Answer
I note that you have a lease on a new property and that the PCT “organised and negotiated” the terms for you. I am thus surprised that they agreed to an FRI lease (i.e. one where you bear the monetary liability of external repairs and the building insurance) as the NHS guidance would indicate that they should have negotiated an IR lease whereby the tenants' only responsibility is internal repair, with the landlord paying for external and structural repair and decoration together with building insurance. For a new property where doctors do take a FRI lease, the normal adjustment to IR terms as reflected in the Current Market Rent for reimbursement purposes is 5%. I have never heard of 3% being used which is clearly inadequate to cover both your liability for repairs and building insurance. If, however, your liability is only for the external repair and you do not have to pay for or reimburse building insurance, then 3% to 4% may be correct with the 1% to 2% reflecting building insurance.
I note that the PCT then “rent back” part of the accommodation for a nominal sum. It is correct that if they do occupy part under some form of licence, then clearly they shouldn't pay rent as you receive reimbursement on the total sum paid. However, they should agree with you not a notional figure, but a proper service charge to cover heat, light, tea, coffee and indeed a fair apportionment of internal redecoration and repair for these areas. There is no simple rule of thumb I can give you to calculate this and you really need to look at an exercise totalling up all the heat, light, utility costs etc together with any proper sinking fund you are making for internal decorations and repair, and then apportion it on a floor area basis.
As noted above, the normal adjustment from FRI to IR terms on a new building is 5%. This compares to an older style building which would probably be more like 7½% as the maintenance costs will be higher. New buildings should have been constructed with a view of ensuring that maintenance liability is low and the 5% does not represent the sum for the immediate first few years but the average figure for the term of the lease and thus it would be up to the GPs to put the money aside in a suitable interest earning account so as to form a sinking fund. Finally, on the matter of appeal, you certainly can challenge your PCT although the exact route will depend on specific procedures that they put in place. If the PCT does not have any appeal procedures in place, then you would have the right to use the old “Red Book” system and appeal through to the Secretary of State (in essence, the Family Health Services Appeals Unit). |
