Not necessarily. In most cases, there will be an unsecured option available to you as a buyer when seeking bank funding. However, using a property as security can be an effective way to reduce your cash input on a contribution.
Theoretically, an NHS practice worth £750K would require a 20% contribution of £150,000. Hypothetically, if the buyer has £75,000 in cash available (10%) but also has a property with lending value of £75,000 (10%), the two can be combined to form a 20% contribution overall and fit the banks’ lending criteria. Having a reduced cash contribution can be a great way to allow for future improvements in the practice, improve cash flow, or to even help preserve your funds for your next acquisition.