Before You Continue…

Our website uses cookies. By continuing to browse the site, you are agreeing to our Privacy Policy.

OK - continue
logo
Search for mortgage help
CALL US:  023 8098 0304
Mobile menu bars Close mobile menu
mortgage calculator mortgage calculator
request a call back Request a Callback
email us info@themortgagehut.net
call for mortgage advice chat online now
Search for mortgage help

Specialist Mortgage Help

  • First Time Buyers
  • House Mover Mortgages
  • Bad Credit Mortgages
  • Remortgaging
  • Equity Release
  • Self Employed Mortgages
  • Buy to Let Mortgages
  • Expat Mortgages
  • Commercial Mortgages

Useful Links

  • Home
  • Contact us
  • Mortgages
  • Mortgage Insurances
  • About Us
  • Customer Reviews
  • Refer a Friend Scheme
  • Expert Articles
  • News
  • Sitemap
  • New Build Mortgages
  • CIS Mortgages Explained

Privacy Settings

  • Privacy Policy

Dental Practice Commercial Mortgage

  1. Home
  2. Expert Articles
  3. Commercial Mortgages

Commercial Finance or Dental Practices

Purchasing a dental practice will take a lot of commitment and time, so you need to ensure that you have everything set in place as early in the process as possible, from having the right career experience to choosing the right practice. Your career history, like most commercial mortgages in the healthcare sector, will be important to the lender. If you are lacking the experience in the sector, then you may have to consider bringing someone onboard who has the history and put them onto your commercial mortgage.

Are There any Processes I’ll Need to go Through Before Applying?

If it’s your first dental practice, you’ll be a new entrant to the market, so Care Quality Commission (CQC) will want to speak to you and put you through their application process, whilst Disclosure & Barring Service (DBS) checks will also be taken.

Once you have made the decision to go ahead and purchase a practice, you are going to have to find the right one, and with current demand being much higher than available supply, this can be difficult.

There are also a number of potential pitfalls that you will need to avoid. Whilst lenders are happy to lend to dentists in the profession, if you’ve only ever worked as an NHS dentist and not in a fully private manner, but are wanting to purchase a private dental practice, your application may be looked less favourably upon by lenders. That is why it is ideal if you have experience in what you’re looking to purchase.

What’s the Difference Between Leasehold and Freehold?

You can purchase a dental practice on either a leasehold or freehold basis, so you will need to weigh up the pros and cons of both before you begin looking. Which one applies to you will depend on your affordability, though a freehold will be classed as ‘tangible security’ by the lender, so that option will be looked upon more favourably by them.

If you want to purchase a dental practice on a leasehold basis, you will need to pay particular attention to the length of the lease, as this is the period of time that the banks will lend to. You will also need to work out the best acquisition structure for your dental practice. If you get this wrong, you could end up paying more in solicitors’ fees to amend it and you may find that you are unable to hold an NHS contract within the structure that you have selected, which could lead to even more delays.

To minimise any other delays, your Care Quality Commission application will need to be submitted usually 10 weeks before the proposed completion date of the mortgage to the standards accepted by the CQC. The best advice we can give is to start the process for the CQC and your DBS checks as soon as your Heads of Terms have been agreed with the vendor.

What Sort of Due Diligence will be Involved?

The responsibility to ensure that the practice is viable and without problems that could affect the running of the business in future years is mostly out of your hands. But that doesn’t mean you can sit back and relax. Make sure that you review all of the information that you get from the seller’s team and go over them with your solicitor (who should be a dental specialist) and raise any issues that you pick up straight away. This process can take a long time, as there is a lot of documentation gathering involved, so remain patient.

What Sort of Rates will I be Looking at?

Like any mortgage, it varies; but you’ll be looking at a starting point of around 2.1% above the Bank Base Rate with arrangement fees ranging from 0-2%. The maximum term that most lenders will consider will be between 15-25 years and interest-only terms tend to be available on a 6-12-month basis with loan-to-values varying between 55-70%. Though, if you have enough supporting security, you may be able to borrow more than 70%.

At the Commercial Mortgage Hut, we have dental practice mortgage experts who will be able to assist you with indications of deposits that you will need, how much work you will need to do and will help you secure funding against the practice.

