Is your GP surgery property in order?

Is the legal title to the property in the full legal names of current partners?

GP Partnerships cannot register their legal title to a property at the Land Registry in the name of the Partnership. They must therefore name between 2 - 4 individual partners who hold the legal title to the Property on trust for the Partnership.

It is important that this is kept up to date with any partnership changes as keeping retired partners on your property documents can present difficulties in dealing with the property in the future (e.g. if you were to grant a lease or sell the property and were no longer in contact with a former partner).

Is your Partnership Agreement up to date?

Your Partnership Agreement should be kept up to date with details of your properties and any agreements reached between the partners on how the properties will be held and managed.

Have you informed your Bank of any departures or new joiners in the Partnership?

Most GP Surgery premises will be subject to a legal mortgage. The Bank will need to be kept informed of any changes in the Partnership to ensure their loan and mortgage documentation is up to date and in the names of current partners.

Is your buildings insurance correct?

Your buildings insurance should:

1. Name the current partners named on the legal title as the insured persons and not the Partnership
2. Include appropriate reinstatement cover (i.e. your insurance policy should cover the full reinstatement value of your premises, not the market value)
3. Have the names of the other partners endorsed on the policy
4. Include cover for a minimum of three years loss of rent insurance to cover any leases in place at the property to third parties.

Do you have a 'Display Energy Performance' (DEC) certificate and is it on display in the surgery premises and is the rating at least level 'E'?

A DEC is required for any building that is larger than 250 square meters and is occupied by a public authority, this includes GP surgeries.

The DEC must be displayed openly for the public to see at the property.

Do you have an asbestos report to show that you have identified and are managing any asbestos risks at the Property?

Many GP Surgeries were developed at a time when asbestos was still commonly used. Unless the premises is fairly modern, there should be an asbestos report in place and the Partnership should be managing the risks identified in accordance with the report's findings and recommendations.

Do you have the required risk assessments in place?

A GP Surgery should have the following risk assessments in place which are kept under regular review and should manage any risks identified accordingly:

1. A fire risk assessment
2. A legionella's assessment
3. An equality act risk assessment.

If you are a tenant of your premises, have your rent reviews been carried out and properly documented?

Many GPs lease their surgery premises. GP Surgery leases usually provide for rent reviews to be undertaken every 3 years. It is important to ensure that rent reviews are undertaken in a timely fashion and are properly documented to avoid outstanding reviews (and subsequent outstanding rent payments) accumulating.

Are any third parties who regularly use space in the property properly documented (a licence or lease arrangement)?

It is common for GPs to share use of their premises with other healthcare providers without any formal documentation being in place. It is important that such agreements are documented to ensure that any third parties who use your premises do not gain any unintended rights over the premises.

Are the rent reviews up to date in any Leases to third party occupiers?

It is common for GPs to grant leases to third parties, such as dentists or pharmacies. It is important to ensure that these leases are properly managed and, in particular, that the rent reviews due under these leases are undertaken as they fall due and are properly documented. 

Are you recovering all the financial contributions you are entitled to from occupational tenants? For example, insurance/service charges/rates?

Many GPs Surgeries are shared with third parties, such as other healthcare providers, pharmacies and dentists, who may have an obligation under their leases to contribute towards the cost of items such as insurance, utilities, rates and services. You should ensure that you are collecting the contributions which you are entitled to. 

Have any occupational leases or licence arrangements expired? Or are any about to expire?

If you lease a GP Surgery, or have granted a lease or licence to a third party (e.g. a pharmacy), it is important to keep an eye on the expiry date of that lease or licence to ensure that it is renewed before it's expiry.

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If you would like more information please contact Kirsten Brown in the Healthcare Commercial Property team.