Your essential guide to filling in the CMR1 form

CMR1 form

GP Surveyors team of specialist experts have prepared this quick guide to help you and your practice fill in your CMR1 form accurately and avoid any potentially costly errors.

What is a CMR1 form?

A CMR1 form is issued to practices by the NHS/ICB to begin the rent review process. The CMR1 form is sent in an Excel spreadsheet format and is used by the District Valuer and NHS England to determine the space that qualifies for NHS rent reimbursement within the practice.

When will you receive your CMR1 Form?

Your practice should receive your form before your triennial review date. However, we’d recommend that you seize the initiative and request a copy of the forms, from your NHS/ICB 1-2 months prior to your review date, in order to pre-empt possible delays.

Filling in your CMR1 form

It is essential that you fill in your CMR1 form accurately, as any errors could inadvertently lead to a reduction in your practices rent reimbursement or delay the process.

Follow these simple steps to avoid the most common CMR1 form mistakes;

Check all reviews are up to date – if you have not completed a CRM1 form for more than one review date, make sure you fill out and file a separate form for each review date. This will ensure that your surgery is assessed for each three-year review period.

Complete every section – thus avoiding the form being returned and delaying the rent review process.

Include improvements to the practice – regardless of how minor you believe them to be, any improvements to the practice could result in an uplift in your practices rent reimbursement.

Include all funding received for improvements and extensions – it is paramount the total cost of the work, including any funding and the practice contributions, are accurately input.

Include all car parking spaces – make sure your total in section 7, includes; patient, accessible and staff. A common mistake we see, but one that will make a difference.

CMR1a Section:
Include all rooms and usable spaces; this includes toilets, store cupboards, lofts and basements. Any space not included might not be assessed.

Ensure you list each room’s usage for each session – use the designated numbers (1 to 4) to denote the room’s usage if you leave a session empty it’s automatically classed as vacant. Filling out this section thoroughly means all of your surgery will be assessed.

Private and non-contracted use (including sessional use for a service charge)
This is an extremely complicated area and we suggest you seek specialist advice to discuss the specific circumstances at your practice.

GP Surveyors are here to help

If you have any further questions regarding your CMR1 form or would like help completing your form, just get in touch and one of our team will be happy to help.

 

Forty Willows Surgery, Middlesex – Market Valuation

Market Valuation Forty Willows Surgery Middlesex

Dr Mills, a retired owner of Forty Willows Surgery in Middlesex required a Market Valuation for her GP practice as she wished to sell her share to the practising partners.

Having found GP Surveyors online Dr Mills got in touch. Dr Mills spoke with one of GP Surveyors’ Client Management team who comprehensively explained our Market Valuation service. Our terms of service letter was then sent out, so the Doctor could decide whether to proceed in their own time. Having read all the details, Dr Mills was happy with the service and fees and instructed GP Surveyors.

One of the firm’s highly experienced primary care surveys then inspected the property. The surveyor undertook a ‘Red Book’ Royal Institution of Chartered Surveyors (RICS) Valuation. This is an extensive survey of the practice, including detailed measurements, drawing up of a floor plan and photo documenting the entire interior and exterior of the property. This inspection method is globally recognised and adheres to RICS standards, ensuring accuracy and reliability.

Once the survey was complete, the surveyor sent Dr Mills a detailed report outlining the practice’s value and their reasoning and evidence to support this valuation. With the Market Valuation complete Dr Mills proceeded to sell her share of the practice to the other partners.

Dr Mills stated:

“I am extremely happy with the service I received from GP Surveyors. The level of professionalism was exemplary throughout and I was satisfied with the outcome of the valuation.”

Before proceeding with the disposal or acquisition of any GP practice premises, it is essential to obtain a current Market Valuation. GP Surveyors recommend that a Market Valuation is valid for three months.

Engaging a specialist primary care surveyor for this task is critical, as the valuation criteria for a GP practice differ from those for general commercial properties. To ensure accuracy, the surveyor needs access to comparative data on rental incomes of similar GP practices in the area. Experienced healthcare surveyors will have extensive recent comparative data, which is vital for producing an accurate Market Valuation.

