1. Introduction

Building the right home is the national guidance on housing for people with a learning disability and autistic people and outlines how a range of housing options can be provided to people to support them to leave mental health hospitals, or to prevent them needing admission to one. Its aim is that more people live in their own home while getting the support they need to live healthy, safe, and rewarding lives.

It is an accompanying document to Building the right support, which sets out an ambition to develop sustainable community infrastructure and reduce the reliance on inpatient care for people with a learning disability and autistic people.

Since 2016, NHS England has made available capital grants to support the ambition described within Building the right home and, from April 2022, this funding has been managed nationally, working in partnership with integrated care boards (ICBs) and NHS regional teams to prioritise spend in line with local, regional and national priorities aligned with the aims of the NHS Long Term Plan.

The aim of the NHS capital grant funding is to improve access to specialist and supported housing options for people with a learning disability and autistic people, working with colleagues across housing, health, and social care. NHS England capital for the Learning Disability and Autism Programme can be granted to purchase and develop accommodation under Section 256 and Section 257 of the National Health Services Act 2006 (‘the Act’).

This guidance will help ICBs, local authorities and support, care and housing providers to access capital grant funding to develop housing that will play a key role in reducing the number of autistic people and people with a learning disability in a mental health hospital setting, as set out in the NHS Long Term Plan.

 This document sets out the process for:

• applications for a new grant of capital funds for the purchase, development or redevelopment of land or a property
• making changes to an existing capital grant agreement (CGA).

Any queries from grant applicants, recipients, ICBs and local authorities should initially be directed to the senior housing manager for the relevant NHS region.

2. About NHS England capital grants

2.1 The legal framework

NHS England can make capital grants under the Act. For the purposes of grants under Building the right home, the relevant sections of the Act are:

The Secretary of State for Health and Social Care may use its powers granted under section 256 (6) to impose conditions on the grant of capital funding. These are found within The National Health Service (conditions relating to payments in connection with property by NHS bodies to local authorities and other bodies) Directions 2016 (‘the 2016 Directions’).

The key conditions are that when making a grant payment, NHS England must be satisfied that:

• The payment is likely to secure a more effective (better) use of public funds than the spending an equivalent amount on the provision of other services under arrangements made under sections 3(1), 3A or 83; or pursuant to regulations made under section 3B(a) of the Act.
• The amount of the payment is determined before the project begins.
• The recipient intends to meet the balance of the total scheme costs of the project:
  • that it is not funded by the grant made by NHS England; and
  • for so long as the project is considered by NHS England to be desirable.

2.2 NHS England’s legal agreements

The 2016 Directions require NHS England, when proposing to make a payment under Section 256 or 257, to put in place appropriate legal documentation before the grant is made.

This is achieved by way of a CGA and legal charge between NHS England and the grant recipient.

A grant made directly to a local authority to support the acquisition or alteration of a property owned by the local authority, does not require the local authority to enter into a legal charge. Direction 4(5)(b) of the 2016 Directions states that for payments to local authorities, a Land Registry restriction in favour of NHS England should be placed against the property’s registered title.

The restriction will require NHS England’s consent to any dealing with the property and therefore would allow NHS England to ensure the terms of the capital grant agreement have been complied with before any dealing can be formally registered at the Land Registry.

NHS England’s standard CGA and legal charge have been prepared in line with the Act and 2016 Directions and will not be amended except in exceptional circumstances. For the avoidance of doubt, provisions securing compliance with the 2016 Directions will not be amended.

A copy of the standard form CGA and legal charge can be obtained by contacting the senior housing manager for the relevant NHS region.

2.3 What can an NHS capital grant be used for?

To be considered for an NHS capital grant under the NHS England Learning Disability and Autism Programme, the following criteria must usually be met:

• The person who will live in the accommodation should be autistic or have a learning disability.
• All other capital funding routes have been exhausted.
• Capital investment is the most effective cost solution for securing accommodation within the required timescales.
• Specialist accommodation or adaptations are required.
• No existing properties on which the NHS has a legal charge can be repurposed, or the NHS property requires funding for adaptation.
• Projects align to the model described in Building the right home (NHS England, 2016).
• Investments should consider any carbon footprint and ideally demonstrate either an energy performance certificate rating of A for a new build property, or B for an existing property.
• To contribute to accommodation which will either:
  • support people to be discharged from mental health hospitals into their own home, or
  • support people where there is a high risk of a future admission to a mental health hospital, prioritising those whose current living arrangements will put them most at risk of admission.

