A two storey retail unit with flats above was owned by our hairdresser client. During the conversion of the Victorian building to the rear into flats on error was made connecting the foul drainage. As a result, some 25 tonnes of raw sewage collected against the wall of our client’s building, all of our client’s staff fell ill and Environmental Health closed the building. Insurers offered to apply SIKA rendering to the wall to hold the sewage back but our diminution valuation showed that the correct solution was to prop the structure, remove part of the wall, hand dig out the sewage and remove from site and then reinstate the rear structural wall. The costs were high (£180,000) and the diminution exceeded the value of the premises. A deal was struck with the polluter who bought the property at full market value plus compensation.
High Street Shop Unit
Our Clients next-door neighbour constructed a swimming pool, which diverted a subterranean watercourse into my Client’s garden causing flooding and the death of all of the trees and plants. The diminution valuation included a full “de-watering” system and pumping station, the cost of obtaining a disposal route for the water and complete re-stocking of the garden. This figure plus a loss of amenity figure was paid by the neighbour.
Our Client bought a house subject to a survey that proved to be negligent, the ground floor and the entire roof structure required reconstruction. The diminution valuation showed that the purchase price should have been reduced by £60,000 and a settlement was achieved close to this figure.
We acted for insurers of a firm of surveyors who were facing a claim for negligence in respect of the pre-sale survey. Our diminution valuation showed that the claim was over inflated and a settlement was achieved at a much lower figure.