If you require a market valuation for your GP surgery, please contact our friendly team today.

Tillingham Medical Centre, Essex – Sold

SOLD

Investment Summary

GP Practice
• Initial rent: £ 23,550 per annum
• Patient list size: 5,497
• FTE GPs: 3
• Tenants internal repair lease (TIR)
– Term: 15 year term (from TBC)
– Break Clauses at 5 and 10 years
– Rent reviews: every 3 years
– Next rent review: 3 years from completion
– VFM Approved

Key Property Features

• Ground floor area: 154 sq m
• First floor area: 25 sq m
• Car parking spaces: 12
• Building type: Purpose built practice

Tillingham Medical Centre in Essex is a fantastic investment opportunity, new to the market. It is a purpose-built medical practice offering two floors of accommodation. A sizable tarmac car park is situated to the front of the property with further parking available to the side and rear of the property. The property provides a total of 12 car parking spaces.

Visitors enter the property into a lobby, leading to a larger reception area and then through to a waiting area. To the rear of the reception is a large office space and dispensary. The ground floor has a corridor running from the waiting area and reception through to the rear of the property. Two consultancy rooms, two treatment rooms and a staff room are accessible off the corridor. A further office is located at the rear of the property, accessible from the staff room. Facilities include two WCs. The ground floor has a total floor area of 154 sq. m.

The first floor is accessible via a stairwell, located off the reception area and behind the entrance lobby. The attic is 25 sq. m and is utilised for filing and storage purposes.

Click the floorplan to enlarge.

Contact

Rebecca Reynard
Business Development Manager

0114 281 5850
[email protected]

GP Surveyors gives notice to anyone who may read these particulars as follows:
1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not indeed to constitute part of an offer or contract.
2. Any information contained herein (whether in text or photographs) is given in good faith but should not be relied upon as being a statement of representation of fact.
3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order.
4. The photographs appearing in this brochure show only parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs.
5. Any areas, measurements or distances referred to herein are approximate only.
6. Where there is a reference in these particulars to the fact that the
alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning regulations or other consents have been obtained and these matters must be verified by any intending purchaser.
7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an option and not by way of statement or fact.
8. All areas quoted are expressed as Net Internal Area (NIA) in accordance with the RICS Code of Measuring Practice 6th Edition and Guidance Note 60.
9. All prices and rents are exclusive of VAT but may be liable at the prevailing rate.

GP Surveyors team grows due to popular demand

Due to the success of our fantastic team in 2023, GP Surveyors’ list of happy clients is so long that we have had to take on additional staff to meet the demand! We are incredibly pleased to introduce you to our latest recruits, Ella Presley, and Julie Oliver.

Ella graduated from Sheffield Hallam University’s Real Estate BSc (Honours) course last year and has become a welcome addition to our Surveying team. She has joined us as a Graduate Surveyor and is currently undergoing our rigorous training scheme. Ella is extremely busy inspecting practices across the UK to build her caseload and help our clients with their notional rent reviews and market valuations.

Julie joins the GP Surveyors client services team as a Client Manager. Julie is an extremely experienced client manager, having worked across a variety of sectors over the last 30 years. During the past three years, Julie has been employed in the primary care property sector gaining invaluable experience and knowledge. If your case is allocated to Julie, you can rest assured that you are in very safe hands.

 

Church Lane Medical Centre, Lincolnshire – Sold

Offers Over: £900,000

Bids Closed

Investment Summary

GP Practice
• Actual rent: £59,000 per annum
• Patient list size: 8,800
• FTE GPs: 4
• Freehold
• Lease: Full tenants repairing and insuring lease (FRI)
– Term: 15 years
– Lease commenced: 27th Feb 2023
– Lease expires: 26th Feb 2038
– Break Clauses: none
– Rent reviews: Every three years
– Next rent review: 27th Feb 2026

Key Property Features

• Ground floor area: 373.15 sqm
• First floor area: 68.31 sqm
• Car parking spaces: 21
• Building type: Purpose Built – 1993

Church Lane Medical Centre in Lincolnshire is a fantastic investment opportunity, new to the market. It is a purpose-built medical practice with a tarmac car park situated to the front and side of the property providing a total of 21 car parking spaces.

