If you are planning to sell your dental practice in the next few years, your most important document isn’t your clinical ledger—it’s your property lease.
We are seeing an increasing number of sales stall at the final hurdle because of the “15-Year Rule.”
The Lender’s Perspective Most major banks providing dental acquisition finance now require a minimum of 15 years remaining on a lease to secure a loan for a buyer. If you have 8, 9, or on occasion, more than 10 years left, the bank may still reject the buyer’s funding application.
The Impact on Your Valuation
- Smaller Buyer Pool: You become restricted to “cash buyers” only.
- Price Chipping: Buyers will use the short lease as leverage to knock thousands off your asking price.
- Completion Delays: Negotiating a lease extension with a landlord can take 6–12 months.
The Jacobs Legal Advice Check your lease today. If you have less than 15 years left, you need to start the extension process before you go to market.