Medical practice property finance has always operated differently from mainstream commercial lending, but 2025 marks a turning point. Specialist lenders, challenger banks, and healthcare-focused divisions of mainstream banks are now offering up to 100% finance for the acquisition, refinancing, or development of GP surgeries, dental practices, pharmacies, and private medical clinics. This shift is driven by structural demand for healthcare services, the strength of NHS-backed income, and the long-term stability associated with medical premises.

Against the backdrop of higher interest rates, increased scrutiny of commercial lending, and evolving criteria across the property sector, medical professionals find themselves in a relatively strong borrowing position. Lenders understand that healthcare properties have lower default risk, strong tenant guarantees, and long-term demand resilience. As a result, full-value funding—once rare—is now accessible for well-structured cases.

Willow Private Finance has observed a significant rise in enquiries from GPs, dental partners, pharmacists, and consultants seeking to buy their premises, expand into larger sites, or refinance to release equity. Many of these clients have previously been told that high loan-to-value commercial lending is not possible. Yet, with the right lender, the right lease structure, and the right packaging, 100% funding is achievable.

This article explains how the 100% finance model works in 2025, why lenders are increasingly comfortable offering it, what type of medical properties qualify, and how to structure your application for the strongest outcome. Throughout the guide, relevant internal insights from Willow’s existing healthcare and commercial finance blogs will be referenced, such as those exploring refinancing strategies and navigating specialist lending.

Market Context in 2025

The UK healthcare property market continues to evolve in response to increased patient numbers, ageing demographics, and shifting expectations around service delivery. GP practices are expanding, dental surgeries are modernising facilities, and pharmacies are diversifying into clinical service provision. These trends have two important consequences for lenders.

First, demand for medical premises is stable and rising. Unlike retail or office space, where usage trends are unpredictable, healthcare facilities remain essential infrastructure. Second, tenant covenants within the sector—particularly when NHS contracts are involved—are seen as exceptionally strong. A GP practice with a long-term NHS lease, or a pharmacy operating under a stable NHS dispensing contract, carries risk characteristics completely unlike typical commercial tenants.

For lenders, this stability translates into predictable income streams, resilient valuations, and reduced long-term exposure. As a result, banks can justify lending at much higher LTVs than other commercial sectors, including up to 100% for selected borrowers.

Another important dynamic in 2025 is the broader recalibration of commercial lending. While many lenders have tightened borrowing for sectors such as hospitality, retail, and leisure, they have redirected capital towards essential services—healthcare at the forefront. Loan performance data from the past decade reinforces this approach, with medical properties showing significantly lower arrears and default rates.

How 100% Medical Practice Finance Works

Full-value funding for medical premises typically relies on one or more structural factors that significantly reduce lender risk. Unlike conventional commercial finance, where a 60–75% LTV is standard, medical professionals can access higher leverage because of:

1. Strong Operational Cashflow

Medical practices—GP surgeries, dental practices, private clinics, and pharmacies—generate predictable, recurring income. This stability provides lenders with confidence that repayments will be maintained without undue volatility.

2. NHS Covenant Strength

Where NHS lease income or contract-backed cashflow exists, lenders view the tenancy as “quasi-government backed”. This materially changes the underwriting position. Long-term income security acts as a powerful risk mitigator, enabling higher lending ratios.

3. Goodwill Valuation

Medical practices often have significant goodwill value beyond physical property. In certain lending models, goodwill can be leveraged alongside the building to justify 100% funding. This is especially relevant for dental practices and pharmacies, where goodwill can represent a substantial proportion of total business value.

4. Additional Security Structures

Lenders may structure the loan using:

• Debentures over the business
• Charges over NHS income
• Cross-collateralisation with secondary assets
• Personal guarantees (typically limited)

These mechanisms allow lenders to reach full property value lending without increasing risk exposure.

5. Professional Profile of Borrowers

Lenders are highly comfortable lending to medical professionals. Default risk among healthcare borrowers is materially lower than across other commercial sectors due to stable income and strong professional standing. This borrower profile supports enhanced loan terms.

What Lenders Are Looking For in 2025

Despite offering up to 100% finance, lenders maintain strict due diligence. Medical professionals benefit from lender appetite, but approval depends on meeting key criteria.

Financial Performance and Stability

Lenders assess historic performance, cashflow consistency, patient numbers, and service mix. They also evaluate the percentage of NHS vs. private income. Even for full-value lending, profitability must be stable.

Quality of Lease or Occupation Structure

For GP and pharmacy premises, a long-term NHS lease materially strengthens the case. Dental practices benefit from strong associate retention, clear service mix, and patient growth trends.

Valuation and Market Comparables

Commercial valuers familiar with healthcare markets provide assessments based on income security, local competition, and market demand. Lenders prefer properties with strong alternative-use value, although this is secondary to healthcare covenant strength.

Experience and Management Capability

First-time practice buyers can still access 100% finance, but lenders will review qualifications, experience, and transition plans. Established practitioners can benefit from significantly faster underwriting.

Challenges Borrowers Face

Even with increased lender appetite, medical borrowers often face obstacles:

Misconceptions About 100% Finance

Many assume full-value lending is impossible. This misconception stems from general commercial lending practices, not healthcare-specific criteria. As a result, many professionals unnecessarily delay purchasing or refinancing their premises.

Complex Application Packaging

Medical property finance requires specialist packaging. Generalist brokers frequently misunderstand the sector, resulting in failed applications or suboptimal terms. Lenders expect a precise and detailed financial case, including business plans, service mix analysis, and NHS contract documentation.

Timing Around NHS Contracts and Partner Changes

When buying into a partnership or acquiring premises linked to NHS income, timing is critical. Delays in contract transfer, partnership agreements, or CQC approvals can impede finance.

Valuation Discrepancies

Different lenders assess medical properties using different approaches—some prioritise income, others goodwill, others bricks-and-mortar. Selecting the wrong lender can lead to shortfalls or avoidable declines.

Smart Strategies and Solutions

Medical professionals achieve the best outcomes when they structure their case strategically. Willow Private Finance frequently helps clients:

Structure Applications Around Income Strength

Positioning NHS-backed income as the central risk mitigator significantly enhances leverage potential. For private dental or consultant-led practices, highlighting subscription-based income or recurring service revenue strengthens the case.

Use Goodwill to Support Higher Leverage

Where the practice has strong goodwill valuation, Willow can direct borrowers to lenders who allow goodwill to form part of the security structure—supporting true 100% finance.

Refinance to Release Capital

Many medical professionals refinance to 100% LTV equivalent levels to release capital for expansion, partner buy-ins, or secondary site acquisition. With the right structure, this can be achieved while keeping monthly costs manageable.

Align Timing with Partnership or NHS Contract Changes

Coordinating finance with operational changes, such as new partners or NHS commissioning adjustments, avoids delays and supports smoother approvals.

For additional context on refinancing and releasing equity for business growth, you may find our article Why Remortgaging Remains a Strategic Move in 2025 (https://www.willowprivatefinance.co.uk/5-strategic-reasons-to-remortgage-in-2025-beyond-just-rate-drops) useful.

Hyperthetical Example: How 100% Funding Is Achieved

Consider a generalised scenario. A three-partner GP surgery operating under a long-term NHS lease seeks to acquire its premises. The valuation is £1.2 million. The partners want to borrow the full amount, plus additional funds for refurbishment.

A specialist healthcare lender assesses:

• NHS lease length
• Historical practice profitability
• Future commissioning strategy
• Building suitability for medical use
• Sustainability of existing patient numbers

Because the NHS covenant provides exceptional security, the lender is comfortable offering 100% funding for the acquisition, plus an additional facility for refurbishment, using a mix of first charge, debenture, and NHS income assignment.

This general model applies across many GP, pharmacy, dental, and consultant-led cases in 2025.

Outlook for 2025 and Beyond

The healthcare sector is one of the most resilient parts of the commercial property market. Demand for medical premises is rising, government investment in community care continues, and private medical spending is increasing. Lenders understand this dynamic and are expected to continue offering high-LTV and 100% funding options throughout 2025 and beyond.

As more practices seek to acquire premises, expand services, or upgrade facilities, specialist lenders will remain competitive. Borrowers who package their applications professionally—supported by a broker with sector expertise—will continue to access market-leading terms.

How Willow Private Finance Can Help

Willow Private Finance specialises in structuring complex medical property finance across GP surgeries, dental practices, pharmacies, private clinics, and consultant-led facilities. We work with every major healthcare lender in the UK, including specialist divisions and private banks, enabling medical professionals to access 100% funding, development finance, equity release, and partner buy-in lending.

Our expertise in NHS covenant structures, goodwill valuation, debentures, and commercial underwriting ensures applications are packaged to the highest standard—significantly improving approval prospects and securing optimal terms.

Frequently Asked Questions

Q1: Can I really get 100% finance for a medical practice property in 2025?
A: Yes. Many specialist lenders offer 100% funding for GP surgeries, dental practices, pharmacies, and consultant-led premises, depending on income strength and NHS contracts.

Q2: Do lenders treat NHS income differently from private income?
A: Yes. NHS-backed income is considered very secure, which supports higher LTVs including 100% finance. Private income is acceptable but usually requires stronger financials.

Q3: Do I need experience to buy my first medical premises?
A: First-time buyers can still access high-LTV lending, but lenders typically require qualifications, business plans, and evidence of stable patient or revenue streams.

Q4: Can I borrow for refurbishment as well as acquisition?
A: Many lenders offer additional borrowing for fit-out, upgrades, or extensions, even on 100% acquisition loans, depending on valuation and cashflow.



Q5: Is goodwill considered in the lending decision?
A: Yes. Goodwill plays a major role for dental practices and pharmacies and can support higher lending ratios.

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