Visitors enter the property into a lobby, leading to a reception desk and a large waiting room. Two toilets are accessible from the waiting room as well as access to the boiler. Behind, the reception area are two store rooms, a staff room and two large admin rooms. You exit the waiting area to the right of reception where there is a corridor leading to stairs to the first floor and a large corridor to access the rest of the ground floor. To the right of the ground floor corridor are six consultancy rooms and two storerooms. To the left of the corridor there are three consultancy rooms, a phlebotomy room and a treatment room, as well as a fully accessible toilet, from which a further storeroom can be accessed. The ground floor is a total of 373.15 square meters.

The first floor contains an office, a staff kitchen, and a large meeting room, as well as two staff toilets. The first floor is 68.31 square meters.

Click the floorplan to enlarge.

Contact

Kelly Cooke
Business Development Manager

0114 281 5850
[email protected]

GP Surveyors gives notice to anyone who may read these particulars as follows:
1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not indeed to constitute part of an offer or contract.
2. Any information contained herein (whether in text or photographs) is given in good faith but should not be relied upon as being a statement of representation of fact.
3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order.
4. The photographs appearing in this brochure show only parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs.
5. Any areas, measurements or distances referred to herein are approximate only.
6. Where there is a reference in these particulars to the fact that the
alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning regulations or other consents have been obtained and these matters must be verified by any intending purchaser.
7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an option and not by way of statement or fact.
8. All areas quoted are expressed as Net Internal Area (NIA) in accordance with the RICS Code of Measuring Practice 6th Edition and Guidance Note 60.
9. All prices and rents are exclusive of VAT but may be liable at the prevailing rate.

Sheffield Children’s Hospital Snowflakes raise £377k

GP Surveyors Sheffield Children's Hospital Charity snowflake
GP Surveyors snowflake

The Children’s Hospital Charity snowflakes are now bringing festive cheer throughout South Yorkshire by illuminating multiple buildings across the region. GP Surveyors are proud to have been able to help such a great cause, by sponsoring one of the 479 snowflakes.

GP Surveyors chose to support the charity this year because of the amazing work that all the staff undertake. Unfortunately, several of the team have had cause to need this fantastic care this year, with one of the team being a regular visitor. Rebecca Reynard’s son Sidney was born with stage five chronic kidney disease and has required multiple visits to the hospital, always receiving first-rate care and support for the whole family.

The-Reynards
The Reynard’s – Sidney, Rebecca & Steve.

 

Rebecca Reynard, Business Development Manager, GP Surveyors, said:

“We just wanted to give something back to the Children’s Hospital and contribute towards helping others and what better way than to bring a bit of Christmas cheer with a twinkly snowflake!”

The big switch on – Gracie O’Sullivan & family

The big switch-on took place on Monday 4th December with dozens of beautiful snowflakes lighting up the Sheffield Children’s Hospital. It was a fantastic festive occasion and the rain couldn’t dampen people’s spirits, the brass band made sure of that! Ten-year-old Gracie O’Sullivan had the honour of switching on the snowflakes on behalf of family-run business Supreme Auctions, this year’s switch-on sponsor.

The twinkling snowflakes are also illuminating many other buildings across the region, including the Ryegate Children’s Centre, the Becton Centre for Children and Young People, Sheffield City Hall, St John’s Church, Owlerton Stadium, the Homes-by-Holmes building in Chesterfield, The Centre in Brinsworth and Woodhouse Community Hub and Library. Also supporting the cause this year are Crystal Peaks Shopping Centre and the Alhambra Shopping Centre in Barnsley.