2.4 What types of projects can be funded with an NHS England grant?

The capital funding can be used to provide accommodation in different ways:

• To purchase land and build new accommodation on it.
• To carry out refurbishment/adaptations to an existing building which is owned by the recipient to make it suitable for use for an identified person or small group of people.
• To support the purchase of a property (or properties) on the open market for an identified person or small group of people.

NHS England supports people to live in their own homes through settled supported housing accommodation models and does not usually fund residential care unless in exceptional circumstances.

Developments involving modular methods of construction will be considered on a case-by-case basis.

Bids for NHS England capital to support shared home ownership for people with a long-term disability (HOLD) can also be made for consideration by NHS England, provided that the person has a learning disability or is autistic, all alternative sources of funding have been exhausted, and/or there are no alternative sources of funding available.

As with all other bids, the grant recipient would need to undertake a full options appraisal setting set out all the routes for funding which have already been explored, and explaining why these are not available or are insufficient or inappropriate.

NHS England may seek legal advice to ensure that by contributing to a HOLD scheme, it will be complying with all relevant statutory and NHS England policy requirements.

More information will be sought as required advice on the approach can be sought from the senior housing manager for the region, as with all other bids.

2.5 How does NHS England prioritise projects?

Projects are prioritised at a local level, before being discussed with the senior housing manager for the relevant NHS region. The region will then consider the criteria for accessing NHS England capital funding, to determine which schemes are put forward for consideration for national funding.

NHS England has developed prioritisation criteria which consider a range of factors including the patient’s situation, value for money – both capital and revenue – and whether funding is being contributed from other sources. These are used to determine which schemes should proceed for investment using NHS England housing capital.

These prioritisation criteria can be found on the NHS England learning disability and autism housing pages on FutureNHS (login required).

2.6 Which types of organisations can access NHS England learning disability and autism capital grants?

NHS England capital grants can be made to a local authority, registered housing association, voluntary organisation (for example an organisation with registered charitable status) or private registered provider of social housing.

The grants cannot be made to a private individual, private organisation, or an NHS hospital trust.

2.7 What happens if commercial borrowing is used alongside an NHS England learning disability and autism capital grant?

If the recipient must use commercial borrowing to assist with the purchase or adaptation of a property, NHS England may agree to its legal charge being ranked lower in priority than that of the commercial lender.

This would enable the recipient on disposal of the property to repay (redeem its charge with) its commercial lender first, and then repay NHS England once the lender’s priority amount is met or the debt is satisfied.

However, NHS England will need to be satisfied that by agreeing to the commercial lender’s charge having priority, the project will be delivered in a more efficient and effective way and that its investment is also secured.

NHS England may impose any conditions it considers appropriate when agreeing to reprioritise the charges. As standard, NHS England will require that:

• the amount being borrowed is a fixed amount
• there is enough equity in the charged property to ensure NHS England gets full repayment of the grant as set out in the capital grant agreement
• a deed of priority is entered into to deal with the priority of debts owed to the respective parties.

If a grant recipient intends to request reprioritisation of a legal charge, this should be discussed with the NHS England senior housing manager for the relevant region at project initiation document stage (see below for further details of the different stages of capital grant application).

3. Requesting a new capital grant

New projects can be considered at any point during the year. The relevant NHS England senior housing manager can provide information to prospective grant recipients on the process for submitting expressions of interest and the necessary supporting documents through NHS England regional and national governance processes, to allow enough time to develop them to gain approval and enable completion of the capital grant agreement in time to spend the capital within the allocated financial year(s).

3.1 Process for applicants and partners progressing bids for capital

There are several stages of progressing bids for capital allocation from NHS England. The figure below provides a schematic summary of the process of this, and further information is included about each stage in the following diagram:

Figure 1: NHS England capital allocation bid process

The image above shows a flow diagram with stages going from left to right. There are 6 stages shown. The first stage is local or regional need identified. The second is the capital allocation approval summary going to the first capital allocation group. The third stage is the project initiation document and capital allocation approval summary going to the expert reviewer group. The fourth stage is the project initiation document and capital allocation approval summary going to the second capital allocation group. The fifth stage is the project initiation document and capital allocation approval summary going to the business case approvals meeting. The final sixth stage is sign off from the chief financial officer. There is a box underneath the flow chart which crosses over all 6 stages of the process. This shows that throughout the whole process regional capital review meetings take place.

