Graham Brown, the Practice Manager at Tilehurst Medical Centre explains that whilst GPs and Practice Managers become experts in many fields, premises valuation is probably beyond the remit of most and that sometimes it is to their advantage to call on expert advice and support. Read Tilehurst Medical Centre s case study to find out how we boosted their Notional Rent.
Tilehurst Medical Centre is a located in a converted property in Reading, Berkshire. Graham Brown is the Practice Manager there. He explains; “We first heard about GP Surveyors as they had maintained regular informal telephone contact with the practice, but without any pressure, in the 2 years leading up to the next triennial review. Due to this passive relationship which had been established we decided to test their services when our review came around.”
“In retrospect there really is nothing to lose; it is a true ‘no win, no fee’ service”
Ben Oldfield was the assigned Surveyor to the case. He explains; “Having been kindly instructed to check the Notional Rent (NR) proposed by the District Valuer (DV), I visited the surgery to inspect and measure the property. The next step was to gather comparable evidence and value the surgery in rental terms. It then become apparent to me that the NR proposed was a little low and certainly worth challenging.”
“Prior to instructing the DV, the PCT requested my valuation and supporting evidence, which I duly provided. Once the DV was instructed, he sent me his valuation and it became clear that he had the incorrect reimbursable area (sq m) as well as the £ / sq m being too low. I provided my sketch plans and we quickly agreed on a larger reimbursable area and after some negotiation we agreed a revised NR of £20,350pa from the starting figure of £17,750pa.”
“All other local practices can potentially gain from the new valuation baseline agreed by GP Surveyors with the District Valuation office”
Graham continues; “GP Surveyors were successful in securing a very welcome 15 per cent uplift and in retrospect there really is nothing to lose; it is a true “no win, no fee” service. The increase means we will now benefit from the year 2 and 3 incremental financial gain into the practice cash flow. In addition to which, all other local practices can potentially gain from the new valuation baseline created by GP Surveyors with the District Valuation office.”
“Whilst GPs and Practice Managers become experts in many fields, premises valuation is probably beyond the remit of most of us. We should acknowledge that sometimes it is to our advantage to call on expert advice and support.”
“All practices will appreciate that opportunities to secure a significant increase to practice income under the current financial climate cannot be overlooked”
“All practices will appreciate that opportunities to secure a significant increase to practice income under the current financial climate cannot be overlooked. GP Surveyors have allowed us to offset some of the variable cost increases which we are all facing.”
Graham concludes; “By instructing GP Surveyors to work for the practice it has dramatically improved our loan repayment/Notional Rent ratio with ensuing positive impact on cash flow. I have no hesitation in recommending GP Surveyors; they provided a discreet and professional service, requiring minimal input from the practice. Their administration is thorough and efficient, providing regular updates throughout, even when the process was delayed due to a change in District Valuer which meant that their previous negotiations had to restart with a new surveyor. They cannot be successful for every practice on every occasion but their “no win, no fee” policy means that it is worth taking a chance, and that’s from a usual sceptic!”
We hope you found our Tilehurst Medical Centre case study to be a useful read. To book a review of your Notional Rent please contact us today and we will be happy to help.