Tenancy Regularisation FAQs

Transcription

1 Tenancy Regularisation FAQs Q1: Why does CHP need to regulate the sub tenancy agreements? A: CHP as a Head Tenant has a number of legal obligations to its Superior Landlord (the legal owner of the building) which it needs to fulfil. One of these obligations is that all sub tenants should be on an appropriate sub tenancy agreement. Q2: What documentation will CHP be looking to put in place? A: CHP uses a standard form of underlease across the NHS LIFT estate. We will be writing to you to explain the process and seeking your assistance in validating our records on what area you currently occupy. Q3: Is it important that I have an underlease? A: Yes it is important. An underlease provides you with all the essential information you need to know for occupying the premises. You are also likely to be required to have a tenancy agreement in place to be compliant with your commissioning contract. Q4: If I already have an underlease, am I affected? A: We will be also be reviewing current under leases to ensure that if your occupancy has changed we can discuss and agree how we formally record these changes. Sometimes there are legal processes we need to adhere to and we will explain everything and help you through the relevant processes. Q5: What will happen if my underlease is due to expire in the next year? A: We closely monitor all tenancies and will be in touch six months before it is due to expire. However, if you have any questions please contact your local CHP Property & Asset Manager whose details can be found on our website: Q6: Who will be contacting me? A: Initially, you will receive a letter from one of our regional teams outlining the process and associated timelines we are following. You will then be liaising with our local Property & Asset Managers to conclude negotiations. Our Property & Asset Management team details can be found on our website: Q7: What are the timescales to complete the under leases? A: Where regularisation negotiations are currently in progress, we are committed to completing these as quickly as possible. Q8: How will this affect what I am currently paying CHP? A: As part of our process, we are committed to being open and transparent with you on how your occupancy costs are calculated. Costs will be calculated on the agreed recharge policy which currently being finalised by the Department of Health. Further information on this policy will be provided once it has been approved.

2 Q9: When will I know what I am being asked to pay? A: When we have confirmed the area you occupy, we will be in a position to provide you with a rental figure and an estimated service charge statement relating to your proposed underlease. Q10: Who do I contact if I do not agree with the costs I am being asked to pay? A: In the first instance, you will need to liaise with your designated CHP Property & Asset Manager who will be able to review and respond to your queries. We will respond to queries as quickly as possible, with our aim being that we come back to you within five working days. However, there may be occasions where we require information from third parties and this may take a bit longer. We will of course keep you updated of progress if this situation arises. Q11: When will the new charges come into effect? A: Your underlease will stipulate the commencement date for the charges. It is anticipated that this will be no later than 01st April 2015, or whenever the lease is agreed whichever is sooner. Q12: Are you liaising with Commissioners so they understand what I am being asked to pay? A: We are committed to working very closely with Commissioners to ensure that there is an effective dialogue and understanding of premises costs relating to their commissioning contracts. We will be maintaining effective lines of communication to ensure that the process progresses smoothly. Q13: If I have been paying more than I should have been paying, will I get a refund? A: Where this situation arises it will need to be considered on a case by case basis. The general expectation is the new charges are applicable from the date the under lease is agreed without retrospective adjustments given the overall funding settlement. Q14: Are CHP going to charge me a management fee? A: CHP will charge a minimal amount to recover the cost of managing contracts and for functions such and billing and financial management. Tenants will be provided with a full explanation of these costs and an annual statement that confirms the actual cost. Q15: Why does rent in a LIFT building appear to cost more than other healthcare premises? A: The Lease Plus Payment or rent pays for a new and modern, purpose built accommodation and the on-going maintenance of that building for the length of the Lease Plus Agreement (usually 25 years). Specifically, this includes payment of all services provided to the building tenants including: facilities management, planned preventative maintenance and lifecycle (replacement) costs. In addition to this, other soft FM costs, business rates, utilities charges, building insurances are all additional costs that are passed on to the Tenants.

