Advantages Over Sale & Leaseback

GPER can help to overcome the issues faced by many GP partnerships around succession planning and recruitment. Growing numbers of GPs are retiring at an earlier age than historically, and many incoming GPs are less inclined or able to buy the property equity stake of the departing GP.

Indeed, many new GPs want a salaried role or part-time working and simply do not want to own their workplace premises. Having GPER buy the departing GPs equity stake avoids the need for the incoming GP to do so, thus assisting the recruitment process.

GPER is aware that for many GP practices a sale and leaseback is not attractive for several reasons:

  1. Not all GPs want to sell at the same time
  2. The third-party investor is likely to insist upon a long, often 20 years or more, lease being entered into by the partnership
  3. A sale before retirement doesn’t give the selling GP entrepreneurial CGT relief and may not be tax efficient
  4. CCGs and NHSE can be reluctant to approve a long lease