We understand that there are many challenging and complex issues surrounding Lease Plus agreements. Our expert Healthcare team has a wealth of knowledge and experience in working across a wide array of programmes and initiatives. This understanding has lead to Davis Langdon advising the PCT Commissioner for a Community Hospital in North London being developed under a Land Retained Agreement (LRA) model.

Traditionally NHS LIFT premises development is built on a concept of commercial design, build, finance and operation (maintenance) set in a ‘partnering’ environment. This means that the LIFT Co invariably holds the freehold interest and the tenants occupy the premises under a bespoke Lease Plus Agreement. At the end of the Lease Plus term the premises revert to the LIFT Co or a new term is agreed.

In certain circumstances the NHS Commissioning Authority may wish to ensure the asset at the end of the initial term. In those circumstances the option appraisal will include the Land Retained Agreement (LRA) model. LRA is a derivation of the Private Finance Initiative (PFI), a framework which many of the contractual arrangements are drawn from.

For further details contact Martyn Evans, Paul Coomber or David Smith and / or visit the CHP website at www.communityhealthpartnerships.co.uk/qsframework