Doctors who receive Cost Rent may have done so for several years as this is how they have historically been reimbursed. There is often lack of knowledge regarding Doctors rent, as many Doctors and Practice Managers may not know that after the first few years of receiving Cost Rent they could receive a higher level of reimbursement if they were on Notional Rent
The Cost Rent Scheme, as its name implies, is more closely associated to the costs involved at GP surgeries, as opposed to the associated rental levels. Its purpose was to reimburse the cost of finance from providing new or considerably modified buildings.
If a practice is on Cost Rent, GP Surveyors recommend that they request a Current Market Rent (CMR) review from the PCT triennially as it may be financially beneficial to move over to Notional Rent to ensure that equity is being maximised. If the practice receives Cost Rent the onus falls with that practice to request CMR reviews from the PCT.
GP Surveyors can not only provide advice on this process, but can work for the surgery to ensure that they are receiving the maximum level of reimbursement they are entitled to.
Once a CMR figure has been requested comparison can then be made as to whether the practice would be better off on the alternative scheme as opposed to the Cost Rent Scheme. This investigation does not mean just getting the District Valuers opinion but rather having it valued and negotiated by an experienced firm of Chartered Surveyors.
If a Notional Rent figure has been requested the surgery is not obliged to move from Cost Rent, however once the transition has taken place the surgery cannot elect to move back onto Cost Rent.
GP Surveyors can advise on any Cost Rent Scheme issue to ensure that optimum returns and profitability are achieved. We have a number of Case Studies of clients who have benefited together with positive testimony and Feedback.
As a company our aim is to add value to Doctors wherever we can. For more information about how we can help your surgery please Contact GP Surveyors on 0845 143 0019 to speak to an advisor or e-mail us on This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
