When you’re selling a dental practice, it’s easy to focus on the big-ticket items — patients, revenue, equipment, and goodwill. But there’s one piece that often causes unexpected headaches: the lease.

Lease issues don’t usually kill a deal outright — but they can slow things down, reduce buyer confidence, or even chip away at your final sale price. Knowing what to look out for ahead of time can make the whole process far smoother.

1. “How Long Is Left on the Lease?”
This is often one of the very first questions a buyer (or their bank) will ask. If there’s only a short time left on the lease, alarm bells can ring quickly.

Most buyers want at least five years’ certainty, including renewal rights. If the remaining term is too short, banks may hesitate to lend, and buyers may ask for a lease extension before they proceed.

Bottom line: If your lease is nearing the end, it’s worth talking to your landlord early — ideally before your practice goes on the market.

2. Landlord Consent Can Take Longer Than Expected
In most dental practice sales, the lease is assigned to the buyer, which means the landlord needs to approve the new tenant. While this is standard, the process isn’t always quick or straightforward.

Some leases give landlords a lot of discretion, and delays can happen if consent conditions aren’t clear or responses are slow.

Bottom line: A heads-up conversation with your landlord early on can save weeks — sometimes months — later.

3. Personal Guarantees Don’t Always End Automatically
Many practice owners are surprised to learn that even after selling, they may still be personally guaranteeing the lease.

Some landlords will try to keep the outgoing owner “on the hook” just in case something goes wrong with the new tenant.

Bottom line: Make sure your legal advisor checks that your personal guarantees are fully released once the lease is assigned.

4. Rent Reviews Can Spook Buyers
If a market rent review is coming up soon after settlement, buyers will notice — and they’ll worry about it. A potential jump in rent can impact how affordable the practice looks on paper.

Bottom line: Be upfront about upcoming rent reviews and, where possible, resolve them before going to market.

5. Tight Use Clauses Limit Buyer Options
Some leases restrict the practice to very specific services, such as “general dentistry only.” That can be a problem for buyers who want to introduce specialist services, hygiene clinics, or expand in the future.

Bottom line: Flexibility is attractive to buyers. If your use clause is too narrow, it may be worth discussing changes with the landlord.

6. Fit-Out and Make-Good Costs Can Be a Surprise
Dental fit-outs are expensive, and confusion around who owns what — and what needs to be removed at lease end — can create friction.

Make-good clauses that require the space to be stripped back to bare walls can represent a significant future cost for buyers.

Bottom line: Clarity here helps buyers feel confident and reduces last-minute negotiations.

7. The Landlord’s Attitude Matters More Than You Think
A supportive landlord can help a sale progress smoothly. An unresponsive one can cause frustration and delays that test everyone’s patience.

Bottom line: Early communication sets the tone and often leads to faster approvals.

8. Head Lease and Sub Lease
We’ve seen a number of instances where the premises are held under a Head Lease by another party, and the dental practice operates under a Sub Lease. This can create complications if the two leases don’t align — particularly when it comes to renewal dates, assignment rights, or landlord consent.

If the Head Lease expires earlier than the Sub Lease, the buyer may have no certainty they can remain in the premises, regardless of what the Sub Lease says.

Bottom line: Ensure the renewal dates are aligned, and always review a copy of the signed and dated Head Lease, not just the Sub Lease.

Lease issues are one of the most common reasons dental practice sales slow down — but they’re also one of the easiest to manage if addressed early. Taking the time to review your lease, speak with your landlord, and get the right advice before going to market can protect your sale price and help ensure a smoother handover for everyone involved.

Make sure you talk about your lease with our licensed real estate agent, Jeremy Craw, to minimise any surprises when selling.