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Key Considerations When Buying a Leasehold Dental Practice

Key Considerations When Buying a Leasehold Dental Practice

Leases are a key factor that can slow down a dental practice sale.

Kimberley Parker

29/01/2025

When it comes to purchasing a dental practice, there’s lots to consider. You will want to see growth potential within a dental practice for example and will be looking for a practice with a stable clinical and support team. Of course, having an appealing physical environment can be an important factor too. A key consideration is the tenure – whether the practice is freehold, or leasehold.

Leases are often a factor that can slow the sale process down, and we want to help you prevent this. Our Business Manager Kimberley Parker explores the key lease terms to consider when purchasing a leasehold practice.

Term remaining on the lease

One key factor to consider is how many years are remaining on the lease. Ideally, the lease should be renewable with a minimum term 15 years. This satisfies the lender requirements, whilst also providing you with security. Typically, the lease will not have the full term remaining and would therefore need to be negotiated, this is something that both we, and the solicitors will support you with.

This could also be an opportunity to review and negotiate clauses to ensure they align with your future plans. However, keep in mind that involving a third party, like the landlord, might slow down the sale process.

Clauses

You may view this as an opportunity to review and negotiate clauses to better align with your future plans. Since timing is a critical factor that can influence the sale of a practice, we encourage you to manage it strategically. While we focus on ensuring a streamlined process, we also prioritise thoroughness to safeguard every important detail. We’re here to support you every step of the way to help make the process both efficient and comprehensive.

Variance based on location

Lease requirements can vary by location—for example, leases in London might have specific considerations, such as a shorter term which the lenders are used to, and this is something that we can guide you through.

Register as a buyer 

Whether it’s your first or twentieth practice, our expert consultants are here to guide you through every step of the way of buying a dental practice.

We offer three buying tiers with a range of benefits:

  1. General Market Buyers – benefit from no membership fees, alerts to new practices to market, buyer-seller viewings arranged and access to Henry Schein Financial Services for practice funding
  2. Priority Tier Buyers – enjoy all the benefits of a general market buyer plus early access to practice particular, priority viewing slots and opportunity to secure purchase opportunities before they reach the open market
  3. Premier Tier Buyers – enjoy all the benefits of a Priority Tier Buyer plus closed-market buying pool, opportunity to secure larger practices suited to corporate ownership, fast-tracked practice marketing documents, opportunity to purchase practice groups and an account manager offering a network of Henry Schein Services

Register as a buyer or update your buyer requirements here

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Frequently Asked Questions

How long will it take to sell my dental practice?

The length of time can vary depending on the practice type and buyer type. Typically a practice sale completes within 4-10 months. For a more detailed discussion about your own circumstances please contact us.

When is the right time to sell my dental practice?

What are the current dental market trends?

What do buyers look for in a dental practice purchase?

What documentation will I have to prepare to sell my dental practice?

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