key points of property transactions for GPs

We recognise that certain points are of particular importance in property transactions involving GP practices.

Click on the links below for information on the following points:

Construction of the Building and Design Defects

GPs' Ability to Exit the Lease

Rent Review

GPs' Partnership Agreement

Title Audit

Client Care

construction of medical premises

repairing obligations in leases

GPs as tenants will be responsible under the lease for rectifying any design defects.  This is one of the most significant issues.  We make every effort to restrict the liability of GPs to rectify any potentially expensive design defects.

Our firm can provide a solution to GPs in two ways.

First, we negotiate hard with the developers on the terms of the GPs' repairing obligation under the lease.

Second, we can, if required, insist upon satisfactory construction guarantees from the building contractor and other professional consultants involved in the construction of the new medical centre.

In a number of recent transactions we have succeeded in significantly restricting GP repairing obligations.

GPs' ability to exit the lease

GPs, particularly those considering retirement, may want specific safeguards built into the lease, so that the individual GPs can exit the lease. This may take the form of revisions to the lease document or the developers agreeing to give back letters to GPs, or both.

Although the GMS Contract offers significant incentives to GPs who wish to lease their premises under GMS or PMS arrangements, we recommend that GPs wishing to retire or resign should continue to ask for exit clauses to be included in the lease or back letters.

GP premises: rent review

We liaise with the NHS Board to ensure that the rent review clause in each lease is consistent with the detailed NHS Premises Costs Directions requirements.

GP premises: partnership agreement

As part of any lease transaction we offer to review the practice partnership agreement, so that adequate account is taken of the terms of the new lease. As an additional service we can offer to review the whole agreement, in order to ensure the practice is well regulated.

GP premises: title audit

We carry out a thorough check of the title documents relating to the proposed medical centre site. Sometimes we find that what may be acceptable to a developer may not be acceptable to the Board or a GP practice. Specifically, we check to ensure that the developer is able to grant a valid lease to GPs, that the full range of ancillary rights are in place (e.g. rights for access and services) and that there are no adverse conditions or restrictions contained in the title documents (e.g. conditions restricting the use of the site).

GP premises: client care

We balance the requirement to keep GPs informed against the need to minimise disruption to GPs' time. At the outset we usually provide GPs with detailed information in the form of comprehensive reports on the main terms of the lease, title and construction documentation. We follow up these reports with an initial meeting, in order to discuss any significant issues and to take detailed instructions. From then on we should be able to keep the Board and GPs informed by phone calls and in writing, as we progress to the detailed negotiations. Assuming the other partners agree, we can take instructions from one designated partner in the practice.