Template GP premises lease

The template lease has been developed to cover a situation where a GP practice is taking lease of a specific part of a larger building, such as a floor or unit. Read our view on issues with the lease.

Location: England
Audience: GPs Practice managers
Updated: Tuesday 8 September 2020
GP practice article illustration

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 standing

There 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 standing

There 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 reimbursement

Revised 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 reimbursement

Revised rents match what a practice is entitled to in terms of reimbursement.

Repairing obligations

The repairing obligations were long-winded and could require practices to repair issues that pre-dated them.

Repairing obligations

Obligations 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 charges

There was no mechanism to challenge service charges, nor that charges be reasonably incurred.

Service charges

Service charges must now be reasonably and properly incurred. Services and billing must be transparent.

VAT

As 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.

VAT

Any election by NHSPS to charge VAT is subject to the practice being able to claim reimbursement.

Relocation clause

NHSPS had an ability to relocate the practice on giving notice.

Relocation clause

This clause has been completely removed.

Sharing of occupation

NHSPS had the ability to allow people and NHS entities to 'share occupation' with the GPs.

Sharing of occupation

This clause has been completely removed.