Applying for a UMF Grant (Utilisation and Modernisation Fund)? A guide for GP Practices

The NHS Primary Care Utilisation and Modernisation Fund (UMF) provides much needed capital investment to improve the standard of GP practice premises. With more than £100 million earmarked for 2025/26, GP practices are successfully applying for UMF Grant money. But from a legal perspective, exercise care! Understanding the terms of these UMF Grant agreements is critical so you know where liability and risk sits, as well as avoiding funding clawbacks or disputes over property rights.

Why Take Legal advice?

UMF Grants come with strict conditions. No money is free! You need to understand what the terms of the Grant are including risk and liability, the position on clawback, and how the UMF Grant sits alongside any existing bank finance you may have taken out on the surgery premises. Misunderstanding or overlooking certain Grant obligations could lead to serious issues, such as breaches of Grant terms, conflicts with existing lease obligations or mortgages, and difficulties when partners change.

Key Details

The 2025/26 funding round requires projects to be fully completed by March 2026, with a focus on refurbishing and reconfiguring existing Surgery premises. Technology-only solutions or entirely new builds will not qualify.

There are 3 UMF Grant scenarios – which of these apply to you?

1. UMF Funding exceeds £144,000 and relates to freehold property

Documentation: Freehold UMF Grant Agreement with a Legal Charge, Certificate of Title and a Deed of Priority will be required if the property is already charged to a bank. Note: This can raise practical challenges for GP practices with existing bank lending arrangements if NHS England takes a legal charge over the premises.

2. UMF Funding exceeds £144,000 and relates to leasehold property

Documentation: Leasehold Grant Agreement and Certificate of Title. GP Practices should check whether lease terms permit structural alterations or upgrades and obtain landlord consent where required. Note: that a Surgery lease must be in place to secure the UMF Grant money.

3. UMF Funding is less than £144,000 and relates to freehold or leasehold property

Documentation: Short Form Grant Agreement  

What This Means for GP Practices

UMF Grant agreements are legally binding contracts; not simply administrative formalities. They govern how money can be spent, how changes to projects must be approved, and what protections are in place in the event of changing circumstances.

Practical Steps GP Practices Can Take

• Check Property Ownership – review HM Land Registry entries to confirm all current partners are correctly listed, and update where necessary. Ask your solicitor to expedite any pending HM Land Registry application
• Secure Third-Party Consents – obtain approval from landlords and mortgage lenders before starting works.
• Review Your Partnership Agreement and/or Declaration of Trust Deed – ensure they reflect how capital improvements are to be treated between current and future partners. For example, if improvements enhance the value of a surgery building, your Partnership Agreement or Declaration of Trust Deed should make it clear on how this ‘benefit’ is treated if property –owning partners retire and are bought out, or new partners join the partnership and buy-in. The grant money should be treated in the same way as you have historically documented how NHS improvement grants were treated
• Prepare a Compliant Business Case – align your Project Initiation Document (PID) with ICB priorities and national guidance to avoid rejection.
• Grant Agreement Changes – it might say on the front page that the Grant Agreement is not open to negotiation, but it is, so take professional advice early!

The Utilisation and Modernisation Fund presents a significant opportunity for GP practices. By taking legal advice at the outset, practices can ensure they secure the benefits of the Grant money while avoiding costly pitfalls.

How DR Solicitors can help

If you’re a GP practice looking to benefit from the UMF, contact DR Solicitors today to navigate the Grant terms with expert advice.