About Notional Rent
Notional Rent more correctly known as the Current Market Rent is the rent that Practices benefit from reimbursement through and is provided for under the National Health Service's (General Medical Services – Premises Costs) (England) Directions 2004 or regional equivalent. Current Market Rent calculations differ between owner-occupied premises for Practices who own their premises and for those that lease their premises. For Practices which own their premises the Current Market Rent is reviewed on a three-yearly pattern and represents the rental level which would be payable for the premises based on a hypothetical lease. For Practice's which hold their premises under a lease the Current Market Rent will be reviewed in accordance with the rent review periods as contained within their lease and will have regard both to the occupational lease terms as well as the hypothetical lease terms adopted under the Directions. Notional Rent may be subject to abatement where NHS funds have contributed to the cost of building or refurbishing work undertaken at the premises. The Current Market Rent is generally reviewed by the District Valuer acting on behalf of the Primary Care Trust, who will respond to the submission of a PREM1 form by the Practice. Details of the revised Current Market Rent are then provided to the Practice and an opportunity then exists for the District Valuer's assessment to be reviewed initially through an informal negotiation process. However, should agreement with the District Valuer not be reached by such an approach a further opportunity exists for a Practice to consider a formal Appeal to the FHSA or equivalent. With our experience we are ideally positioned to provide valuation advice to Practices to establish whether the Current Market Rent assessments are fair, and if not we can act for the Practices during the negotiation periods with the District Valuer and possibly through to a full Appeal whereby we will be seeking to maximise the Rent Reimbursement and the return that a Practice can benefit from. Our fees in respect of such a service are performance related. Please review of Notional Rent Negotiation page or Contact Us for further assistance. |
