GP premises value
Q: We are husband and wife GP partners and we are hoping to sell our branch surgery to another practice. The surgery has just been valued as medical premises at £201,000 (the open market value is £78,000). We get £16,000 a year in notional rent funding.
In 2007, we put the building into our self-invested pension plan (SIPP) at £215,000: the amount it was valued at that year. The other practice is offering us more than £100,000 less than the latest valuation figure on the grounds that, in five years time or sooner, notional rent may not be available or the building may not be approved for it.
If we accept this offer we would lose a massive amount of our SIPP's value.
What is a fair argument to get a price fairly close to the surgery's current value as a going concern? It is mortgage-free and the next rent review is due in two or three months. Should we seek another buyer?