and execute the repair works prior to the lease determination date concerning 5 of those properties. During the works we successfully negotiated the landlord agreement that all works had been satisfactorily carried out, therefore extinguishing the client’s obligations.

We negotiated financial settlements with the landlord’s agents in regards to the remaining 5 properties to a satisfactory conclusion. For example, we secured Magnet a £0 settlement in regard their property in Dumfries, releasing Magnet from their lease at no extra cost for dilapidations. At the Magnet properties in Elgin and Dunfermline, we were also able to achieve lower exit costs than it would have cost Magnet to undertake the dilapidations works.

This instruction proved our team’s expertise in dilapidations both in England and Scotland (the law of which is different in both regions), but thanks to our previous experience of working in both nations, we were able to navigate the laws to reach the best outcomes possible for Magnet.

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Dilapidations

Dilapidations relate to both tenant’s and landlord’s obligations to repair, decorate, reinstate a property or perform legal and regulatory works during, or at the end of a lease. We develop dilapidations strategies for both landlords and tenants using our knowledge of dilapidations law and current case law. By using an expert to handle effective negotiations, you can ensure your settlement is achieved quickly and efficiently. Tenants We’ll minimise the settlement to ensure you’ve got funds for your move to a new premises, or to boost your cash flow. We also offer dilapidations advice for tenants taking a new lease, which will minimise the liability when you leave the property by providing expert knowledge applied to the building’s current condition and review with your solicitor. If needed we may also prepare a schedule of condition to attach to your lease, which will also limit your repairing obligations. Our dilapidations assessment service also provides you with a clear indication of your liability during your lease term and a clear strategy as to how to extinguish those obligations to minimise your financial outlay, during and at the end of your lease.   Landlords We’ll maximise your settlement to ensure you’ve got funds to repair, redecorate and reinstate your property and increase its capital value and desirability to new tenants. Dilapidations is an extensive field or law and is differently applied to each property, but our experts are on hand to guide you through the process, whatever the situation.   Contact Us

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