Ask The Experts - Premises Reimbursement

Published:02/10/2009

Question

The district valuer (DV) has just carried out a triennial review for notional rent purposes on my surgery and it transpires that I have not been receiving rent for 100% of the accommodation. The DV states that “staff only” areas are excluded including the common room, kitchenette and staff toilet. The entrance porch and areas of corridor beyond the last door are also excluded. This reduces the accommodation to which notional rent potentially applies. Is the DV correct?

Answer

You will only get reimbursed for that part of your premises that the PCT accept is being used for GMS (or PMS) purposes. If the PCT deem that the property is too large, or includes such elements as residential accommodation that are not needed for GMS purposes, then they will be excluded from the area that can be reimbursed.

From what you say, I don't think that this is the problem, and I think you are getting reimbursed for 100% of your premises. However, it is the way that the District Valuer (and indeed any other valuer) assesses rent in that he will not look at the Gross Internal Area but the Net Internal Area of the property. His guide will be the Code of Measuring Practice issued by the Royal Institution of Chartered Surveyors, together with Valuation Information Paper 4 (again by the RICS). Together, these documents assist the valuer in how to calculate the Net Internal Area. Whilst I can't go into this in great detail, the valuer will take the Gross Internal Area and deduct all structural walls, WCs (excluding those provided over and above the minimum required for staff and solely for patient benefit), plant rooms, lifts, stairs and stairwells, together with areas of essential access or areas used in common. This will give the valuer the Net Internal Area upon which he will apply the appropriate rate.

If you are concerned about the way that the assessment has been made, you should contact a specialist valuation surveyor to look at the District Valuer's assessment of Notional Rent so that you can be advised as to whether it is fair and reasonable. If it is felt that it has been incorrectly calculated, then PCTs should have in place a form of local dispute resolution and will normally instruct the District Valuer to liaise with your appointed valuation surveyor with a view of reaching an agreement as to a fair rent.