Case Study – Notional Rent

It pays for surgeries to check every Notional Rent review.

GP Surveyors have checked and challenged Weaver Vale Practices’ Notional Rent on two separate occasions, successfully securing the Cheshire practice an uplift on both their 2014 and 2017 figures.

Weaver Vale Practice first got in touch with GP Surveyors in 2016 following advice from their accountant. Dawn Randles the surgeries Practice Manager had received the surgeries 2014 Notional Rent figure and the practice’s accountant advised Dawn that all practices on Notional Rent are eligible to check and challenge the District Valuers (DV) assessment. Dawn duly got in touch and spoke with one of GP Surveyors specialist Client Managers, following her consultation, Dawn and the practice partners decided to instruct GP Surveyors to check the practices 2014 Notional Rent figure.

Tom Simpson, one of our highly experienced Surveyors was allocated the case and visited the surgery to carry out a full inspection of the property. To ascertain if the surgery had a case to challenge the DVs’ Notional Rent valuation, Tom cross-checked his findings with the surgeries proposed Notional Rent figure and against GP Surveyors vast database of comparable evidence. When comparing Weaver Vale Practice with like for like premises in the locality Tom found there to be substantial evidence to move forward with a challenge to the DVs’ initial opinion of the surgeries Notional Rent.

The basis for the 2014 Notional Rent challenge

The DVs’ Notional Rent figure seemed out of line with the facts prevailing at the practice and GP Surveyors comparable evidence.

• Weaver Vale Practice is a 1980’s purpose-built surgery situated in Runcorn Cheshire and GP Surveyors believed the properties Notional Rent should be placed more in line with other purpose-built surgeries in the locality.
• GP Surveyors’ surgery areas were larger than those set out in the DVs’ figures.
• The surgery had more car parking spaces than the DV stipulated.

On this occasion the challenge proved to be a complex one, owing to a variety of factors, including Weaver Vale Practice sharing the property with another surgery and leasing space to a pharmacy.

Following protracted negotiations with the DV common ground could not be agreed upon concerning the level of Notional Rent. The next step in the process was for Tom to follow the Local Resolution Dispute Procedure (LDRP) and a third-party expert to become involved. Unfortunately, on this occasion, a satisfactory outcome was not reached and following advice from GP Surveyors the practice decided to take the case to a formal dispute. The conclusion to the case was that NHS Resolutions ruled in favour of GP Surveyors and the practice on several factors, resulting in Weaver Vale Practice receiving a substantial Notional Rent increase of 44%.

Although this proved to be a lengthy case, the resulting increase in Notional Rent provided a substantial boost to the practices’ annual funding and amounted to tens of thousands of pounds over the 3-year Notional Rent period, as well as significantly increasing the capital value of the surgery.

The practice was delighted with the conclusion, Dawn commented:

“GP Surveyors kept in constant touch, keeping us updated on our position and were happy to attend meetings with the partners. I Would highly recommend them to other GP practices.”

Having been so pleased with the result of the 2014 review, Dawn instructed GP Surveyors again in 2019, to check the surgeries 2017 Notional Rent figures. Tom Simpson took on the case once again and began to cross-check the surgeries figures with our comparable evidence. Tom concluded that there was sufficient evidence to show the market had moved on since 2014 and therefore the DVs initial opinion of the surgeries Notional Rent should be challenged.

The basis for the 2017 Notional Rent challenge

When comparing Weaver Vale Practice to similar purpose-built properties in the locality, GP Surveyors believe that the practices unit rate had been set low.

Tom submitted his report to the DV and then began negotiations to increase the surgeries Notional Rent reimbursements. On this occasion, the process was very straight forward, and Tom was able to successfully negotiate an increase of 3.5% above the DVs initial Notional Rent valuation.

Dawn and the practice were very pleased with the result, Dawn commented:

“This is the second time we have used GP Surveyors to assist with our Notional Rent review and they have been able to bring an improvement in our funding. I have used them for advice on other building matters and nothing is ever too much trouble.”

