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Partners faced with £800,000 potential liability following practice closure


Unfortunately, GPs are in difficult situation. I have always advised my colleagues not to get into long term lease for premises unless they believe that they will be working for the whole period of the lease. This includes sale and lease back. The best option for entrepreneurs has always been to own the property at the regional market value. Investment is well paid off by notional rent. And if you want to retire or leave the contract then there is no headache of long lease liability. You can sell the property and keep your investment. A colleague once suggested that he would be smarter by transferring all his assets including property to his wife and children and declare bankruptcy to get out such situations. Unfortunately he forgot that his NHS pension and state pension cannot be transferred to families and the landlord would still take this person to court to pay for remaining years of the lease.

Posted date

04 Aug 2016

Posted time