Do you have partners approaching retirement? Would you like to release equity from your practice? Then Sale and Leaseback could be just the solution for you.
Sale and Leaseback involves the freehold of the GP premises being sold to an investor and a lease being granted back to the practice partners. The partners continue to occupy the building and provide contracted medical services. The practice will pay a lease rent to the investor and recieve a Current Market Rent reimbursement from the NHS.
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, provides partners with flexibility and the possibility of resolving future succession issues easier.
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 22 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.
- Financially qualify bids and undertake anti-money laundering checks on all successful bidders.
- 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.
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