Key:

• CAAS: capital approval application summary
• CFO: chief finance officer
• PID: project initiation document

3.1.1 Application and approval process – Local need identified and local/ regional processes completed

A housing need is identified locally, and a range of funding options are fully explored in partnership with the NHS England senior housing manager, who will help to determine if it would meet the NHS England capital grant application criteria (see section 2.5 above).

The integrated care board (ICB) needs to demonstrate support from the local learning disability and autism partnership board, or an equivalent local group that fulfils the same functions as a partnership board.

The senior housing manager for the relevant NHS region will initially assure all projects for capital investment and will develop a capital approval application summary (CAAS), which will be reviewed at a national capital allocation group (CAG).

3.1.2 Application and approval process – CAG1

At CAG1, a panel comprising representatives from the Learning Disability and Autism Programme will review the CAAS to decide if the project should be developed into a full PID, based on whether the following criteria have been met:

• the property meets the person’s individual needs and delivers the required outcomes
• there is a strategic fit with Building the right home/Building the right support and any criteria set by the local system
• the criteria for accessing NHS England capital are met
• the project is likely to be deliverable within the timescale set out within the application.

3.1.3 Application and approval process – expert review group

If the scheme is supported after the first submission to CAG1, the senior housing manager for the relevant NHS region will support the applicant to develop a full PID requiring detailed information to be provided to progress the project through the approval process.

The senior housing manager for the relevant NHS region will work with local partners to prepare and review the case for investment. They can provide templates and examples to help applicants prepare their bids.

The PID is submitted to the expert review group (ERG), which is formed of representatives from NHS England Finance and Estates teams, the national Learning Disability and Autism Programme, and other senior housing managers, who peer review the quality of PIDs and the supporting information as detailed below.

Prior to ERG:

• The ICB will complete the PID to reflect the supporting documents/information below.
• These supporting documents will be placed in a zip file with the completed PID document.
• Once the senior housing manager is satisfied that all necessary information has been provided, the PID will be sent for review at ERG.

The initial submission of the PID to ERG must be supported by these documents as a minimum:

• options appraisal (setting out all viable options considered)
• scaled design plans, typically internal, external and elevations, as applicable
• an accommodation specification
• a pen profile of the person/people who will be using the property
• completed design guide checklist, and confirmation that design fits with best practice regarding design principles
• service statement (setting out the service to be delivered and why it is needed)
• estimated costs, including a breakdown of detail to cover professional fees, site preparation, internals and externals
• value for money analysis/cost-versus-benefits case including a property search
• a revenue and capital appraisal template provided
• estimated works costs
• a programme plan detailing key timelines linked to design plans, tender process, planning permissions, start on site, build phase(s), and completion
• procurement approach (how value for money will be achieved for development works)
• property/land title (as available)
• written agreement to the acceptance of a capital grant agreement (CGA)by the grant recipient
• any land title as applicable, for example if land is owned by the recipient
• projects over £3 million will require an additional detailed business case
• projects over £1 million will require a more detailed costed options appraisal.

Once a grant recipient has been identified, the grant recipient should work with the senior housing manager to ensure that:

• the grant recipient’s legal team have sight of, and agree with, the NHS England capital grant agreement and its conditions
• the grant recipient is aware that before the legal process can commence, an undertaking for legal costs will be required from the grant recipient’s solicitor to cover NHS England’s legal costs and that NHS England therefore recommends sufficient funds are deposited with the grant recipient’s solicitor to cover this
• the grant recipient provides a high-level estimate of the capital needed, timescales for delivery that align with spending in-year or across a number of years, and a description of the service offer, size, who it is for and how it will deliver benefits
• the PID and supporting documents include detail of any assumptions, evidence of outcomes and other benefits
• the proposal has been developed in partnership/agreement with, for example, a registered housing provider, provider charity, ICB or local authority.

