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The Sale & Leaseback mechanism is a legally binding process with significant ongoing responsibilities and does not suit all scenarios and circumstances. It is therefore important for GP Practices to carefully consider the following aspects when considering whether this is the best option for them:
The main alternatives to a Sale & Leaseback include the following:
Some further background on these is as follows:
This is a straightforward transaction where the property-owning GP (or Doctors) sell the building to another Doctor in the practice. In these instances, we are often instructed to do a Market Valuation of the property for either party. The person who sells then becomes a non-owning GP Partner or retires/leaves the practice.
This is where another GP Practice buys the GP Surgery building and takes on the NHS Contract. The selling practice then becomes part of the buying practice and under their “umbrella”. Again, we can be instructed to value the property for the sale, acting for either party.
There are also some specialist GP companies who acquire GP surgeries (often buying the building as part of that process). These companies operate on a regional and national basis and examples include GTD Limited and SSP Health in the in the northwest, or Operose Health who are Nationwide.
Involves a third party developing a new surgery and the practice entering a long lease.
The model itself is based on the collaboration between GPs (GP alliances, PCNs or Feds) and a social funder, who collectively form a Property Company (PropCo) that will develop and own a scheme and then lease the whole building to the GP(s). The GP(s) will own the majority share of the PropCo and have full control of the building via the lease. On this basis the GPs will be both landlord and tenant but will benefit from the development expertise and low-cost capital provided through the funding partner and with the funder partner taking all the development risk. The GP(s) also are not required to provide any capital or funding guarantees as with other models.
In the first instance we would arrange a TEAMS meeting with the GP Partners to run through a short presentation explaining the benefits and pitfalls of S&LB and answer any questions they may have. Should they wish to instruct us following that meeting, our terms of service would include:
BW Healthcare Surveyors team have considerable experience helping GP Practices through a sale and leaseback. 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 regard 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