Although the 2017 increase was a relatively low percentage, the outcome resulted in an increase of several thousand pounds a year to the practice’s funding. Weaver Vale Practices’ 2017 Notional Rent challenge illustrates that it’s prudent for practices to check their Notional Rent figure at each review, irrespective of the outcome of any previous challenge.

 

We hope you have found GP Surveyors, Cheshire Notional Rent Review case useful, to see our full range of Notional Rent case studies here.

 

Long term client in Northern Ireland benefits from another successful Notional Rent review.

GP Surveyors have been working for Drumquin Medical Centre since 2008, checking their notional rent figure on four occasions, netting the surgery a five-figure per year increase on one such occasion.

When the practice received its 2016 Notional Rent figure from the District Valuer (DV) in 2019, they naturally contacted GP Surveyors. Even though the practices 2016 figure had been slightly increased from their 2013 figure, Dr Scully (GP Partner, Drumquin Medical Centre) was keen to obtain a second opinion. Having discussed the matter with Paul Hardman, (GP Surveyors Client Manager), Dr Scully instructed GP Surveyors to proceed with their case and check the DVs proposed Notional Rent figure.

The case was then allocated to one of our highly experienced Chartered Surveyors, Tom Simpson. Having completed his inspection, compiled his finding and compared the initial Notional Rent valuation with our vast database of evidence, Tom concluded, there was strong evidence for the surgery to challenge the DVs initial valuation.

The basis for the Notional Rent challenge

Drumquin Medical Centre is located in County Tyrone, Northern Ireland and is a 2001 purpose-built surgery in reasonable condition.

• Low unit rate
  The DVs notified figure seems out of line with the facts prevailing at the practice and GP Surveyors comparable evidence of purpose-built surgeries, in the locality.

Tom submitted his report to the DV and then began negotiations to increase the surgeries Notional Rent reimbursements. Drawing upon our vast database of comparable evidence in Northern Ireland, GP Surveyors were able to successfully negotiate an increase of 18.3% above the DVs initial Notional Rent valuation. Which was an overall increase of 24% between the 2013 and 2016 Notional Rent reviews.

This increase resulted in a significant boost to the surgery’s annual income and the practice’s payment will be backdated to the DVs’ original valuation date and paid in full. The practices increase in Notional Rent is also highly likely to have increased the surgery’s capital value.

Dr Scully was pleased with the overall results of the challenge. He commented:

“The service was outstanding: GP Surveyors personnel clearly have a deep and detailed knowledge of the full range of parameters involved in the agreeing of Notional Rent on GP premises. The time taken to pursue the necessary processes involved was more than acceptable: just a few short months; and I received regular updates. The outcome of the Notional Rent Review was very rewarding and was an outcome that I could not have achieved without GP Surveyors’ help. Finally, the fee payable was very fair.”

Drumquin Medical Centres Notional Rent challenge illustrates that it’s prudent for all practices to check their Notional Rent figures, irrespective of whether the surgery has received an increase from their previous review.

 

Little Park Surgery’s maiden Notional Rent review proves a success

GP Surveyors guided Simon Lovegrove (Premises Manager) and Dr Lynch (Partner) through their practices first Notional Rent review and successfully negotiated the Little Park Surgery a significant increase in their Notional Rent.

Simon explains why the practice chose to contact GP Surveyors:

“In the past we have tried to negotiate an increase in our Notional Rent. Having significantly improved the building we were expecting an increase on our last review but having received the figures and after 12 months of trying to negotiate, we were disappointed to have achieved nothing. So, we sought specialist help from GP Surveyors to manage the appeal process and we are so glad we did.”

Simon first spoke with one of GP Surveyors experienced Client Managers, who explained the Notional Rent review process and fee structure to Simon. As there would be no fee to pay, unless an increase was secured, the practice was assured they had nothing to lose and duly instructed GP Surveyors.