Following review, ERG will recommend to the CAG whether the request for funding should be supported. ERG may recommend conditions of initial approval, or request amendments to the PID. ERG will indicate when these amendments or conditions need to be met – for example, prior to submission to business case approvals (BCA) for approval, or before capital is released.

Every grant approval will include the standard approval conditions to be met. Usually this involves providing evidence of:

• planning permission full approval notice (as applicable)
• final tendered costs within initial approval amounts
• other conditions may be recommended by the ERG or regional team, and these will be discussed at the time with the bidder if applicable.

3.1.4 Application and approval process – CAG2

Once ERG conditions have been met the CAG will review the full PID, to agree budget allocation. Budget will be allocated in line with the prioritisation criteria described previously (section 2.5).

CAG meetings will also review cost increases and determine whether further approval is required from the deputy chief finance officer – operational finance via BCA meeting, in line with the organisation’s standing financial instructions (SFIs).

All projects for NHS England capital grant funding need to be supported and signed off by the relevant ICB, local authority, grant recipient and regional director of finance for the integrated care board (ICB) area; and respective signatures will be required on the PID itself.

3.1.5 Application and approval process – business case approvals (BCA)

Once approval from CAG2 has been given, and any residual conditions met, the senior housing manager will submit the relevant documents to the BCA inbox.

The deputy chief finance officer – operational finance or equivalent in line with NHS England SFIs will provide the final approval for the capital expenditure

There may be a requirement to re-submit to BCA if further information is required prior to approval – the senior housing manager for the relevant NHS region can support this.

Once the PID has all the relevant approvals and signatories, the legal process for completing the grant documentation can begin.

3.1.6 Application and approval process – legal process

The senior housing manager will inform the grant recipient when NHS England’s Legal team will be instructed to complete the grant documentation. At the same time the grant recipient will be asked to instruct its legal team, depositing money on account with its lawyers to cover an undertaking to pay NHS England’s legal fees.

NHS England’s appointed lawyer will start work when they receive the recipient’s lawyer’s undertaking to pay the legal fees for completing the legal documentation on NHS England’s behalf. NHS England’s panel lawyers are not able to start work until they receive the undertaking from the grant recipient’s lawyers.

The recipient’s solicitors will be required to provide NHS England’s solicitors with a completed certificate of title confirming that the property can be used for the intended use and that there are no title matters or otherwise that would adversely impact the use of the property. NHS England’s solicitors will provide a standard form certificate of title to the recipient’s solicitors to complete.

Once all approval conditions are met and all the legal checks have been carried out to NHS England’s satisfaction, the grant documents are dated. This is what is meant by completing the documents and is the point at which the agreements become legally binding.

NHS England is not contractually obliged to continue with the project until the grant documentation is completed.

Until this point all project development activity is undertaken by the recipient at its own risk.

3.1.7 Implementation

The capital funds will be released in pre-agreed payments in line with the programme plan. These payments and agreed milestones are replicated in the CGA.

NHS England will require a certificate of practical completion to evidence completion of the works and release the final payment of the grant funding.

NHS England may carry out a review at any time after the service has been operational for six months. Project reviews help to inform and improve management of future projects. The outcome of the review will be fed back to ERG and if requested, to the Secretary of State for Health and Social Care.

3.2 What form of security is required for a grant?

Under the current 2016 Directions, the recipient (except in the case of a local authority) must accept a legal charge in favour of NHS England being secured against the property purchased or adapted with the grant.

The recipient’s legal team must sign the project initiation document to agree to the proposal. This includes providing supporting evidence that they have reviewed and agreed to the standard legal charge documents. When the project is ready for the grant to be completed, the finalised documents will be executed by the recipient and NHS England will sign and seal them.

3.3 What can be paid for using NHS England capital?

Any adaptations to premises relating to the building’s fabric (for example replacement windows) or its integrated building services (for example boilers, wiring, pipework) can be funded, as well as items integrated into the building that are not moveable or readily removable without damaging the building (for example bathroom fittings and kitchen units).

To clarify, white goods are not normally included – even when they are integrated appliances.