This year’s snowflake appeal has been an immense success, seeing a whopping £377k raised, which will be going towards the building of the new National Centre for Child Health Technology. In total, the snowflake appeal has raised more than £2.5m for Sheffield Children’s Hospital since it first began in 2004.

Tchad Western, Chief Fun Officer at The Children’s Hospital Charity, said:

“We are delighted to have this incredible amount pledged for our snowflake appeal this year. It has become a highlight of the festive season for the city and the money raised will help Sheffield Children’s where it is needed most.

“We are so grateful to every individual, family, business, community group, school, street and suburb that has united behind our fundraising this Christmas. Your support will help change the lives of young patients at Sheffield Children’s for generations to come.”

Stoneycroft Practice – Sale & Leaseback Case Study

Stoneycroft-sale-and-leaseback

Sale and Leaseback - GP Surveyors

Stoneycroft Medical Practice in Liverpool, a thriving purpose-built practice was owned and occupied by three GP Partners who were all looking to retire and release their equity from the property.

Having previously carried out the surgeries Notional Rent review, the partners contacted GP Surveyors to advise them upon the potential Sale and Leaseback of their surgery.

Dr. Liz Bainbridge, (former part-owner) commented:

“Three years ago, GP Surveyors worked successfully for us to secure a significant uplift in the Notional rent paid annually by NHSE for our Practice building. So, when planning our retirement and succession for the Practice we had no hesitation in returning to GP Surveyors for advice regarding the most appropriate HoTs for a new lease and then the sale of the building.”

The Partners met with Rebecca Adams (GP Surveyors, Business Development Manager) for a full consultation of their options. Option one was to recruit new partners to buy out the existing partners and take over the GMS contract. Option two was to recruit new partners who did not want to buy in and become landlords, with a lease in place between themselves and new GPs as tenants. This lease would then be sold. Option three was the sale and transfer of the property and GMS contract to an alternative provider. Option four was to transfer the GMS Contract to an alternate provider, whilst agreeing to a lease in tandem with the alternate provider. This lease would then be sold. Option five was to merge with a neighbouring practice and put a lease in place between the existing property-owning partners (Landlords) and the GP’s from the neighbouring surgery (Tenant’s). This lease would then be sold.

Having discussed their specific situation and requirements with Rebecca, the Partners decided that option five was the most realistic, as a neighbouring surgery had already expressed interest and were looking to expand. GP Surveyors were therefore instructed to proceed on this basis.

The next step in the process was for Rebecca to consult with the Stoneycroft partners and the incoming practice partners to identify their lease requirements. The Stoneycroft partners were seeking to maintain investment value and this needed to be balanced with the incoming partner’s desire to have a lease that the NHS body would approve as value for money, when an application for financial assistance was made under the Premises Cost Directions.

Once Heads of Terms were agreed and signed by all the practice partners, Rebecca sent them to the practices’ solicitors, Hill Dickinson LLP, for them to draft the surgeries lease. The lease was then finalised and successfully passed through the NHS lease approval process first time.

Dr. Liz Bainbridge, commented:

“GP Surveyors worked seamlessly with our Solicitor at Hill Dickinson to produce Heads of Terms for the new lease, and the guidance of the team, particularly from Paul Conlan and Rebecca Adams, was invaluable in guiding us away from any potential pitfalls. This enabled the prompt preparation of a new lease that was suitable for all parties involved, whilst also complying with NHSE criteria, and our Practice merger progressed as planned.”

The next stage in the process was for GP Surveyors to begin to market the surgery. GP Surveyors developed bespoke sales literature, including the finalised lease, photographs, and floor plans of the property. Stoneycroft Medical Practices’ sales literature was then sent to GP Surveyors’ extensive database of over 300 specialist primary care investors and the property listed on our website.

Several suitable offers for the property were received, and Rebecca began negotiations with the potential purchasers to ensure the best outcome for the Partners. Having financially qualified the interested parties’ final bids, Rebecca presented them to the Partners, advising as to which offer GP Surveyors consider would be most beneficial. The Partners’ final decision was to accept the offer of a private investor, who held a portfolio of other primary care premises. Rebecca then managed the process through to completion and exchange.

