GP Surveyors managed to obtain a fantastic Notional Rent increase above the District Valuer’s initial offer. Read Aintree Park Group Practice s case study to find out how we achieved such a boost in the practices income.
The Aintree Park Group Practice is situated on two sites in Liverpool; one in Orrell Park and the other in Aintree, and has a patient list size of 12,700.
The Practice had been on Cost Rent and had never been provided a Notional Rent figure. GP Surveyors were instructed to see if the Notional Rent figure might have exceeded the Cost Rent.
John Lawes in the Practice Manager explains; “We felt that there was scope for an improvement and GP Surveyors were obviously experienced in this area. Having spoken initially to our Client Manager Mark it was apparent that they felt the same and at the end of the day we had nothing to lose.”
Paul Conlan, Managing Chartered Surveyor at GP Surveyors who was the assigned Surveyor in this case explains; “The Cost Rent Scheme is no longer used. It previously existed for new extended or refurbished surgeries. However, many surgeries still remain on this scheme, as this is how they have been historically reimbursed and have never swapped to Notional Rent.”
“When the 3 year review falls, it is essential to have premises valued under the Notional Rent basis”
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.
After looking at the case GP Surveyors confirmed that we felt that the Notional Rent figure would now exceed Cost Rent and we wrote a letter to PCT requesting a Notional Rent figure for the Practice.
The local PCT instructed the District Valuer (DV) to provide a Notional Rent figure to them and upon receipt of the DV’s Report, a figure was offered to the Practice which after consideration they decided to reject.
“The whole process was smooth and painless and required very little of my time”
The PCT instructed the District Valuer to discuss and negotiate with GP Surveyors, where we were able to subsequently attain several thousand pounds more than the PCT’s offer which equated to a 21 per cent increase on the original figure.
John Lawes concludes; “Any additional income to the Practice is welcome. It gives us opportunities for improving patient care and to invest in the upkeep of our building. Other GP surgeries should challenge their DV valuation because it is potential additional income which is much needed given current economic climate. The whole process was smooth and painless and required very little of my time.”
We hope you found our Aintree Park Group Practice case study to be useful. To book a review of your Notional Rent please contact us today and we will be happy to help.