The FHP Healthcare Team utilise their specific knowledge of this sector of the market to ensure GPs receive a fair Notional Rent reimbursement. When you receive notification from the PCT with their "offer" for a revised Notional Rent, ask FHP for a second opinion. If appropriate we can help you to challenge the award and if successful maximise the rental return of your property.
The mechanism for valuation contained within many Partnership Agreements often means Notional Rent has direct relationship capital value of the property and surgeries and reimbursed by the PCTs - indeed it is this funding arrangement that dictates rental levels on sale and leaseback arrangements. Therefore it is very important to ensure your Notional Rent is correct to maximise the value of your asset.
The Notional Rent is valued by the District Valuer on behalf of the PCT and is based upon their opinion of the Current Market Rental (CMR) value of the property. FHP Healthcare provide advice upon the accuracy of the DV's opinion of value for the CMR by considering rental evidence and the levels of funding being paid to GPs in respect of comparable surgeries.
If we consider there are sufficient grounds to challenge the award we will do so on your behalf with our fees purely performance related, with a fee only being paid if we are successful in improving the initial offer made by the PCT. Our fees are based upon 50% plus VAT of the first years uplift between the figure first offered by the PCT and that finally agreed.
In some cases, where clients have received what they thought was a generous increase, we found that the initial basis of valuation had been incorrect and the offer therefore did not extend to the correct level of funding at the outset. This is why we believe you should always get a second opinion on your Notional Rent. If we don't believe a challenge to be appropriate, we will tell you so and won't charge for our services.
Some clients have concerns that "challenging" the Notional Rent will damage their relationship with the PCT, but we ensure that this will not be the case. We pride ourselves on acting professionally and sensitively to ensure you receive the reimbursement that you are due under the terms of your contract.
If you are developing a new medical centre or surgery, we can also advise you on the Notional Rent you will be likely to receive, to help you budget accurately.
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