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.