NHSPS template lease update
Achievements so far, and what’s to come.
Since the release of the new NHSPS template lease in 2016, the BMA – alongside BMA Law – have been working to address the key residual issues that have prevented many GP tenants from signing up to the lease. As you will no doubt be aware, these issues primarily concerned the lack of clarity over, and indeed the level of, service charges.
There are certain residual points that still need to be finalised (see below), but negotiations with NHSPS have proven extremely positive. As such, we are pleased to announce that a revised set of Heads of Terms have, on behalf of the practices that we were negotiating (as we couldn’t commit others who have sought advice elsewhere), been agreed in principle.
Whilst there will be certain variations depending on the type of lease you take, the headline points that have been agreed in respect of a lease of part (i.e. where a practice leases part of a wider building) are:
Rent & Rent Review
Both the starting rent and those applying following a rent review will, whilst you hold a core contract and are in receipt of NHS funding, now mirror the District Valuer’s assessment of the current market rental value for reimbursement purposes. This means that rents will track the level of rent reimbursement.
Break clause
In addition to having the right to break the lease in situations where you cease to hold a core contract, you now have the right to break on 12 months’ notice where a practice relocation is approved by your commissioner.
Security of tenure
Although the lease will be excluded from the Landlord and Tenant Act 1954 (which basically means that you’d have no statutory right to call for a new lease at the end of the lease term), there is contractual right for you to call for a new lease at the end of the original lease period for a term equivalent to that which you take at the outset.
Services charges
A mechanism has been agreed whereby your exposure to non-reimbursable costs will be capped. Whilst work will still be needed to quantify the level of this cap (which, given the need to take account of practice/ building specific circumstances, is likely to require a more localised approach) the principle, which will be supported by both a contractual commitment by NHSPS towards transparency with their charges and an independent disputes resolution process, represents an important step that will establish certainty over your ultimate charges.
Facilities management
Whether you use NHSPS’s facilities management providers to provide FM services to your internal demise (i.e. the space exclusively let to you) will be at your absolute discretion.
Repairs
NHSPS will be responsible for, and bear the cost of, external and structural repairs and maintenance. You will be responsible for internal repairs (i.e. those to the areas exclusively demised to you under the lease). Despite this, you will have the ability to prepare a schedule of condition in order to record any items of disrepair. Any such items will be excluded from your repairing obligation.
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If you have any questions or wish to have BMA Law represent you in your negotiations with NHSPS please do get in touch. We offer a fixed price service – contact us for more information.