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Ask The Experts - Surgery Lease

  Published:14/12/2007

Question

I am selling my surgery to my GP partner but I do not have a lease agreement with him. Would there be any benefit to me to have a lease drawn up and signed?

Answer

Your question really revolves around whether the surgery's value will be higher if a lease is in place. With a lease that is fair and reasonable to both parties, there is unlikely to be a financial benefit to the owner. By fair I mean that the property owner receives all the rent reimbursement and is responsible for external repairs and building insurance.

The only case in which would a lease would arguably create a higher value is if the landlord does not have these liabilities for the property yet receives a high or excessive rent.

In some cases, a lease could lower the building's value- for example, if the premises has a possible alternative value that is worth more in the market than the use the lease covers. Realistically, I doubt a lease would be of benefit to you.