Simon commented:

“At the start of the process we were informed that the review and negotiations with the District Valuer may take some time to complete, but we would be kept regularly updated and GP Surveyors would be pushing the process through for us.”

Tom Simpson, one of GP Surveyors experienced Valuation Surveyors, was allocated the case and an inspection of the surgery premises was arranged. Once Tom had conducted a full inspection of the surgery, he compiled his findings and compared the District Valuers (DV) initial Notional Rent valuation with GP Surveyors vast database of comparable evidence. Tom concluded that there was sufficient evidence for GP Surveyors to challenge the DVs initial valuation of the surgery, on the practice’s behalf.

The basis for the case

The surgeries notified Notional Rent figure seemed out of line with the facts prevailing at the practice and GP Surveyors comparable evidence. The surgeries unit rate and car parking rate were lower than expected when compared to the evidence of similar surgeries in the surrounding area. Tom also found a discrepancy in floor areas, eligible for reimbursement.

Having sent his case, along with supporting evidence to NHS England, Tom began negotiations with the DV and was able to successfully secure an increase in the surgeries unit rate, car parking rate and reimbursable areas. The overall result was a 7% increase in Notional rent, above the DVs initial valuation. This increase resulted in a great boost to the surgeries’ annual income, which the practice was delighted with.

Dr Lynch commented:

“GP Surveyors provided us with regular updates throughout the negotiations, they provide an excellent and independent service for assessing and negotiating Notional Rent with NHS England and the District Valuer. In our case, they successfully negotiated and achieved a significant uplift in our Notional Rent.”

Simon Lovegrove (Premises Manager) and Dr Lynch (Partner) concluded:

“We have no hesitation in recommending GP Surveyors to the primary care market. They are an established company with a comprehensive knowledge of this market. They have the necessary expertise and skills to confidently negotiate in the best interests of practices.”

 

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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.

Orchard House Surgery, Suffolk, receives a substantial increase in Notional Rent.

GP Surveyors have worked for Orchard House Surgery since 2007, carrying out several Notional Rent reviews and gaining the practice a significant increase in reimbursement. When the surgery received their latest figures, Margaret West, the surgeries Finance Manager, got in touch with her Account Manager, Paul Hardman and instructed GP Surveyors to check their figures once again.

Since their previous review, the surgery had undertaken a variety of refurbishment works during 2017 and 2018. These projects comprised of the complete refurbishment of seven consultation rooms and administrative spaces, including new floors, ceilings, lighting, desking and wiring. The 2017 project was part-funded by an ETTF improvement grant and therefore subject to a rent abatement.

As a result of the improvement works the practice was inspected by the District Valuer (DV) on two additional occasions and therefore received three Notional Rent figures from 2016 to 2018. The first valuation was the surgeries triennial Notional Rent review in 2016, the second in 2017 and the third in 2018 were carried out after each improvement project was complete. Although the surgeries’ Notional Rent figure increased with each review, the practice felt that the level of the DVs’ valuation was not truly reflective of the improvements, therefore GP Surveyors were instructed to review the figures.

Once GP Surveyors were instructed to carry out the surgeries Notional Rent reviews, the practice’s case was allocated to one of our experienced Valuation Surveyors, Nathan Young.

To ascertain if the surgery had a case to challenge the DVs’ Notional Rent valuation, Nathan cross-checked the surgeries proposed Notional Rent figures against our vast database of comparable evidence. When comparing Orchard House Surgery with like for like premises in the locality, Nathan found there to be sufficient evidence to move forward with a challenge to the District Valuers (DVs) initial opinion of the surgeries Notional Rent, starting with the 2016 figure.

Nathan’s cases were based on the following factors:

• Orchard House Surgery is a purposed built 1990’s surgery, refurbished to a high specification and therefore it should be placed in line with similar properties in the locality
• Low unit price per square meter
• Low price per parking space

Nathan presented the above case, alongside his comparable evidence to the DV and began negotiations to increase the surgeries Notional Rent reimbursement. Due to GP Surveyors’ strong comparable evidence, the DV agreed upon all the factors in Nathan’s case.

