Five things about Sale and Leaseback you probably didn’t realise...
When you think about the Sale and Leaseback of doctors surgeries you may see it as an opportunity for the partners to release equity from the property. However you may have wondered how the GP practice will continue to run after the premises have been sold, the terms of the lease that are entered into with the new landlord, and what the other advantages are to the GP partners.
A Sale and Leaseback scheme can however have a number of benefits to the partners which you may not have realised:
- Doctors are not in a situation where they face a shortfall from the reimbursement they receive from the PCT and are having to fund the property from their own resources as the rent is usually set at a level not exceeding that set by the District Valuer
- During a partnership change, incoming/existing doctors would no longer have to buy out the departing doctor for their share in the property, thus removing the need for the incoming doctor to take on a sizable loan. This may well make the task of recruiting new partners easier
- The leases are assignable to the other or new partners, thus extinguishing future liability for the departing doctor
- Doctors considering career breaks would find it beneficial as the buying and selling of their share when they join or leave would no longer be necessary
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