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Buying a pharmacy in London

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  • Buying a pharmacy in London

    Dear All

    I have been pharmacy manager in an independent pharmacy for the last 4 years. Therefore I have a general idea of expenditure and costs. However as I am a first time buyer there are some areas I am not 100% sure about.

    Currently property owner of 2 properties.

    Can withdraw approximately 150K from equity from the properties (as both properties are due for remortgage and should not be any problem)
    Is this the best course of action with regards to obtaining deposit for finance?

    As I mentioned I am a first time buyer and I ‘d like to know in order to make the pharmacy purchase worthwhile and make sure it is a safe investment (considering the large amount of deposit and also paying back the monthly repayment of finance), I would appreciate it if you can tell me what are the most important pieces of information I need to know about:


    1)what turn over or net profit does the pharmacy need to be doing, In order to have a decent income?

    2)duration of lease?

    3)what do i need to look for in the balance sheets? Or end of month NHS statements?

    4)Location: London (preferably North/North west London)

    5)Considering the cuts, is it the right time to buy?

    6)What will be main challenges or things I need to know as a first time buyer?

    7)Been registered with some agents, and the information they provide me is: balance sheets, FP3 NHS end of the month statements.
    What information do I need to look for? Or be sure about?

    Location: London (preferably North/North west London)

    Or if there are any other factors you can think of.

    Thanks a lot

  • #2
    Hi Amy, I am also a first timer cosidering to purchase a pharmacy in the not so distant future.

    With regards to financing, this article is a great read: (part1) (part 2) (part 3)

    there are futher parts but these are most most relevent for now

    Most leases are offered for 10-15 years, I would stay away anythng less.

    Is it the right time to buy? With the impending cuts and no more info about additional funding becoming available, probably not. BUT its all about buying at the right price.


    • #3
      Hi Amy

      1. What do you call a decent income?
      3. Loads. Lot there between the lines as it were. Won't ellaborate, as best explained with an FP34 in front of you.
      5. No crystal ball. You decide.
      6. No assistance from wholesalers from what I understand, so you will need 6 weeks worth of costs in the bank as your first NHS cheque will be small and delayed.
      7. As I said earlier, need to look at examples to properly demonstrate.

      Simple consideration. You will draw £150k to help with the funding from equity. Presumably you have factored in loan repayment?

      You can PM me with more detailed questions if you want.