Moving from Cost Rent to Notional Rent
Purton Surgery 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 Carolyne Fairey. Carolyne 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. Carolyne 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 Carolyne 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 and Carolyne, who was 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 the surgery’s capital value.