We are pleased to announce the completion of the sale of the long leasehold interest in the ground floor commercial units at Empress Heights, Southampton, on behalf of a private client. This milestone marks the end of a challenging chapter for our client and highlights the dedication and expertise of our team at Hellier Langston.

A challenging asset from the start
The journey with this asset has been far from smooth. Originally purchased with the promise of ten years of ‘secure’ income from a charity, the situation quickly deteriorated due to unforeseen circumstances. Government funding cuts led the tenant to file for voluntary liquidation, resulting in a vacancy and an unpaid dilapidations liability. This unfortunate turn of events coincided with the onset of the COVID-19 pandemic, a period during which office space demand plummeted to zero.

Complications with cladding
Further exacerbating the situation, the building was found to contain the same dangerous ‘Grenfell’ cladding, which carries significant fire risks. Although our client was able to avoid a significant contribution to the £10 million re-cladding cost, this issue rendered the property almost unlettable. The presence of hoarding boards and scaffolding around the building added to the difficulties in attracting tenants.

Overcoming obstacles
Despite these considerable challenges, our team at Hellier Langston managed to secure a tenant for one of the ground floor units while the scaffolding was still in place. We then proceeded to complete the sale of this part-let investment. This achievement is particularly noteworthy given that the EWS-1 certificate, which is necessary for mortgageability, had not yet been issued following the completion of the re-cladding works.

Proactive solutions
Throughout this arduous process, we also focused on mitigating our client’s financial burdens. We successfully helped reduce rates liability and have an ongoing appeal for the complete removal of the space from the Rating List during the re-cladding period.

Client gratitude
While the journey has been anything but easy for our client, they have expressed their gratitude for the proactive advice and unwavering support provided by Hellier Langston. Our team’s dedication has been instrumental in navigating through these challenges and bringing this difficult saga to a close.

Our team’s commitment and expertise have been pivotal in successfully completing the sale of the long leasehold interest in the ground floor commercial units on behalf of a private client.

This case underscores the importance of resilience and proactive management in real estate, particularly during unforeseen crises. Hellier Langston remains committed to guiding our clients through even the most challenging situations, ensuring they receive the best possible outcomes.