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GP scenario: A GP surgery is in the process of converting two rooms which were previously fully functioning admin rooms, into clinical consulting rooms.
Q: Does the nature of the room change the valuation in terms of Notional Rent?
A: Surgeries are generally valued on an all inclusive price, whereby the admin rooms attract the same price as the clinical rooms (assuming the rooms are on the same floor).
However, improvement works can impact upon this all inclusive price where the overall quality of the surgery is enhanced. This will depend upon the amount of works, quality of those works and proportion of the property that is improved.
Where you have two rooms out of thirteen or so, the enhancement in value is likely to be small. The district valuer (DV) may even report the same price.
We have assumed that the practice are funding the works themselves but where NHS funds contribute there would also be an additional offset to reflect the NHS contributions under the abatement regulations.
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