The idea of GP property sale and leaseback programs is one that never fails to split this particular professional community right down the middle. Understandably, there will always be those for whom the idea of selling the property they have worked so hard to build into a successful business is somewhat unthinkable to say the least. For others, however, the clear advantages and benefits of relinquishing ownership responsibilities outweigh the positives of remaining the primary property owner.
It’s a debate with plenty of weight on both sides of the argument, but there has nonetheless be a dramatic spike in the number of GP property owners actively looking into sale and leaseback schemes over recent years. GP surveyors are being brought in to offer advice up and down the country, as the idea of selling the property to an investor and leasing it back over a fixed period gathers momentum like never before.
Which of course begs the obvious question – why?
Well, in many instances, it is simply a case of the property owner in question having decided to make advance plans for their intended retirement date. Not only this, but the idea of being able to release what could prove to be a quite sizeable chunk of equity has the potential to be appealing for an endless number of reasons. Whichever side of the fence you happen to be on, there are certainly several key advantages to sale and leaseback programs that cannot be denied.
The Benefits of Sale and Leaseback
It is often (and understandably) looked at as something of an extreme strategy, but the benefits of sale and leaseback programs are always worth considering. Just a few examples of the reasons why more GP property owners than ever before are considering these kinds of agreements include the following:
- Sale and leaseback enables the owner of the property to release what could be extraordinary amount of equity, which is otherwise tied-up in property. If a sizable sum of cash is needed for any purpose whatsoever, sale and leaseback can be an excellent way of accessing it without delay.
- While the GP entering into the sale and leaseback deal will be required to pay rent to the new owner of the property, this liability is covered by the rent reimbursed to the practice by NHS England. As a result, operational costs are kept to an absolute minimum.
- Many of the difficulties synonymous with attempting to attract partners into a GP practice can be overcome by entering into a sale and leaseback agreement. The reason being that while many prospective GP partners may be unwilling (or unable) to buy into the business as a partner when this involves the purchase of a share of the partnership premises. Entering into a GP business when the property is leased is much simpler, less onerous and as a result, often more attractive.
- Given the fact that the change in ownership represents nothing more than a contractual matter, the GP practice itself can continue operating without any disruption whatsoever. Quality of patient care is not affected and there will usually be no detectable changes whatsoever to the way in which the practice is run.
- Another highly significant selling point of the sale and leaseback program is the way in which it can immediately relinquishes the GP property owner of a great many responsibilities. While in ownership of a GP property, it comes down to the owner to take charge of maintenance, repairs and any essential work that might need to be done at a potentially extensive cost. Under a sale and leaseback scheme, all such responsibilities can be transferred to the new owner.
- Planning for retirement can also be made significantly easier by considering a sale and leaseback option. Too many GP property owners leave things right until the last moment before they consider how to realise their equity in the practice premises. When these matters are not dealt with at the optimum time, trying to resolve such issues subsequently can prove to be problematic. Sale and leaseback is one way of securing the full and fair market value for the surgery. By selling the freehold interest in the property and leasing it back until the day you retire and you walk away with no loose ends to tie whatsoever.
- There are also tax implications to take into account as well, as to enter into a sale and leaseback scheme is usually taxed much less severely than would be the case if the property had been sold outright to a conventional buyer.
As can clearly be seen, it is a prospect with a great many positives and plus points to consider. Those interested in sale and leaseback programs or simply looking for a little clarification should contact a reputable and experienced GP surveyor for independent advice and guidance.
Why is Investing in Healthcare is the Best Option for Medical Professionals?
Healthcare industry is considered as one of India’s largest sectors, both regarding employment and revenue generation. It is expected to...
The need and use of the Vial Box
There are a lot of healthcare professionals and caregivers that have to assist the living facilities and there are a...
How To Buy an Abstract Rug Online and Avoid the Mistakes Involved
We are currently living in the golden age of nesting. Especially as part of the millennial generation, we gravitate towards...
Begin Your Love Story With Disabled Dating
We want you to know – you aren’t DISABLED, you are just differently-abled because the only disability in life is...
Are You Selling at Least The Basics To A Beach Vacationer
In winter, a lot of people travel to major attractions such as warm beaches. These travelers often have to pack...
What You Need to Know Before Starting a Business
Congratulations, you did it. You decided to quit your day job and start a business. Being your own boss is...
.Net 3.1 Latest Features Released By Microsoft
.Net 3.1 Latest Features Released By Microsoft The latest version of .net core 3.1 has been released by Microsoft that...
BEST SPORTS FOR KIDS TO ENGAGE IN THIS YEAR
We are in a generation where our children are living an inactive lifestyle with very minimal or no sort of...
Buying a Strata Property – Is it a Good Investment for You
Buying a strata property is a scenario where you purchase a small portion of the complex and get access to...
What You Should Know About Google’s New VR/AR Features for the Web and Mobile Applications
Virtual reality (VR) and augmented reality (AR) are emerging technologies that provide users with a wide range of unique and...
Get the Kitchen of Your Dreams with the Best Remodeling Tips
Get the Kitchen of Your Dreams Among all the rooms of the house, the kitchen is the most versatile. It...
What does a Cyber Security Specialist do?
In our current reality, where a Security Guard ensures resources and a Bodyguard ensures individuals, a Cyber Security Specialist shields...
Why Would You Hire A Holiday Lights Service? Why Not?
The holidays bring us the tradition of baking, shopping, wrapping, parties, Christmas pageants and parades, tree decorating, and hanging lights....
Keep in Mind the Important Things Before Planning an Event
When thinking of the hire of a screen, don’t forget to look at how it is going to be presented....
Cheap Business Chauffeur Service
At the corporate level in the UK, business people are engaged in life whether they run a small or a...
- Tech5 years ago
Creating An e-Commerce Website
- Tech5 years ago
Design Template Guidelines For Mobile Apps
- Business4 years ago
The Key Types Of Brochure Printing Services
- Travel8 years ago
Who Else Wants Also Nfl Hat
- General5 years ago
Kobe Bryant With His Unique Nba Jerseys
- Tech5 years ago
Climb Google Using These Checklists
- Tech6 years ago
Why Small Businesses Can't Ignore Mobile Technology
- Health6 years ago
Health Supplements For Sports Activities Nutrition