Where an adaptation is for moveable or removable equipment (for example a bed hoist), the integrated care board (ICB) will need to access funding for this using alternative funding mechanisms for equipment to support care services generally. This could include using council/ICB community equipment budgets, or other areas of joint funding covering capital purchases that support people to stay in their own homes.

Independent charities such as the Disabled Living Foundation can advise – as can occupational therapists – who can provide an assessment in the home to support how options will be funded.

The ICB should state clearly in its project initiation document how it intends to fund any moveable/removable equipment that is not eligible to be paid for using the capital grant. For example, assistive technology integrated into the development can be funded via the NHS England capital grant, but other technical equipment would likely be funded through health and social care community equipment, assistive technology, or Better Care Fund budgets.

3.4 What is an acceptable standard of housing for new-build properties?

It is expected that new-build properties meet the technical standards set out in the NHS England design guide checklist for new projects. This is available from the senior housing manager for the relevant NHS region. This guidance is based on the adaptable home’s standards set out in Building regulations: approved document M: access to and use of buildings, volume 1: dwellings that exceed recommended national space standards for dwellings.

In general, specialist and supported housing for people with a learning disability and autistic people should be bigger than standard to enable access, safety and the provision of support and care. Housing specifications should be developed with the person in mind, taking account of their needs and wishes. Also, housing specifications should:

• meet technical housing standards – nationally described space standard
• be consistent with best practice in design, accessibility, and flexibility in relation to supported and specialist housing
• be future proofed, taking into account anticipated changing needs of the occupant(s)
• meet the sensory needs of the occupant(s).

For all capital requests, the design should fit the environmental requirements of the people living in the accommodation and using the service. Considerations would need to be made around flexibility, space, location, accessibility, use of materials and cost.

Similarly, as far as possible, the design should demonstrate good practice in the design of supported housing and short-term residential placements. Specific advice can be sought from the senior housing manager for the relevant NHS region and NHS England estates colleagues.

3.5 Care Quality Commission registration requirements

Capital approvals must be consistent with the Care Quality Commission’s (CQC) registration requirements for care or health services and the principles in its policy Right support, right culture.

The project sponsor, being the integrated care board, must:

• determine the registration requirements for the property(ies)/service and it is good practice to seek CQC’s advice at an early stage of the project
• confirm there will be no requirement to register the property/service as a care or nursing home or as a healthcare facility
• quantify in the PID/risk assessment the extent of known risk in relation to gaining CQC registration as a home or healthcare facility in the future. This should include evidence of CQC’s opinion before project initiation document approval.

4. Process for making changes to an existing grant agreement

• A variation to an existing capital grant agreement (CGA) may be required if:
• the grant recipient is seeking to change the use of a property
• it wants to invest additional capital or make alterations to the property which may change the proportionate shares each party holds in the property
• reconfiguring, for example corporate restructuring, is planned
• NHS England is making a further grant which results in a change in the proportionate shares in the property.

Requests for changes to current grant agreements, or for additional funding, will need to be discussed with the senior housing manager for the relevant NHS region in the first instance (see below for additional funding for an existing capital grant).

For variations and new grants, NHS England’s legal fees will have to be paid by the grant recipient.

4.1 Additional funding for an existing capital grant

Recipients can request additional funding under an existing capital grant to pay for changes to the property, for example changing a property into self-contained units. This does not usually cover extending the building, or costs for usual repair and replacement works to keep the property in good condition.

Additional funding for an existing grant will require a new project initiation document (PID) setting out the case for additional funding. The process is the same as for new funding requests, and for new grants: that is, the development of a new PID and supporting documents. Additional funding is usually only considered on historical grant agreements (usually over five years), and recipients are discouraged from making multiple bids on the same property in close succession.

The purpose of any additional grant must be to meet the current priorities of the NHS England Learning Disability and Autism Programme.

4.2 Discharge or redemption of a grant

• There are various reasons why a grant would need to be redeemed:
• on the sale of a property
• on a change of its use to a purpose not consistent with the grant agreement
• NHS England and the integrated care board agree that the recipient may transfer the property to another housing association
• NHS England may request repayment of the grant if the recipient is in breach of the CGA
  • for example, if NHS England is informed, or a review finds, that the property is no longer being used for the intended purpose of providing accommodation for people with a learning disability or autistic people.
• if any of the repayment events in the CGA and/or legal charge occurs.

