GP Surgeries freehold and leasehold legal issues

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GP Surgeries freehold and leasehold legal issues

• Ian M. Fisher
• www.drsolicitors.com
• 01483 511 555

Winchester 30 March 2006
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From single-hander GPs to One Stop Shops
Ownership
Finance
New build
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Surgery Ownership

• Freehold vs leasehold vs licence
• Multiple Ownership
• Declaration of Trust for joint ownership
• Ownership shares
• Valuation (market value, cost rent, notional
  rent)
• Decision-making
• Ownership costs
• Surgery as a business, non-business and pension
  asset

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Surgery OwnershipLeasehold considerations

• Length of term break clauses
• Rent review link to DVs assessment
• Right to renew
• Repairs Alterations Premises sinking fund
• Dilapidations
• Authorised Guarantee Agreements

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New DevelopmentsInitial Activities

• Heads of Terms
• PCT funding
• DV, Solicitor, Surveyor, Accountant, Bank
• Investigation of Title
• Freehold/leasehold overseas landlord?
• Car Parking arrangements
• Access Boundaries
• Adverse interests, easements, restrictive
  covenants etc

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New DevelopmentsPlanning and Construction

• Planning permission building regulation
  approval
• DDA compliance
• Construction contract
• Construction warranties
• Collateral warranties from subcontractors etc
• Leases and licences to third party occupiers
  (dentists, podiatrists, PCT, homeopaths, physio
  etc)
• Alterations
• Insurance

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New Partners

• Independent legal advice
• Licencee, lessee or joint owner?
• Does lease allow underleases?
• Await expiry of probationary period before
  sharing ownership
• Obligation to purchase in Partnership Deed?
• Valuation market rent, cost rent, notional rent

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Outgoing Partners

• Binding obligation to sell OR option to retain
  ownership?
• Check notice of retirement in Partnership Deed
  and notice of variation in GMS/PMS contract
• Check Declaration of Trust
• Multiple retirements and raising finance
• Mortgage redemption endowment policies

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Finance and Costs

• SDLT on freehold purchases and on leases
• Land registry fees
• Professional fees - reimbursable under Premises
  Costs Directions
• VAT on rent