GPC legal guidance on CHP’s proposals as summarised below:
- CHP are asking that certain GP practices enter into a tenancy or lease, despite them already having a right of occupation.
- The general premise that GP practices enter into a documented underlease to regularise their occupation so as to satisfy the head landlord whilst the parties negotiate the service charges is subject to the terms being offered. The concern is that the draft underlease is a ‘contracted out lease’, i.e. the tenant is agreeing to forego its statutory rights to renew the tenancy or claim compensation. Unless expressly contracted out, the tenant will likely benefit from those statutory rights under the terms of their current tenancy, so would be taking a significant risk in forfeiting these rights.
- The clear guidance to members must be to take independent legal advice before entering into any such tenancy or lease.