GP Surveyors’ Sale and Leaseback of Stoneycroft Medical practice achieved a sale price that the departing partners were very pleased with and enabled them to release their equity and enjoy their retirement.

The new GPs continued to practice from the premises under the lease, with the security that the lease rent would be reimbursed by the NHS body. Succession could also be eased, as new partners no longer need to raise significant funds to buy into the Practice.

Dr. Liz Bainbridge, commented:

“GP Surveyors offer a wealth of experience and expertise, and we found the business contract we agreed with them was straightforward and easy to understand, giving us confidence to allow them to undertake the work necessary for us, whilst we continued our busy lives in GP practice. The contract came with no hidden costs, so at the start of this process we had a very clear idea of the likely end price to us for their professional input, so we could be sure of financial implications at an early stage of this whole process.

Throughout the sale process we were well supported by Rebecca Adams, whose warm professionalism and positivity helped keep the whole sale process moving forward to successful completion. A job well done by GP Surveyors.”

Boosting GP Practice income in challenging times

gp notional rent

With rising inflation and soaring energy costs, coupled with the aftereffects of the pandemic, we understand that practices’ finances are currently under extraordinary pressure. Now more than ever GP surgeries must make sure that they are receiving the appropriate income. As part of this process it would be highly advisable for  practices to ensure that the Notional Rent the surgery receives is fair and reasonable and in line with the local area.

Checking and challenging a GP practices Notional Rent figure

Under the terms of the GP contract, practices are entitled to obtain a second opinion of District Valuer Services (DVS) valuation. A practice has three years to appeal the proposed figure, providing they do not accept. The three years starts from the date stated on a practice’s Notional Rental figures letter (CMR6). When seeking a second opinion on the valuation, it is highly advisable to use an experienced Chartered Surveyor who specialises in primary care premises.

It is important to be aware that the DV’s Notional Rent valuation is purely their opinion of the value of the practice premises and this can be challenged. However, a challenge must be supported by comparable evidence of rentals prevailing on other primary care medical properties in the locality. This evidence is not widely available in the public domain, hence the need for an experienced, specialist firm to undertake this work.

Once a surveyor is instructed they will check your Notional Rent figure and you will either be given reassurance that your reimbursement is at the correct level or you will be advised that a challenge would be worthwhile.

Successful Notional Rent challenges

If the challenge is successful, NHS England should begin to pay the practice the increased Notional Rent accordingly. Successful challenges are backdated to the practices review date and the practice should receive the back pay accordingly.

Practices should seek a second opinion from a specialist surveyor every time they receive a new Notional Rent figure from NHS England (usually every three years). Even if a practice has not made any physical improvements to the premises, its value can be increased by other external factors. A surgery’s value may have simply gone up with the market, which can change significantly over three years. During this period, a specialist surveyor is likely to have gathered additional up-to-date comparable evidence, which can be used to support a challenge for an increase. Even if a practice received a large Notional Rent increase last time, they should still seek a second opinion.

Notional Rent increases

GP Surveyors negotiate average Notional Rent increases of 8% per surgery, over and above the DVS initial valuation. Some Notional Rent cases result in increases vastly above the average.

 

*Statistics based on agreed figures from 2018- Sept 2022.

GP Direct, Middlesex – Notional Rent Review

GP Direct Middlesex Notional Rent Review

Long term client GP Direct, Middlesex benefits from another Notional Rent review

GP Surveyors first case for GP Direct was in 2004 when we conducted their notional rent review, securing them a healthy uplift in rent reimbursement. Since the success of the practice’s first review the partners have instructed us to undertake their subsequent notional rent reviews.

The latest review was undertaken following a major refurbishment and extension of the practice. The property comprises three former residential premises, comprising two semi-detached houses joined through an extension. The quality of the refurbishment is to an extremely high standard throughout, making the property on a par with a modern purpose-built surgery.

