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Some GP Practices rent their space from a landlord and will have a Lease for their occupation or at least they should! Surgeries that are Leased receive reimbursement from the NHS that should cover the cost of their rent but be no higher than the actual lease rent paid except if they qualify for a retention of rent which is explained below.
Any surgery lease should clearly set out the areas that are permitted to be occupied and explain the obligations of the Practice as ‘Tenant’ in terms of repairing, maintaining etc.
The two main types of leases are:
If a practice has an FRI lease, we can of course check the type of lease for you for free, then they should be able to retain a % of the rent they pay the landlord to cover the costs of any maintenance required. Standard is 5% for a purpose built and 7.5% for a converted surgery. This means the Actual rent paid by the Tenant under an FRI Lease should be 5/7.5% lower than the reimbursement they receive from the NHS.
Surgery leases usually contain rent review clauses which set out the basis/mechanism of the review, i.e. market rent reviews or RPI. As we said above, we can always check a surgery lease free of charge to advise on this. See below a guide for the general rent review process for a standard market rent review:
We can act for either the tenant or the landlord during any of these processes.
Please note, the rent review notice from the landlord may include a clause to advise that the rent will not be higher than the DV’s opinion. In which case the landlord’s agent can assist the tenant through the above process. There is however no requirement for the tenant to have representation, of course they may still choose too anyway.
We can undertake a free initial assessment of surgery leases to determine.
If instructed to undertake a lease rent review, our service will include the following:
BW Healthcare Surveyors team have considerable experience helping GP Practices with their lease rent reviews. We pride ourselves on our no-nonsense approach and highly competitive fee structures. We will manage the whole process from start to finish and keep you up to date with our progress on a regular basis.
Should you have any questions or queries in regards to any of the above or would like to discuss your circumstances with one of our expert advisors please don’t hesitate to get in touch on 0114 4420098 and we would be more than happy to help.
Sue Pyatt, Practice Manager
Francis Mulhern, Bretton Medical Practice Peterborough
Dr Adnan Mohammad, GP Partner, Newsome Surgery, Yorkshire
Jill Foster, Practice Manager, Beacon Primary Care, Lancashire