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The Cost Rent Scheme is no longer used. It previously existed for new extended or refurbished surgeries. However, many surgeries do still remain on this scheme, as this is how they have been historically reimbursed and have never swapped to Notional Rent.

The Cost Rent Scheme, as its name implies, is more closely associated to the costs involved, as opposed to the associated rental levels. Its purpose was to reimburse the cost of finance from providing new or considerably modified buildings.

It is normally the case that surgeries which are under the Cost Rent Scheme will initially in the first few years receive a higher level of reimbursement than if they were on Notional Rent.

However, in order to ensure that the Doctors equity is maximised, then, when the 3-yearly review falls, it is essential to have the premises valued under the Notional Rent basis. 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.

We recommend that Doctors also have their funding arrangements reviewed as well. It is often the case that the cost of the existing funding can be reduced or the fluctuations caused by interest rates removed.

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. Please Contact GP Surveyors on 0114 281 5850 to speak to an advisor or e-mail us on info@gpsurveyors.co.uk.