Branksomewood
- Fleet, United Kingdom
Branksomewood Medical Centre is a purpose-built surgery dating back to the 1980s, later refurbished and extended in 2003. The premises are occupied by two tenants: the GP practice, which occupied the main surgery accommodation and a pharmacy tenant, which held a sublease. With the practice holding a headlease, the practice receives Reimbursed Rent for their GMS accommodation and rent from the subtenant in respect of the pharmacy accommodation. This distinction became central to the negotiations to prevent possible misalignment between these two rents to ensure that the headlease rent was covered.
A rent review was instigated by the landlord with effect from March 2021. This required us to in turn to negotiate the reimbursed rent for the GMS accommodation with the District Valuer and the pharmacy rent to ensure that all 3 rents were aligned.
The head lease and sublease expired in March 2023. The renewal of both leases was undertaken in parallel to ensure that the partners of GP practice was not compromised.
PCS were instructed to step in and bring clarity to the process.
Our role was to review the lease rent, negotiate with the landlord’s surveyor, liaise with the ICB and District Valuer. This was to ensure that lease rent and both the Reimbursed Rent pharmacy rent remained aligned to avoid funding discrepancies.
The head lease has statutory protection meaning that the new lease was essentially to follow the same terms as the original lease, save for where the parties agreed to make changes.
The landlord’s surveyor initially proposed a significant uplift in rent. The ICB did not accept this figure, which meant PCS needed to negotiate a revised lease rent with the landlord while also negotiating an appropriate level of Reimbursed Rent with the District Valuer.
Matters became more involved due to changing positions within the ICB as to the lease terms that would be approved and what the landlord would accept, having regard to the lease having statutory protection. Whilst the parties agreed to insert a break clause into the new lease, this then led to prolonged negotiations as to the impact of this on rental value.
As these layers of complexity grew, the GP partners became understandably frustrated and considered escalating the matter through their local MP. PCS continued to focus on seeking agreement by all concerned whilst ensuring the interaction between the headlease and pharmacy sublease was properly reflected in the renewal process.
Through detailed work and persistent negotiation, PCS agreed a fair rental figure with the landlord, clarified the approach to Reimbursed Rent with the ICB and District Valuer and pharmacy. The rent review and lease renewals were concluded on equitable terms.
Key Outcomes
Fair and supportable rental figure achieved
PCS secured a rent that accurately reflected market value and lease structure, without exposing the GP partners a disparity in rent.
Dual-tenant lease issues resolved in parallel
The GP practice and pharmacy leases were renewed together, ensuring consistency across both demises and safeguarding reimbursement.
Valuation methodology and break clauses clarified
Disputes around comparables, valuation assumptions and the interpretation of break options were resolved through evidence-based negotiation.
Alignment maintained between lease rent and NHS Reimbursed Rent
Renewed lease terms and agreed rent were fully supportable under GMS reimbursement rules, protecting the practice’s financial position.
Statutory protection properly applied and upheld
Despite the headlease having statutory protection, PCS were able to negotiate some changes to the lease that met the operational needs of the practice.
Avoided escalation beyond the negotiation process
By bringing clarity and progress to the matter, PCS kept the MP updated as to progress.
Improved certainty for the practice and expansion
With the new lease in place, this allows the practice to progress their application for an Improvement Grant from the ICB .
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