In article <[log in to unmask]>,
[log in to unmask] writes
>How does PFI differ from cost-rent?
Hugely
The PFI that someone wants us to do involves - the company finance it
and then build it (to agreed levels - cost rent limits I think). GPs
pay 'rent' - which may well be agreed at a level above local rents. GPs
get notional rent at the agreed level.
So is a no-cost option to GP for shiney new building - great eh?
...er.....well.....not so great actually....
GPs sign up for 25 years of paying this rent - with no escape.
Imagine if notional rent becomes cash limitted
Imagine if notional rent disappears
Imagine if GP as we know it disappears
Imagine you have to compete in a true market place.
You have 25 years of paying rent on a building that you cannot sell and
could not sublet for the amount of rent you are paying for it (remember
how nice they were at the beginning accessing the political will to
allow higher levels than you could otherwise afford)).
Lakes and jumping spring to mind....
If you get mortgage and cost rent - if it all goes bang you can decide
to part-let, sell or whatever - yes you may still take a loss - but you
wont be tied to (in our case circa k70 per annum) rent payments.
Now, there are ways of PFIing yourself - someone on the list can advise
on this.
HTH
Cheers
--
Jelly Bean
'When you get fed up surfing....
.....go find some waves'
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