The outcome of the case was that Nathan successfully negotiated the surgery an increase to their 2016 Notional Rent figure. The increase to the 2016 figure enabled Nathan to open negotiations on the subsequent figures, as the starting figure pre improvements had increased. Nathan negotiated a further increase in the 2017 figure due to the first stage of improvement works, which carried through to the 2018 figure, which was again increased further due to additional improvement works.

The overall Notional Rent increase Nathan secured the practice benefited the surgery by thousands of pounds in additional rental income. The increased Notional Rent was backdated to the review date stated on the surgeries CMR6 form and the funds paid to the surgery in a lump sum. In addition, the uplift in their Notional Rent is likely to have increased the capital value of the surgery, significantly benefiting the property-owning partners.

Margaret and the practice partners were delighted with the outcome of GP Surveyors Notional Rent challenge. Margaret commented:

“This is the second time we have used GP Surveyors to assist with our Notional Rent review and once again they have been able to bring about a significant improvement in our funding. I was able to hand everything over to their professional team so very little time or effort was needed from me!”

 

We hope you found the Notional Rent case study of Orchard House Surgery, Suffolk, useful – see all our other case studies here.

Moving from Cost Rent to Notional Rent

Purton Surgery in Swindon contacted GP Surveyors seeking advice on their upcoming move from Cost Rent to Notional Rent. The practice’s mortgage was coming to an end and the surgery had been issued their CMR6 letter from the NHS. The practice was keen to know if they could challenge the District Valuers (DVs) Notional Rent figure.

Kai Howard, Purton Surgery Practice Manager, spoke to one of our specialist Client Managers. They advised Kai that the DVs figure is purely their opinion of the value on the premises. Under the terms of the GP contract practices are entitled to get a second opinion of the DVs valuation, irrespective of the fact the surgery has been on Cost Rent. they proceeded to explain the Notional Rent review process to Kai and that there would be no fee for the surgery unless an increase in Notional Rent was secured for the practice. Once the Client Manager had finished the surgeries’ initial consultation, Kai decided to instruct us to begin a review of the surgeries Notional Rent figure.

One of our highly experienced Surveyors, Emma Pratt, was allocated the case and an inspection of the premises was arranged. Once Emma had carried out a full inspection of the premises, she compiled her findings and compared the DVs’ initial Notional Rent valuation with our vast database of comparable evidence. Emma concluded that there was sufficient evidence for GP Surveyors to challenge the DVs’ initial valuation of the surgery, on the practice’s behalf.

The basis for the case

The surgeries notified Notional Rent figure seemed out of line with the facts prevailing at the practice and GP Surveyors comparable evidence. Specifically, the surgeries unit rate and car parking rate, which had been set low when compared to the evidence of similar surgeries in the surrounding area.

Having presented the case to the DV, Emma began negotiations. Drawing upon our vast database of local comparable evidence, Emma was able to successfully negotiate an increase of 5.76% above the initial Notional Rent valuation. This increase resulted in a great boost to the surgery’s annual income and a substantial sum over the three-year Notional Rent period. The practice was very pleased with the result and the swift conclusion of the case, from instruction to agreement the whole process was completed in just 2 months.

Kai Howard, Purton Surgery Practice Manager had this to say about GP Surveyors Notional Rent service:

“I was very happy with the service I receive from GP Surveyors they were very attentive, knowledgeable and professional throughout the process. The process was non-intrusive and very efficient, with the outcome being that the appeal was successful!”

In addition, the increase in Notional Rent reimbursement has increased Purton Surgery’s capital value.

 

Apollo Surgery Birmingham Notional Rent case study

Long-term client Apollo Surgery, Birmingham benefits from another successful notional rent review.

