8.50 Three different scenarios exist:
• only land is leased to the private sector (paras 54 to 55);
• land and existing buildings are leased to the private sector. These buildings then may or may not be refurbished by the private sector and become inextricably linked with the PPP scheme (paras 56 to 61);
• land and buildings are leased to the private sector and the buildings become the responsibility of the consortium to demolish in order to make way for new build. Such buildings are written-off in the normal way.
8.51 Where the NHSScotland body owns the land on which the hospital is to be built, the NHSScotland body generally should retain its freehold interest in the land rather than sell this to the project company (paras 9 and 10). It is usual for the NHSScotland body to lease the land to the private sector under a headlease and for the private sector to lease the hospital site back to the NHSScotland body using an underlease. It may be the case that the headlease is at a peppercorn rental. The lease terms should be coterminous although, where good reasons exist, different lengths of term can be considered.