It is important to note that the agreed lease is a template only. All GP practices must seek their own legal and professional advice to ensure that the terms are right for them.
The template lease will be different if you are taking a lease for a whole building. The core principles still apply.
Why we created the template
| What were the issues? | What has happened since? |
|---|---|
Last man/woman standingThere was no ability for a practice to break their lease if they lost their core contract, and, as a consequence, their funding. |
Last man/woman standingThere is now a break clause allowing a practice to break their lease if they lose their core contract, whether through voluntarily serving notice to terminate, or otherwise. |
Rent reviews and rent reimbursementRevised rent did not track reimbursement. This had the potential for creating shortfalls between the rents payable and the sums reimbursed. Such a shortfall would be the practice’s personal responsibility. |
Rent reviews and rent reimbursementRevised rents match what a practice is entitled to in terms of reimbursement. |
Repairing obligationsThe repairing obligations were long-winded and could require practices to repair issues that pre-dated them. |
Repairing obligationsObligations now subject to a schedule of condition or snagging list, depending on whether the premises is old or new. This will identify items of disrepair that the practice will not be liable for. |
Service chargesThere was no mechanism to challenge service charges, nor that charges be reasonably incurred. |
Service chargesService charges must now be reasonably and properly incurred. Services and billing must be transparent. |
VATAs with all usual commercial leases, the lease allowed for NHSPS to 'elect' to charge VAT on the rent at any point. Additional VAT could not be recovered. |
VATAny election by NHSPS to charge VAT is subject to the practice being able to claim reimbursement. |
Relocation clauseNHSPS had an ability to relocate the practice on giving notice. |
Relocation clauseThis clause has been completely removed. |
Sharing of occupationNHSPS had the ability to allow people and NHS entities to 'share occupation' with the GPs. |
Sharing of occupationThis clause has been completely removed. |