GP Surveyors have been working for Apollo Surgery for over 12 years, checking their notional rent figure on 5 separate occasions. When the surgery received their latest notional rent figures in 2018, they contact their Client Manager and instructed us to check the District Valuers (DV) proposal.

Since our previous inspection the surgery had carried out improvement works on the premises, therefore, an inspection of the whole premises was required. We dispatched one of our specialist Valuations Surveyors to meet Dr. Prasad (GP Partner) at the surgery and a full inspection of the premises was completed.

Once our surveyor had completed their inspection of the surgery, they compiled their findings. Then to establish the current market rent of the practice a search of our extensive database of comparable rental evidence was carried out. Having examined the evidence our surveyor concluded that there was a strong case to challenge the DVs proposed notional rent figure.

The case for an increase was based upon the following factors;

• Floor areas
  Areas had been excluded which our surveyor believed were eligible for notional rent reimbursement.
• Low unit rate
  The surgery is a purpose-built premises, therefore it should be placed in line with similar premises, in the locality, on a higher unit rate.

Our surveyor then began negotiations with the DV to bring the surgeries notional rent valuation in line with comparable surgeries in the locality. Drawing upon our vast database of local comparable evidence we were able to successfully negotiate a 9.62% increase in notional rent, above the DVs proposed valuation of the surgery. A result the surgery was very pleased with.

This increase resulted in a significant boost to the surgery’s annual income and in turn, is highly likely to have increased the surgery’s capital value.

Reena Prasad, Business Manager, Apollo Surgery concludes:

“Excellent, efficient and very professional service. A successful outcome to our notional rent review, I would highly recommend GP Surveyors.”

Long term client benefits from another successful Notional Rent review.

GP Surveyors have been working with Whetstone Medical Centre for over 10 years, checking and challenging their Notional Rent figure and achieving significant increases for the surgery on two occasions. When Anita Jones, Whetstones Practice Manager, received the surgeries latest Notional Rent figure her first call was to GP Surveyors.

After discussing the matter with her Client Manager, Anita instructed GP Surveyors to check the District Valuers (DV) proposed 2018 Notional Rent figure.

Once we were instructed to carry out the surgeries Notional Rent review, the case was allocated to one of our experienced Valuation Surveyors, Nathan Young. To ascertain if the surgery had a case to challenge the DVs Notional Rent assessment, Nathan began checking the surgeries proposed figure against our vast database of comparable evidence.

When comparing Whetstone Medical Centre with like for like premises in the locality, Nathan found there to be sufficient evidence to put forward a strong case to challenge the surgery’s initial Notional Rent figure.

Nathan’s case was based on the following factors:

• Whetstone Medical Centre is a thriving practice, situated in Birkenhead and based in a purposed built 1970’s surgery, therefore, it should be placed in line with similar properties in the locality
• Larger first-floor area is eligible for reimbursement
• Low unit price per square meter
• Low price per parking space

Having sent his case to the DV, Nathan began negotiations to increase the surgeries Notional Rent reimbursements. Drawing upon our vast database of local comparable evidence Nathan was able to successfully negotiate the surgery an increase of 4.16% above the DVs proposed notional rent figure. This increase resulted in a great boost to the surgery’s annual income and a significant increase over the 3-year review period.

The increased Notional Rent was backdated to the review date stated on the surgeries CMR6 form and the funds paid to the surgery in a lump sum.

Anita and the practice were delighted with the outcome of GP Surveyors Notional Rent challenge.

Anita Jones, Practice Manager, said:

“Excellent service, kept me fully informed at every stage, efficient and friendly service with a successful outcome. I would certainly recommend GP Surveyors.”

Furthermore, the increase in the surgeries Notional Rent is highly likely to have increased the investment value of the property.

Ainsdale Village Surgery Notinal rent case study

GP Surveyors carried out Ainsdale Village Surgeries maiden Notional Rent review this year and we’re pleased to say they had a fantastic outcome.