4.3 Process for recipient organisations seeking changes to a capital grant agreement

4.3.1 Seeking changes to an existing NHS England CGA

Firstly, a discussion should be held with the NHS England senior housing manager for the relevant NHS region about the type of change required to the current CGA. This could include variation to an existing grant, for example to request more capital, or a business name change, land boundary change, service model change.

Where there is a need for a variation to an existing CGA, NHS England’s legal representatives and their panel solicitor will need to review relevant documents relating to the change and will request specific information where appropriate. This information could include a current valuation report, evidence of the upkeep of the property, and evidence of the grant recipient’s investment in the property.

4.3.2 Variation of a CGA or NHS England consent to a change

If a variation of the CGA is needed – for example, where the recipient wishes to invest their own capital and change the contribution of investment within the CGA – all details of the proposed change need to be evidenced and shared with NHS England via the senior housing manager for the relevant NHS region. This will include providing all current paperwork relating to the existing grant.

The senior housing manager for the relevant NHS region will check whether the recipient and accommodation still qualify for an NHS England grant, and if the terms of the original grant are still being met. Once the senior housing manager is clear on the status of the grant and the type of change required, they will work with the grant recipient to provide the necessary information to the NHS England legal team to action.

NHS England’s Legal team will ensure that the appropriate documentation is in place. On the instruction of the senior housing manager, NHS England’s in-house property lawyers will instruct external solicitors to review and prepare the legal documents required for a consent to a change.

In the case of NHS England providing consent, this could be given where the recipient wants to lease the property or temporarily use the property for a different purpose. In these cases, NHS England legal with their panel solicitors will review and provide advice on the change proposed.

The NHS England legal team will assess whether consent can be given under the existing CGA, or if a variation or new CGA is needed. A new CGA will be needed if the current documents are very old, or they refer to a former NHS organisation such as a primary care trust or health authority; or if the CGA and/or legal charge refers to the Secretary of State for Health.

If there is a need for a new CGA, this may require a valuation carried out on behalf of NHS England and the recipient. This provides independent assessment of the value and condition of the asset.

Following signing of the new documents (deed of variation, new CGA and/or legal charge [as applicable]) copies will be held on the NHS England learning disability and autism grants register. The NHS England Legal team, the recipient and their solicitor will also be provided with copies of the completed documents.

Following signing of the new documents (consent, variation or new CGA) copies will be held by the NHS England Legal team on their central register and by the recipient or their solicitor. Please note that the CGA is a standard agreement and cannot be renegotiated or changed, and that the costs of the NHS England’s panel solicitors associated with varying the agreement will need to be paid by the grant recipient making the request.

4.3.3 Discharge (ending) of a CGA

Where a grant comes to an end, and the legal charge is released, this is called a ‘discharge’. This can happen for a variety of reasons.

Where a grant ends, a valuation of the property will be required to determine the capital amount to be repaid to NHS England.

Before this can progress, the senior housing manager for the relevant NHS region must first check with local commissioners as to whether they have a potential alternative use for the property/land and whether they have a further need to commission services for people with a learning disability or autistic people from this property. If there is no use for the property/land, then the housing provider can proceed with progressing the discharge.

To discharge a charge, the senior housing manager for the relevant NHS region will ask the grant recipient to provide:

• current grant documents (CGA and legal charge, or CGA if the grant was to a local authority)
• a valuation report prepared by the district valuer or an independent surveyor who is a member of the Royal Institution of Chartered Surveyors (RICS), on behalf of both the recipient and NHS England
  • the valuation must contain details of the condition of the property and a current valuation made on the assumptions contained in the grant documentation
  • who pays for the valuation of this report will be detailed in the CGA and is at NHS England’s discretion.
• an official copy of the title register of the property
• any NHS England-approved investment in the property made by the grant recipient over and above normal spend on the upkeep of the property during the grant period
  • it must be clearly documented what the investment was spent on and how much was spent
  • if approved by NHS England, these investments can be considered on disposal of the asset.
• details of reasonable disposal costs (typically legal fees and estate agent’s fees) incurred in the sale of the property (if under the terms of the CGA disposal costs can be deducted from the sale proceeds)
  • these need to be evidenced by providing invoices which must be reasonably and properly incurred
  • these costs are then deducted from the proceeds of sale.

