New rules for GP Premises Improvement Grants – what you need to know
Further to the release of NHS Premises Costs Directions 2024 in May, NHS England has issued a new policy relating to primary care improvement grants (NHS England Primary care capital grants policy). This will affect any GP Practice that is seeking NHS funding for premises improvements, whether its premises are freehold or leased. It is stated to apply to “all primary care premises capital grants regardless of the source of capital” so potentially, not only to capital available within the NHS, but also to s106 and CIL monies paid to Councils and arising from local housing developments.
The policy sets out the project documentation that will be required to progress a bid for an improvement grant and, importantly, the legal documentation that GPs will need to enter before funds are released. These documents include:
- Freehold project grant agreement (without an associated legal charge) for use in respect of lower value grants for GP-owned premises, where NHS England is satisfied with the practice’s financial covenant strength – this form of grant still requires that a restriction is registered against the property’s land registry title;
- Freehold grant agreement (for use with a legal charge) and the associated legal charge for use in respect of higher value grants for GP-owned premises; and
- Leasehold grant agreement for use where the premises are leased by the practice.
The requirement for a legal charge over freehold premises is stated to apply to grants of more than £144,000. A legal charge would secure the grant against the premises in a similar way as a mortgage and will require GPs, and their advisors, to work with any existing mortgage lenders to obtain consent to the NHS England legal charge and any restriction on the Land Registry title. On a change of partners there will be additional legal steps needed to release outgoing partners from the grant and any legal charge and to add new partners in their place.
The policy sensibly states that the draft documents must be shared with the contractor (i.e. the GPs) early in the process and recommends the early appointment of legal advisors. Timely legal advice will be crucial to navigating the process, avoiding delays and understanding the commitments that attach to improvement grants which will potentially bind the practice for a number of years. Impact on succession planning needs to be considered as new partners will want to understand the commitments that relate to existing grants and the surgery premises.
You may also find this article useful What do the NHS Premises Costs Directions 2024 mean for practices?
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Please do get in touch if your practice needs help with an improvement grant or any other premises issues. Our expert GP Premises team at Hempsons would be pleased to help.