Managing the real estate aspect of a healthcare practice operations is crucial, particularly when a new partner joins or an established partner retires.
Any modification to the partnership will affect the ownership of the property for practices who own their buildings.
Existing partners will probably want to surrender their stock as part of their leaving plans, but new partners will need to purchase the building (though no actual monetary investment is needed).
The firm will have to refinance its facilities in order to accomplish these two goals.
Having knowledgeable consultants by your side from the start will help you handle the process as effectively as possible and make sure you’re aware of all the options accessible for your partners and practice.
Verifying the building deeds’ names before initiating the refinancing procedure is imperative. Additionally, it will help to prevent delays in the legal process.
Obtaining a current property valuation is an essential first step. Given how well-maintained most healthcare facilities are, the property’s value has probably increased.
This money will not be subject to capital gains tax if they are not selling their firm shares.
Because of this, banks will probably offer them better terms—100% LTV refinance transactions, sometimes even better, easily accessible terms—than other business clients.
Your expert advisors can give you details on the current lending possibilities that are on the market. Although practice loans typically offer better terms, this is true for the practice as well as the partners individually.
The partners and partner(s)-to-be will then need to consider all the options presented to them before deciding on the most appropriate one for their needs.
Your advisors will liaise with the chosen lender to ensure smooth refinancing.
Given the current situation, it might take several months to finish the procedure. Nevertheless, gathering all the financial data required for the activities as soon as feasible should aid with its successful completion.
And, with these arrangements often involving significant seven-figure sums, getting the right kind of guidance as the process plays out is more important than ever before.
For further information or advice on the process of GP practice refinancing, and on all business and financial aspects of healthcare, please contact Maxine Pott via maxine.pott@r-m-t.co.uk or on 0191 256 9500.
+ There are no comments
Add yours