Our advisers will help your acquisition run as smoothly as possible and will take the stress out of the application for you. Contact one of our dental practice mortgage experts below to get your application rolling or if you have any further questions.

Looking for a Mortgage?

Find out if you're eligle in a couple of clicks, with no hidden credit checks.

Get Started

Related Commercial Mortgages Information

  • Commercial mortgages to fund hotels
  • Can I get a commercial mortgage to open a gym?
  • Doctor's Surgery Finance
  • Buy-to-Let Mortgage Interest Tax Relief Explained
  • Can I get a commercial mortgage for a farm?
  • Care Home commercial mortgages
  • Interest only commercial mortgages explained
  • Semi-Commercial Mortgages
  • What are the current rates for commercial mortgages in the UK?
  • Getting a commercial mortgage to buy a restaurant

Looking for a Mortgage?

Find out if you're eligle in a couple of clicks, with no hidden credit checks.

Get Started

Follow us on social media for updates

  • Like us on Facebook
  • Follow us on Twitter
  • See us on instagram
  • Watch us on YouTube

Contact The Mortgage Hut

Head office address of The Mortgage Hut
SOUTHAMPTON (HQ)
14 College Place
Southampton
Hampshire
SO15 2FE
Head office phone The Mortgage Hut
023 8098 0304
Head office email The Mortgage Hut
info@themortgagehut.net
Contact Us

The Mortgage Hut Limited is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.

The Mortgage Hut Limited. Registered Office: 14 College Place, Southampton SO15 2FE Registered in England Number: 07629941

Contact Us

Important Information

  • The guidance and advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.
  • Some products are not regulated by the Financial Conduct Authority.
  • Please note that The Mortgage Hut is not responsible for the accuracy of the information contained within any linked sites accessible from our website.
  • Your home may be repossessed if you do not keep up repayments on your mortgage.
  • There may be a fee for mortgage advice.
  • The actual amount will depend upon your circumstances.
  • The fee is up to 1% and a typical fee is £748.

Data Protection & Privacy

You voluntarily choose to provide personal details to us via this website.

Personal information will be treated as confidential by us and held in accordance with the Data Protection Act 1998.

You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.

When you use our website, we access your device/computer to set cookies and collect data.

We do this so it works, is secure and delivers the best browsing experience.

We also collect data to study how people use our site and help us improve our services and tailor our marketing.

For more information see our Privacy Policy.

back icon
close icon

Specialist Mortgage Advice

Mortgage Advice

Mortgage Advice
Get Started
Mortgage Advice

Mortgage Advice

Remortgage Advice

Remortgage Advice
Get Started
Remortgage Advice

Remortgage Advice

Buy to Let Mortgage

Buy to Let Mortgage
Get Started
Buy to Let Mortgage

Buy to Let Mortgage

Is the mortgage for your home or a business venture?

Residential Button Residential Hover Button
Buy To Let Button Buy To Let Hover Button

Are you buying or remortgaging?

Residential Button Residential Hover Button
Buy To Let Button Buy To Let Hover Button

Have you found a property yet?

Yes Button Yes Hover Button
No Button No Hover Button

Is the property house or a flat?

House Button House Hover Button
Flat Button Flat Hover Button

What is the property’s estimated value?

£

Deposit amount or equity?

£

Have you got any adverse credit?

Yes Button Yes Hover Button
No Button No Hover Button

What types of adverse credit?

Next Button Grey Next Button Blue Next Button White

What is you combined annual income (before tax)?

£

Sourcing Mortgages…

Nicola Arbon

“There's a reason why over 500 clients rate us as Excellent.”
Nicola Arbon, Managing Director and Mortgage Guru

Green Tick

Congratulations, we've successfully found you multiple mortgage options.

Next Button Blue Next Button White

Please enter your name to send you the results

Please enter the best email to send you the results

What is the best number to reach you on?

What day & time best suits you?

Next Button Blue Next Button White

Thank you

logo

A member of The Mortgage Hut team will review your enquiry & we’ll be in touch to discuss in more detail & to advise on the options available to best suit your needs.

Head office phone The Mortgage Hut 023 8098 0304