Ryan Davis, Senior Lease Expense Manager, shares a recent case where he was asked to review proposed major works on behalf of a warehouse client.  

The initial letter from the managing agent detailed the major works proposed which in part included significant sums to remedy roof leaks, amongst a number of other projects to “bring the estate up to standard” including drainage repairs, sprinkler tank works and fence replacement. The total cost of the project was £679,000 with our client’s apportioned share being £131,000.

Our bespoke management system Verivi immediately alerted us to the fact that our client’s roof was demised, with alarm bells ringing we set to work.  Reviewing the PPM, condition reports, specification of works etc. we confirmed that the overhaul of the roof formed part of our client’s demise and was not a service charge recoverable cost.  Upon confirmation from our client’s facilities manager, who reported no issues with water ingress at the property, we were satisfied that the works were not necessary and non-recoverable.

In terms of the other projects, we scrutinised the necessity of them to ensure that there were no enhancement or repairs (except where beyond economic repair) and satisfied the lease terms.  Following our discussions with the Landlord, they agreed with our position and removed £51,000 of non-recoverable costs.

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