Dr. Lindsay McClelland, (Principal GP, Ainsdale Village Surgery) first got in touch with GP Surveyors after receiving the surgeries CM6 figures from the District Valuer (DV). The surgery was informed that their rent had been changed from cost rent to Notional Rent. Unfortunately, on this occasion, the surgery was subject to a clawback for the previous 3 years of rent. The clawback was due to the change in rent type not being put in place by the NHS as part of the surgery’s previous review.

Once instructed by Dr. McClelland, one of our highly experienced surveyors, Nathan Young, was allocated the case, and a convenient time was arranged for a full inspection of the surgery.

Nathan met with Dr. McClelland at the surgery and carried out a full inspection of the premises. Nathan then compiled his findings and compared the DV’s initial Notional Rent valuation, with our vast database of comparable evidence. Based on our evidence, Nathan concluded that there was sufficient evidence for GP Surveyors to challenge the DV’s initial valuation of the surgery, on the practices’ behalf.

The basis for the case

Ainsdale Village Surgery is a superbly converted detached house, fitted to a good surgery specification, which is close to that of a purpose-built practice. Therefore, Nathan believed the unit rate attributed by the DV to be low when compared to practices in the locality.

Additional factors included;

• Ground floor areas larger than in DV’s proposed valuation
• First-floor area larger than in DV’s proposed valuation
• Surgeries pram store eligible for inclusion.

Nathan presented the above case, alongside his comparable evidence to the DV and began negotiations to increase the surgeries Notional Rent reimbursement. Due to the findings of Nathan’s inspection and GP Surveyors strong comparable evidence, the DV agreed upon all the factors in Nathan’s case.

The outcome of the case was that Nathan successfully secured a fantastic increase of 13% above the DV’s initial Notional Rent valuation. This resulted in a significant uplift in the surgery’s income, which was a great boost for the surgery and helped mitigate the impact of the NHS clawbacks.

The surgery was delighted with the result, Dr. Lindsay McClelland commented;

“As a practice we were very impressed with the service we received from GP Surveyors. With very little input on my part, we were able to achieve a rent increase and back payment which we were delighted with. The GP surveyors staff kept me updated via telephone and email throughout the process. Excellent service with minimal stress and input from the GP partners.”

In addition, the surgeries increase in Notional Rent is likely to have significantly increased the investment value of the property. Your surgery could be due an increase in Notional Rent just like Ainsdale Village Surgery – contact our team today and check your Notional Rent.

After receiving their initial valuation from NHS England, the Priory Medical Centre in Liverpool instructed GP Surveyors to check their latest Notional Rent reimbursement, and they were pleased they did!

Dr. Steve Connolly, GP Partner, The Priory Medical Centre

“Having used GP Surveyors previously we had no hesitation in requesting their help again for this review. Their specialist knowledge and attention to detail give us great confidence in their service.”

The case was allocated to Chris Kozlowski, one of our highly experienced Senior Surveyors. Chris undertook a full inspection of the premise, establishing accurate measurements and areas. Chris then began his review, comparing the breakdown of the surgeries figures with like for like surgeries in the area and concluded that there was sufficient evidence to move forward with a challenge to the District Valuers (DVs) initial opinion of the surgeries Notional Rent.

The case was based upon the following factors;
• Inaccurate floor areas
• Low unit rate

Chris then began negotiations with the DV and drawing upon our vast database of local comparable evidence, Chris was able to successfully negotiate an increase of 24% above the DV’s initial Notional Rent valuation.

Chris explains; “With regards to the increase in unit rate, we had strong comparable evidence on similar purpose-built surgeries in the area. The DV had also excluded certain areas that were eligible for inclusion. After discussions, the DV agreed to adopt my areas and rates.”

The Notional Rent increase we secured the practice benefited the surgery by thousands of pounds in extra income, a result they were very pleased with. In addition, the uplift in their Notional Rent is likely to have increased the capital value of the surgery, significantly benefiting the property-owning partners.

We hope you have found our Priory Medical Centre case study useful, to see our full range of Notional Rent case studies click here.

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