Do you have partners approaching retirement? Are you having issues with partnership recruitment? Would you like to release equity from your practice?
Then Sale and Leaseback could be just the solution for you.
Sale and Leaseback is where the freehold of the GP premises is sold to an investor and a lease is granted back to the practice partners, hence the partners continue to occupy the building and provide contracted medical services. The purchase price will be arrived at by a specialist valuation, based upon the investment value of the property. This price is calculated by checking and capitalising the notional rent and any other income into the practice such as pharmacy rent.
The option of Sale and Leaseback enables General Practitioners to remain in their current premises without the risks and responsibilities of property ownership, offering even more flexibility, with the opportunity to deal with future succession issues.
The benefits of Sale and Leaseback
- Firstly, it facilitates equity release, removing the burden of ongoing capital investment
- Secondly, it can help in attracting new GP partners, as no initial capital investment will be required
- Thirdly, it enables partners who wish to retire to transfer the lease to a new partner
- Fourthly, your new landlord will often assist with financing premises improvements
- and finally, support the ongoing maintenance of the property allowing staff to concentrate on service delivery and patient care.
As independent, specialist primary care agents, GP Surveyors will draw upon over 18 years of experience to manage your complete sale and leaseback process while you concentrate on running your practice.
We will ensure your interests are protected as we will deliver the following:
- Firstly, your medical premises will be accurately valued.
- Draft heads of terms in preparation for the lease.
- Manage and secure approval with NHS England (or appropriate body).
- Market the property to specialist primary care investors.
- Negotiate with the investor to achieve the best price for your asset.
- Coordinate with relevant partners (accountants, solicitors and/or tax advisors).
- Provide full project management across the transaction until completion.
Finally, we understand that not one size fits all! To ensure sale and leaseback is a suitable option for you further investigations will be required.
“Sale and Leaseback has allowed Friarwood Surgery to thrive: the equity-owning partners profited financially from the sale, and recruitment issues have been reduced due to new partners not having to buy into the property.”
– Kevin Duggan, Practice Manager, Friarwood Surgery, Pontefract
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