Once these details are provided to the senior housing manager for the relevant NHS region they will work with NHS England’s Legal team and the grant recipient to proceed to disposal and discharge of the grant.

The recipient will need to engage their lawyer and provide necessary documents to the NHS England Legal team.

The grant recipient shall obtain at its own costs a current market valuation in the joint names of NHS England and the grant recipient to determine the value of the property to be sold at open market value, or what the value would have been if it had been maintained properly. Normally this would take the form of a report from the district valuer, but an independent RICS valuation is acceptable for open market sales in most circumstances.

Standard clauses in the grant agreement require the property to have been maintained and in a good state of repair. In some cases, if this has not been done, NHS England may be entitled to refuse to authorise a sale unless the grant recipient completes the works, contributes to the cost of necessary works, or pays the difference in the value.

If there is evidence available, the recipient can take account of past additional investment in the property (over and above general upkeep) which was approved by NHS England, so this can be reflected in the apportionment of sale proceeds.

The NHS England Legal team will prepare and execute the legal form of release. The grant is repaid following the sale or other discharge of the legal charge of property and the release document is provided to the recipient’s solicitor to release the property from the registered legal charge or title restriction (as applicable). If a case is complex, this work is sometimes outsourced to a solicitor’s firm.

4.4 Consent to vary under existing grant terms

NHS England can consent to the property being leased to an organisation by the grant recipient. By exception NHS England may permit the creation of a legal charge which would have a higher priority than the NHS England legal charge.

NHS England can also consent to other minor changes to an existing CGA: for example, a change in the number of residents, deregistration of nursing home, appointment of new care provider.

If it is not clear whether a change requires NHS England’s consent under the terms of the CGA, advice should be sought from the NHS England Legal team via the senior housing manager for the relevant NHS region.

To gain consent from NHS England, the following stages are needed:

• The grant recipient requests consent to change something relating to the agreement providing full details of what is required and why.
• The grant recipient prepares the necessary documentation relating to the request for the NHS England Legal team.
• Either the NHS Legal team or one of NHS England’s panel solicitors will prepare the consent requirements and revised documents; these may need to be signed and sealed. The recipient must meet NHS England’s legal costs and instruct their solicitors to undertake to pay NHS England’s legal costs.

The NHS England Legal team will work with the panel solicitors and recipient’s lawyers to process the transaction and any post-completion steps.

4.5 Use of standard legal documents to make changes to existing grants

After receiving a letter from a grant recipient asking to carry out one of the transactions described above (a variation, discharge, or consent), the senior housing manager for the relevant NHS region will respond, setting out what needed to complete the transaction.

NHS England has standard legal documents to support recipients. All grant recipients will be expected to agree to the use of these documents for a grant to be released or transaction processed. Standard legal documents are available from the senior housing manager for the relevant NHS region for each region; these are:

1. letter to district valuer (DV)/Royal Institute Chartered Surveyors (RICS) valuer from registered social landlord (RSL) or local authority requesting valuation of a property in relation to a new grant

2. letter to DV/RICS valuer from grant recipient requesting valuation to support a redemption event

3. capital grant agreement for registered social landlords

4. capital grant agreement for local authorities

5. standard legal charge document.

Letters (1) and (2) are suggested letters that the grant recipient sends to the DV/RICS valuer. Grant recipients can use their own letters but should make clear that the valuation report must be in the joint names of both NHS England and the grant recipient.

Documents (3) to (5) are the standard capital grant agreement and legal charge documents. These should be accepted by a grant recipient as written and are not open to negotiation except in exceptional circumstances at the advice of the NHS England Legal team.

5. Further information

A full contact list of senior housing managers for the relevant NHS region and information on capital grants is available on the NHS England website.

The senior housing manager for the relevant NHS region can provide the following key documents:

• NHS England standard legal agreements
• standard legal letters
• project initiation document
• letter for new application and redemption of existing grant
• NHS England learning disability and autism design guide checklist.

Case studies and resources relating to people with a learning disability and/or who are autistic are available from The Housing Learning and Improvement Network, the FutureNHS platform (login required) and senior housing manager for the relevant NHS region.

Publication reference: PRN00477