When the practice received their latest Notional Rent figures from NHS England, they contacted their Client Manager  to instructed GP Surveyors again. The partners feeling that the District Valuer’s (DV) figure did not reflect the improvements made to the surgery.

Premises inspection

The next step in the process was for the Client Manager to organise for one of our specialist surveyors to inspect the surgery and begin the practice’s Notional Rent review. On this occasion the case was allocated to, Tom Simpson, who visited the surgery to conduct a full inspection. A notional rent inspection includes measuring the property in full, drawing up a floorplan, photo-documenting the standard of the premises and confirming the use of all the floor space with the practice.

Reviewing the practices Notional Rent

Having completed the property inspection Tom compiled all his findings. He cross-checked the DV’s proposed figure against GP Surveyors database of comparable premises evidence to ascertain if GP Direct had a case to challenge the DV’s Notional Rent valuation. When analysing GP Direct against comparable premises in the locality, there proved to be solid evidence to move forward with a challenge to the DV’s initial opinion of the surgery’s Notional Rent.

The challenge was based on the following factors:

  • Low unit rate (£ per sqm) in comparison to comparable practices in the locality
  • Inclusion of air conditioning in reimbursement
  • Floor areas eligible for reimbursement.

DV negotiations

To undertake negotiations Tom exchanged floorplans, measurements, and evidence with the DV. Following talks Tom achieved a fantastic result, securing a substantial increase of 17.52% above the DV’s initial Notional Rent valuation.

As a result of the case over fifty square metres of the practice have become eligible for rental reimbursement, the unit rate has increased substantially and the unit rate of rooms with air conditioning has increased.

The partners were incredibly pleased that GP Surveyors had secured such a fantastic increase in Notional Rent for the practice. Omer Hussein, Business Manager of GP Direct commented:

“GP Surveyors supported us with a complex rent review following a major refurbishment and extension of our main site. We found them to be professional and focused on the job at hand throughout the process. We were very satisfied with the final outcome they achieved for us.”

The increase Tom secured resulted in a fantastic boost to the practice’s annual income and in turn is highly likely to have increased the investment value of the property.

 


Review your GP practices Notional Rent

We hope you have found our Middlesex GP practices Notional Rent case useful, see practices case studies from your area here.

If you would like GP Surveyors to carry out a Notional Rent review for your practice, or you have any further questions please contact our team today.

Griffiths Drive Surgery, Market Valuation

West Midlands GP Market Valuation

Market valuation turned around at the double.

Dr Thomas and Dr Bilas required an up-to-date Market Valuation for the pending sale of their practice premises, Griffiths Drive Surgery in Wolverhampton, as both Doctors planned to release their equity from the property and become Landlords. Dr Thomas planned to retire and Dr Bilas to continue to practice with another partner with a lease in place to regulate the occupation of the premises.

Dr Roman Bilas & Dr Andrew Thomas:

“We have used GP Surveyors since 2010 when the premises were on the Cost Rent Scheme. GP Surveyors valuations have helped the practice obtain realistic increases in Cost Rent, proving to be very cost-effective and therefore where our first port of call for our Market Valuation.”

The partners contacted GP Surveyors to obtain the current Market Valuation of the property before proceeding with the sale, as the practices last valuation was two years previously. This course of action is one GP Surveyors would always advocate. We advise all our primary care clients that a Market Valuation is valid for up to 3 months as the market is subject to change.

Griffiths Drive Surgery’s valuation was a matter of urgency as there were already various interest parties looking to purchase the premises. The Doctors spoke with their Client Manager, Paul Hardman who upon receiving instruction organised for one of our highly experienced valuation surveyors Tom Simpson to visit the property.

Tom Simpson, Valuation Surveyor:

“I carried out a full survey of the practice undertaking what is known as a ‘Red Book’ Royal Institute of Chartered Surveyors (RICS) valuation. Drawing upon GP Surveyors’ vast database of comparable GP property evidence and my experience, I produce a report for the practice, detailing the value of the property and my reasoning.”

