Maiden Notional Rent Review pays off for this London surgery.
Earls Court Surgery in London had never double-checked their Notional Rent figure with an independent specialist surveyor before but were glad they did. Mr Parameshwaran the practices Accountant contacted GP Surveyors when he became aware of our Notional Rent review service, thinking it wise to obtain a second opinion of the District Valuers (DV) figure.
During an initial consultation, one of our specialist Client Managers, Carolyne Fairey, talked Mr Parameshwaran through the Notional Rent review service. Carolyne explained that one of our specialist surveyors would visit the property to carry out a full inspection, before undertaking a detailed check of the practices figures against our Notional Rent database. The surveyor would ascertain if the practice were receiving a fair current market rent in comparison with other surgeries in the locality and challenge the District Valuers’ (DVs) opinion if not. Having been happy with the initial consultation, Mr Parameshwaran instructed GP Surveyors to begin Earls Court Surgery’s Notional Rent review.
The premises inspection
Emma Pratt one of GP Surveyors Senior Surveyors was allocated the case and an inspection of the premises organised at a suitable time for the practice. The property was fully measured and photographed, floorplans drawn up, and details of room usage confirmed.
Checking the practices Notional Rent
Emma set to work collating all the information from the inspection and began to compare this against GP Surveyors substantial Notional Rental evidence database. Having compared Earls Court Surgery with premises in and around Earls Court, Emma found there was substantial evidence to support a challenge to the DVs Notional Rent figure.
Negotiations with DV
Emma exchanged the practice’s floorplan, areas and comparable evidence with the DV and began negotiations, regrettably on this occasion the DV did not accept that the practices Notional Rent should be increased.
LDRP and NHS appeals
Owning to the fact that we held a considerable amount of solid comparable evidence the decision was taken to move the case to the Local Dispute Resolution Process (LDRP). Unusually a resolution could not be reached during the LDRP process and GP Surveyors escalated the case to NHS Appeals.
Emma Pratt – Senior Surveyor
“The vast majority of our Notional Rent cases result in a settlement with the DV, but on this rare occasion an agreement could not be reached. As we believed that we had a strong case to support a higher Current Market Rent (CMR) on the property, the case was taken to NHS Appeals for independent determination.”
NHS Appeals duly selected an Independent Advisor to determine the CMR. The Independent Advisor ruled in favour of the practice and that the Notional Rent figure was not in line with current market rents of comparable surgeries.
The result – patience paid off
The result was a fantastic increase of 24.4% above the DVs initial Notional Rent valuation, a result Mr Parameshwaran was delighted with:
Mr Parameshwaran, Earls Court Surgery
“We are very pleased with the efficient, courteous and professional way in which GP Surveyors carried out our Notional Rent Valuation Appeal. They fought hard to win and win they did! A welcome success.”
The increase GP Surveyors secured resulted in a substantial uplift in the practices annual income, and in turn, is highly likely to have boosted the investment value of the property. The increased rental payments were also backdated to the initial review date and paid to the practice as a lump sum.
We hope Earls Court Surgery’s Notional Rent review story has proved useful. We carry out reviews all over the UK and a full range of our Notional Rent case studies can be found here.
Review your practices Notional Rent
GP Surveyors are currently achieving some fantastic increases for our London practices and this body of evidence could directly affect your Notional Rent, if you would like us to check your Notional Rent please contact our team today.