Mortgage for a medical practice

We assist borrowers with commercial mortgages for medical practices by sourcing the most suitable lending products, accessing specialist and off-market healthcare lenders, and managing the full range of criteria, valuation, and affordability considerations unique to the medical sector. Our role is to structure each application to lender appetite, ensuring income security, experience, and property suitability are presented in the strongest possible way.

A mortgage for a medical practice is a specialist form of commercial lending used to purchase, refinance, or release capital against premises occupied by healthcare professionals, including GP surgeries, private medical clinics, dental practices, and specialist consulting facilities. Medical practices are generally regarded as defensive, low-risk assets, particularly where income is underpinned by NHS contracts or long-standing private patient bases.

Who Uses Medical Practice Mortgages

We arrange medical practice mortgages for:

• GP partners purchasing or refinancing surgery premises
• Private medical and dental practitioners acquiring clinics
• Healthcare companies expanding or consolidating premises
• Investors purchasing healthcare property let to medical operators

Ownership structures commonly supported by lenders include partnerships, limited companies, LLPs, and pension-backed structures, subject to structure and affordability.

Loan-to-Value (LTV)

Commercial mortgages for medical practices are typically available at 70-100% loan-to-value, depending on property type, income security, and borrower profile.

• Owner-occupied practices with strong, stable income can achieve higher leverage
• Investment properties let to medical tenants on long leases attract robust terms
• Highly specialised or bespoke premises may be assessed more conservatively

Final loan size is determined by the lower of affordability or valuation.

Affordability and Lending Assessment

We structure affordability in line with lender methodology:

• Owner-occupied medical practices are assessed on practitioner income and trading performance, with lenders reviewing historic accounts, NHS contracts (where applicable), private income streams, and cost sustainability.
• Investment medical practices are assessed on rental income, with lenders applying DSCR and interest-rate stress testing to ensure income durability.

For GP surgeries, lenders place particular emphasis on the stability, assignability, and remaining term of NHS contracts.

Valuation Methodology

Selecting the correct valuation approach is critical. Medical practice valuations typically follow:

• Going concern or good-will valuations where the property is let or income-producing, particularly for NHS-backed tenants
• Vacant possession-led valuations for non-income producing owner-occupied premises

Valuers also consider lease structure, covenant strength, regulatory compliance, and alternative-use potential, all of which can materially affect leverage and pricing.

Interest Rates and Loan Terms

Medical practice mortgage pricing is generally competitive due to the perceived resilience of the sector. Rates and terms are influenced by:

• Loan-to-value ratio
• Security and longevity of income
• Property specification and compliance
• Borrower experience and financial strength

Loan terms commonly range from 15 to 40 years, with repayment and interest-only options available depending on lender and structure.

Healthcare Practice Mortgage Criteria

We actively manage lender scrutiny around:

• Dependence on NHS versus private income
• Regulatory compliance and CQC registration
• Partnership stability and succession planning
• Suitability of the premises for continued medical use

Practices with strong patient lists, secure contracts, and modern, compliant premises are viewed most favourably by lenders.

How We Add Value

As a whole-of-market commercial mortgage broker, we assist medical professionals and investors by:

• Accessing mainstream and specialist healthcare lenders
• Managing experience and structure-related criteria challenges
• Aligning valuation methodology with lender appetite
• Structuring affordability to maximise sustainable borrowing

A medical practice commercial mortgage provides long-term funding for healthcare premises. When structured correctly, well-established practices with secure income and compliant property can secure highly competitive terms at meaningful leverage.