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Should I tie myself down by buying into practice?

Practice Q&As

You have three priorities. Is the package financially attractive? Is the building worth the investment? Can you recover your share in a reasonable time on leaving?

From a financial viewpoint you need extra information, including the current rent reimbursement, the next rent review date, loan repayments at current interest rates and whether there a competitive fixed-interest option without early-redemption penalty.

Tax relief at your highest rate applies to your loan interest payments. With these figures, calculate the net monthly cost, with your accountant's help if necessary. This may be around £100-£150 a month, although as rent reimbursement rises over the years you should be into a net monthly profit within five-seven years and benefit from any capital growth in property value.

Remember the costs of buying in too. These include valuation, loan arrangement and solicitor's fees plus stamp duty. Allow around £3,000.

Consider your building: it should be in good repair and readily saleable if the practice has to move or end. In terms of selling, if you think you may leave after a few years, you must check the practice agreement. If there is no clause then discuss this with your partners.

Think also how you will fit in to the partnership over the longer-term if you don't buy in.

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