Guiding a dentist through his first practice purchase

Client Background

Our client, an experienced dentist, was ready to take the next step in his career by purchasing his own Practice in Scotland. The Practice would serve a mix of private and NHS patients, offering a strong long-term business opportunity.

Challenges Faced

Because the premises were leased, the client was acquiring the goodwill, fixtures and fittings of the business only. This meant there were no tangible property assets available for lenders to secure against. We therefore needed to identify a lender willing to provide substantial funding without seeking additional personal security such as a second charge on the client’s home or other property.

How We Helped

As this was the client’s first acquisition, we guided him through each stage of the process from initial assessment to completion.

We proactively recognised the value of securing long-term stability for the client and advised him to negotiate an option to purchase the freehold in the future. With our input, the new lease included both an option to buy the freehold and a clear mechanism for determining the purchase price—ensuring transparency and certainty for the client. We can often structure Freehold acquisitions in such a way that loan repayments are broadly similar to the rent which means the cost of ownership is close to the cost of renting. The difference though is that owning the Freehold of the building will add considerable value, meaning that when he comes to sell the Practice he can either keep the Freehold as an income-producing investment or receive a greater sale figure because it would then include a property value.

Understanding that dentists often have limited availability during normal office hours, our consultant made himself available early mornings, evenings, and even weekends. As completion approached, unexpected issues emerged that could have jeopardised the deal. We managed communications promptly—handling emails and calls outside normal hours to resolve concerns and keep the transaction on track.

The Outcome

We successfully secured a £720,000 loan with a high street lender at 80% loan-to-value—without the need for any personal property security. At this level of borrowing, achieving unsecured support of this nature is uncommon and it reflects our ability to structure a deal that balanced the lender’s requirements with the client’s best interests.