Preston Park Surgery
- Brighton, East Sussex
Preston Park Surgery is a long-established GP practice operating from a distinctive pair of converted Edwardian semi-detached houses. Set over four storeys, with the middle floors dedicated to healthcare use, the building has been central to primary care provision in the area for many years. Recent changes in GP partnership and property ownership, however, created the need for specialist advice to secure the long-term future of both the practice and the premises.
Navigating Ownership and Valuation Challenges
Project Overview
Preston Park Surgery occupies a characterful Edwardian property arranged over four storeys, with the middle two floors in primary healthcare use and the remaining space providing ancillary accommodation.
Over time, the practice evolved, and with it, the GP partnership structure. As partners retired and new clinicians joined, the balance between property-owning and non-owning partners shifted. This raised important questions about how the building should be valued, how rent should be set, and how ownership should be structured to support long-term stability.
To address these issues, the partners sought specialist healthcare property advice to clarify their options, understand the market value and rent, and put in place a structure that would support succession and minimise risk to the practice.
Key Services
- Location: Brighton, East Sussex
- Property Type: Converted Edwardian semi-detached houses (4 storeys)
- Services Provided by PCS: Valuation, rent review, and ownership advice resulting in a sale & leaseback transaction
Key Challenges
Partnership Ownership Changes
As GP partners retired, the property ownership structure became increasingly complex. Some partners held an interest in the premises, while others did not. This imbalance created uncertainty around:
- How outgoing partners would realise their property interests
- How new partners could join without being disadvantaged
- How ownership would be managed in the future without destabilising the practice
Primary Care Surveyors were initially instructed to:
- Undertake a valuation for partnership purposes, establishing a robust basis for discussions around equity and ownership
- Carry out a notional rent review, determining a fair market rent for the premises in line with NHS and primary care valuation principles
- How ownership would be managed in the future without destabilising the practice
Future-Proofing the Practice
The core challenge was how to maintain a stable GP partnership while ensuring the premises remained fit for purpose and appropriately financed. This meant:
- Balancing the interests of property-owning and non-owning partners
- Managing the impact of retirements on ownership and equity
- Ensuring that premises costs and structures would remain sustainable for the next generation of partners
Our Role – Primary Care Surveyors
Primary Care Surveyors advised the partners throughout the process, bringing specialist expertise in healthcare property valuation, rent negotiations, and ownership structures. Our role included:
Providing valuation advice for partnership purposes, establishing a clear understanding of the property’s value
Undertaking a notional rent review to agree an appropriate market rent for the surgery
Advising on ownership and succession options, including the implications for both owning and non-owning partners
Guiding the partnership towards a ‘sale & leaseback’ solution, enabling the property to be sold to an investor while the practice continued to occupy the premises under a lease
By delivering clear, independent advice, PCS enabled the partners to make confident decisions about both immediate rent matters and longer-term ownership strategy.
Outcome
Through careful guidance and structured advice, PCS helped Preston Park Surgery navigate a complex ownership and property challenge. The result is a clearer pathway for the practice to maintain its premises while managing the transition of property interests between retiring and incoming partners.
Conclusion
The Preston Park Surgery case demonstrates the importance of tailored property advice in primary care. With a unique building and a changing partnership dynamic, the surgery faced both valuation and succession challenges that required specialist support. Primary Care Surveyors’ involvement ensured that the practice could address immediate rental obligations while planning for long-term ownership security, safeguarding the continuity of healthcare provision for the local community.
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