3 Q16: Will I need to instruct a solicitor to act on my behalf? A: Yes you will need to instruct a solicitor to act on your behalf in this matter. CHP has however secured the services of very experienced solicitors who are familiar with LIFT tenancy related matters and could act on your behalf at very competitive costs which are below current market rates. We will provide you with these details when we contact you. Q17: Who will be paying my legal costs? A: The responsibility of the legal fees rests with the sub tenant. CHP will be paying its own fees in respect of regulating the under leases and will not be passing these costs onto the sub tenants. Q18: If I occupy premises managed by NHS Property Services, will you also be regulating these tenancies? A: No. However, we will be happy to put you in touch with our regional colleagues at NHS Property Services so they can assist you. Q19: How does CHP calculate occupancy in its LIFT buildings for the purposes of charging rent (ULPA) to sub tenants? A: The starting point is the creation of a schedule of accommodation for the whole building. this details each area of the building by room number / room designation / room size. The use of each room is then designated by reference to its usage / allocation, with some rooms being designated as common areas and some as plant / equipment. The remaining rooms are then allocated to individual tenants with the total area being used to calculate the share by percentage to the individual tenants by reference to their allocated areas. The example below shows how this is calculated: Example Health Centre Total floor area as per schedule of accommodation 1800 m 2 Less common and plant areas 240 m 2 Total allocated occupant areas = 1560 m 2 Tenant A: Dr Aaa, Occupied area 247 m 2 Tenant B: Dr Baa, Occupied area 187 m 2 Tenant C: Community Services, Occupied area 1126m 2 Total allocated occupant areas = 1560 m 2 % allocation of building costs Tenant A: Dr Aaa, 247m 2 / 1560 m % Tenant B: Dr Baa 187m 2 / 1560 m % Tenant C: Community Services 1126m 2 / 1560 m % 100%

4 Q20: CHP have negotiated a fixed price with Capsticks and Bevan Britten on behalf of tenants. Are tenants obliged to use one of these two firms and will there be a conflict of interest because CHP may also be using their services? A: Tenants are not be obliged to use one of the firms, but may wish to take advantage of the preferential rates. There will be no conflicts of interest because the preferential rate will not be available with the firm that CHP is using in each region. Q21: What is the minimum length of term of a lease in a ULPA? A: ULPAs are usually expected to be for a term that expires immediately before CHP s LPA although, there is a clause that enables the ULPA to fall away in the event that a service contract/agreement ends or is terminated. Q22: Will a service charge schedule be agreed at the same time as the lease itself? A: No. CHP will provide a Service Level Agreement (SLA) separately to agree the level of service and associated costs. The service charge will be dealt with in a separate SLA, which we would expect to be concluded at the same time as the ULPA, except in exceptional circumstance. Q23: Is VAT charged on rent and service charges? A: CHP is a VAT registered company. Under HMRC guidelines as a VAT registered company we must charge VAT on our goods and services. VAT charges will be included on your invoices moving forward. GPs are able to recover this cost via the reimbursement scheme, as described in the National Health Service (General Medical Services Premise Costs) (England) Direction Q24: Will any disrepair be rectified before the lease is signed? A: All repairs that have been reported to the relevant building helpdesk will be scheduled for action. Q25: What if the area we occupy in the building does not match the area on the plan sent from CHP? A: Please respond to the Tenancy at Will letter from CHP and identify discrepancies. Q26: If there is an empty space within the building will we have to pay for it? A: The costs associated with common areas are divided amongst tenants. Empty space is not charged to tenants. Q27: What is CHPs escalation process when tenants raise complex issues with the leases? Our primary focus is on providing an excellent level of customer service to all of our tenants and stakeholders and as such we commit to responding to questions and issues in a timely fashion. Issues which require escalation will be processed as follows:- > Level 1: Escalation to the Head of Property & Asset Management: review of issues and agreement of approach. > Level 2: Escalation to Executive Director of Property & Asset Management: summary of issues with recommendation for approach.

5 > Level 3: Escalation to EMT: summary of issues with recommendation for approach. These are likely to be significant issues which prevent CHP from derogating obligations under the LPA/ LRA. > Level 4: Escalation to Third Parties (CCG, NHSE, Department of Health etc): summary of issues and the consequences/ effect on CHP. Estimated timelines for escalation review are: Level 1: 5 working days. Level 2: 5 working days. Level 3: 10 working days. Level 4: Seek a response within 10 working days. However, it is recognised that due to the complexities of each individual case and its merits, it may take longer to agree an acceptable resolution. Q28: If I have any queries, who should I contact? A: Please contact your designated CHP Property & Asset Manager whose details can be found on our website: You can also contact our Property & Asset management on at: property@communityhealthpartnerships.co.uk Alternatively, please contact us through our property enquiry form on our website: