Pharmacies play a crucial role in community healthcare, and in 2025 their importance continues to grow. Rising demand for medication, the increasing shift toward pharmacy-led clinical services, and changes in NHS commissioning have positioned pharmacies at the centre of primary care delivery. This essential role has also transformed the way lenders view pharmacy property finance. Where banks once treated pharmacies like any other commercial business, today they are regarded as one of the most stable and secure sectors in healthcare lending.

As a result, lenders are increasingly comfortable providing high loan-to-value packages, including 100% finance, for pharmacy premises, acquisitions of freeholds, refinancing, and refitting for new clinical service models. Pharmacists who understand this shift are leveraging it to take ownership of their premises, expand their operations, consolidate debt, or invest in upgrading facilities.

Willow Private Finance has seen growing demand from pharmacists seeking full-value lending, particularly those operating under long-established NHS contracts. Many pharmacists tell us they were previously informed by high-street banks or non-specialist brokers that 100% lending was not viable. In reality, pharmacy lending appetite has strengthened significantly in recent years, with specialist banks offering some of the most competitive terms across the entire commercial lending market.

For broader context on why healthcare businesses can achieve unusually high LTVs, you may find value in our article Medical Practice Property Finance in 2025: How 100% Funding Works. For short-term route options, particularly where acquisitions or expansions require interim capital, our guide Short-Term Property Finance in 2025 is also relevant.

This article focuses specifically on pharmacy lending: how 100% finance works, what lenders analyse, what challenges borrowers face, and how Willow Private Finance structures pharmacy applications for the strongest outcome.

Market Context in 2025

Pharmacies have undergone significant transformation in the past decade. What was once a primarily dispensing-based business has become a hybrid clinical hub, offering vaccinations, minor ailment consultations, health checks, and a growing range of NHS and private services. This evolution has strengthened the commercial and clinical importance of pharmacies within community healthcare.

In 2025, this changing role directly impacts lender behaviour. Banks recognise that pharmacies benefit from a combination of secure NHS-backed revenue, recurring customer demand, and expanding service pathways. Dispensing volume remains a cornerstone of stability, but clinical services are increasingly creating new, predictable income streams that improve profitability and reduce volatility.

As a result, pharmacies now rank among the lowest-risk sectors in healthcare lending. Lenders who once hesitated to exceed 70% LTV are now routinely offering 85–100% finance, depending on the strength of the NHS contract, local prescription volume, and the operational history of the business. Specialist healthcare divisions within mainstream banks continue to expand their lending allocations, and challenger banks are competing aggressively for pharmacy mortgage business.

This favourable environment has encouraged increasing numbers of pharmacists to acquire their premises, move from leasehold to freehold, or refinance to release equity for growth. With strong ongoing demand for prescription services and an expanding role in primary care, pharmacies remain well positioned for high-LTV borrowing across 2025 and beyond.

How 100% Pharmacy Finance Works

Full-value funding for pharmacy premises is grounded in the same principles that support high-LTV lending across healthcare, but pharmacies benefit from several distinct advantages. One of the most significant is the NHS dispensing contract, which provides a stable, recurring revenue stream. Lenders treat this contract as one of the strongest commercial covenants available in the UK, offering reassurance that cashflow will remain reliable over the long term.

Another key factor is the consistency of demand. Pharmacies experience predictable prescription volume, often linked to population demographics, GP proximity, and long-term medication cycles. This stability reinforces lender confidence and reduces concerns around fluctuating revenue. In pharmacies with strong locations—especially next to GP surgeries or within busy community areas—demand patterns are exceptionally stable.

Goodwill is also a major component of pharmacy valuation. Pharmacies frequently hold significant goodwill value beyond the physical premises, driven by the strength of patient relationships, prescription volume, and service provision. Lenders often leverage goodwill as an additional layer of security, enabling borrowing at higher loan-to-value ratios than property value alone would support.

Operational continuity further strengthens the lending proposition. Many pharmacies have long-standing trading histories and well-established reputations within their communities. This reduces lender concerns about business resilience, providing another reason why full-value funding is increasingly achievable.

What Lenders Are Looking For

Pharmacy lending is driven by clear, data-led assessment criteria that focus on operational stability, revenue consistency, and valuation quality. The first element lenders analyse is the pharmacy’s financial performance. They review accounts across several years to assess dispensing revenue, private service income, over-the-counter sales, gross profit margin, and overall profitability. Pharmacies with steady or rising dispensing volume generally secure the most favourable lending terms.

Location is another important consideration. Pharmacies connected to GP surgeries, high-density residential areas, or established retail parades often enjoy higher prescription volume and footfall. Lenders analyse this context as part of their risk assessment. Even pharmacies in more isolated areas remain attractive if they hold strong dispensing contracts and demonstrate consistent patient usage.

Lenders also review the NHS contract and associated service mix. Stability in core services—dispensing, EPS activity, vaccination programmes, and additional NHS-funded services—reinforces lender comfort. Practices offering diversified revenue through private services, such as travel clinics or health consultations, often strengthen their borrowing position.

Premises suitability is part of the evaluation as well. Lenders want reassurance that the building is compliant with pharmacy regulatory standards and capable of supporting service delivery over the long term. Where refurbishments or upgrades are needed, lenders are often willing to include improvement funding within the same facility, particularly when the upgrades improve operational capacity or align with NHS service expansion.

Finally, lender attention also falls on the professional background of the borrower. Pharmacists with strong experience, a stable trading history, and clear business planning typically gain the highest approval rates for 100% finance.

Challenges Pharmacists Face

Although lender appetite is strong, pharmacists still encounter specific challenges when seeking high-LTV or full-value finance. One of the most common is the complexity of interpreting pharmacy accounts. Revenue streams from dispensing, clinical services, over-the-counter sales, and NHS claims require specialist knowledge to assess accurately. Generalist lenders and brokers may misinterpret these figures, leading to reduced borrowing potential or avoidable declines.

Another challenge involves valuation. Pharmacies require experienced valuers who understand goodwill, footfall, prescription volume, and service delivery patterns. Inexperienced valuers may undervalue the business or fail to correctly assess future trading potential, resulting in lower loan amounts. Willow frequently assists clients by ensuring valuations are performed by specialists with deep sector knowledge.

Business structure can also be a barrier. Many pharmacies operate through limited companies with complex shareholder arrangements, or they may involve multiple working and non-working partners. Clarity around roles, profit distribution, and operational responsibility is essential for presenting a strong lending case.

Timing issues arise as well, particularly when pharmacy acquisitions coincide with NHS contract transfers, changes to ownership structures, or the introduction of new clinical services. These transitions must be carefully planned to avoid generating conflicting or incomplete information for lenders.

Smart Strategies and Solutions

Pharmacists who approach the lending process strategically are best positioned to secure 100% finance. One of the most effective strategies is presenting the business narrative clearly and professionally. Lenders respond strongly when applications demonstrate consistent prescription volume, diversified service income, and a stable financial base.

Including future plans can also be powerful. Pharmacies that outline expansion into clinical services, proposed refurbishment, or increased service delivery often create greater confidence, as lenders see a clear path for revenue enhancement. When carefully presented, these plans can support both acquisition and improvement funding within the same high-LTV facility.

Leveraging goodwill is another key strategy. Pharmacy goodwill, when supported by strong revenue and operational continuity, can justify full-value borrowing even when property valuation alone would not reach 100% lending. Willow Private Finance specialises in presenting valuation and goodwill evidence in a way that aligns with healthcare lender expectations.

It is also helpful to align finance with regulatory certainty. Ensuring NHS contract documentation, EPS activity, and compliance information are fully up to date will prevent avoidable delays during underwriting. A well-structured financial package that captures trading stability, professional capability, and operational resilience significantly increases the likelihood of full-value funding.

Hypothetical Scenario: How 100% Funding Is Achieved

A typical high-LTV lending scenario may involve a pharmacist purchasing their long-established community pharmacy, which has been trading under a strong NHS dispensing contract for over a decade. The premises are valued at £950,000, and the business generates consistent dispensing volume along with growing private service income. A specialist healthcare lender examines financial performance, reviews prescription data, assesses location sustainability, and evaluates the premises for long-term suitability.

Because the business shows stable revenue, strong goodwill, and reliable operational continuity, the lender offers 100% finance for the acquisition. In many cases, they are also willing to provide additional funding to modernise the dispensary, upgrade clinical consultation rooms, or invest in automation equipment. The facility is structured on a long-term amortising basis, with security based primarily on the property, the goodwill valuation, and the strength of the NHS contract.

Outlook for 2025 and Beyond

The outlook for pharmacy lending remains exceptionally strong. As pharmacies take on a growing share of clinical service delivery and community health obligations, lenders view the sector as one of the safest and most strategically important areas of healthcare finance. In 2025, full-value funding is likely to remain available for stable, well-run pharmacies, supported by strong NHS income and consistent patient demand.

As private clinical services expand and pharmacies continue modernising, lenders are expected to maintain or even increase their appetite for high-LTV lending. Pharmacists who secure their premises now benefit from long-term control, stability, and the opportunity to increase operational capacity through ownership.

How Willow Private Finance Can Help

Willow Private Finance specialises in structuring full-value commercial finance for pharmacies, combining our deep sector knowledge with access to every major healthcare lender in the UK. We understand the complexities of pharmacy cashflow, NHS contracts, goodwill valuation, and professional requirements, and we package applications in a way that maximises lender confidence.

Whether you are acquiring your premises, refinancing for better terms, funding refurbishment, supporting business expansion, or considering a multi-site strategy, we ensure your financial case is presented clearly, professionally, and strategically. Our whole-of-market approach allows us to secure high-LTV and 100% finance for pharmacists across the UK.

Frequently Asked Questions

Q1: Is 100% finance truly possible for pharmacies in 2025?
Yes. Many specialist lenders are prepared to offer full-value lending for pharmacies with strong financial performance and stable NHS-backed income.

Q2: How important is the NHS dispensing contract in lending decisions?
The NHS contract is one of the strongest risk mitigators for lenders and plays a major role in supporting high-LTV or 100% loans.

Q3: Can goodwill help increase the amount I can borrow?
Yes. Pharmacy goodwill often forms a significant part of the lending structure and can justify borrowing above the property value alone.

Q4: Will lenders fund improvements and refurbishment?
Many lenders are willing to include funding for dispensary upgrades, automation, clinical room improvements, and expansion as part of the same loan.



Q5: What information do lenders usually request?
Financial accounts, NHS contract details, prescription data, business structure information, and property documents are typically required.

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