As the Doctors were in urgent need of the valuation, Clare worked diligently to ensure their report was turned around in a very short time frame and all parties were able to proceed as planned.

Dr Roman Bilas & Dr Andrew Thomas were incredibly pleased with the service and turn-around of their valuation:

“We are very pleased with the Market Valuation GP Surveyors carried out. It was a matter of some urgency in view of the pending sale of the premises on my (Dr Thomas’) retirement. GP Surveyors understood our requirements and their Surveyor was polite and courteous. We had a very prompt visit and valuation report the same evening. They are a credit to their profession.”

GP practice market valuations

Obtaining an up-to-date Market Valuation is always prudent before any acquisition or disposal of a primary care premises. Instructing specialist primary care surveyors to undertake a Market Valuation is essential, as the basis of valuing a GP surgery differs from the valuation of other commercial premises. A healthcare surveyor would usually value the practice’s property based on the rental income e.g., Notional Rent. Comparable evidence of similar GP practice rental income in the given area is also paramount to a surveyor producing an accurate Market Valuation. Experienced healthcare surveyors should also have access to a substantial amount of up-to-date comparable evidence, which enables them to produce a reliable Market Valuation.

If you would like GP Surveyors to carry out a market valuation for your practice, or you have any further questions please contact our team today.

Glendale Medical Centre, Middlesex – Notional Rent

Middlesex Notional Rent

Middlesex practice benefits from Notional Rent review, again!

GP Surveyors first worked for Middlesex practice, Glendale Medical Centre in 2014 and we have conducted their Notional Rent reviews ever since. When the practice received their latest Notional Rent figures from NHS England they got in touch with GP Surveyors straight away to check if an increase could be secured again.

The practice were then allocated one of our highly experienced Client Managers who talked the partners though GP Surveyors Notional Rent review process. The partners were once again happy to instruct us and proceed with their review.

Premises inspection

Our Client Manager duly organised for one of our Senior Surveyors, Charlotte Wilkinson, to visit the surgery and begin the practice’s Notional Rent check. Charlotte visited the surgery and carried out a full inspection, including measuring the property in full, drawing up a floorplan, photo-documenting the standard of the premises and confirming the use of all the floor space with the practice.

Checking the practices Notional Rent

On her return to the office, Charlotte compiled all her findings from the inspection. She then cross-checked the practice’s proposed Notional Rent figure against GP Surveyors vast database of comparable GP practice evidence to ascertain if the surgery had a case to challenge the District Valuers (DV) Notional Rent valuation. When comparing The Glendale Medical Centre with similar premises in the locality, she found there to be sufficient evidence to move forward with a challenge to the DVs initial opinion of the surgery’s Notional Rent.

The challenge was based on the following factors:

  • Low unit rate (£ per sqm) in comparison to practices in the locality
  • The number of practice car parking spaces eligible for reimbursement
  • Car parking rate (£ per space) in comparison to practices in the locality.

District Valuer Negotiations

Once Charlotte had compiled her case, she sent her valuation to the DV to begin negotiations. Floorplans, measurements, and evidence were exchanged, and Charlotte was able to successfully negotiate a fantastic increase of 6.62% above the DVs initial Notional Rent valuation.

The partners were incredibly pleased that GP Surveyors had once again secured the practice an increase in Notional Rent:

We’ve used GP surveyors a number of times to challenge the notional rent assessments on our premises and they have managed to obtain an additional uplift on each occasion, suggesting that they clearly understand the market. As a practice we had to do very little, as GP surveyors took over all the negotiations with NHSE, and their fees are only charged based on a successful outcome! For these reasons we would recommend GP surveyors to any practice who has just received a notification of notional rent review.

The increase Charlotte secured resulted in a fantastic boost to the practice’s annual income and in turn is highly likely to have increased the investment value of the property.

 


Review your practices Notional Rent

We hope you have found our Middlesex Notional Rent Review case useful, see our full range of Notional Rent case studies here.

If you would like GP Surveyors to carry out a Notional Rent review for your practice, or you have any further questions please contact our team today.