Buying a Post Office

Remuneration is the floor

Unlike any other shop, a post office carries contractual income from the Post Office itself. Ask for two years of remuneration statements: this stable base is what lenders anchor to, and it is verified directly rather than taken on trust.

The retail on top

Counter footfall feeds the retail side — cards, stationery, convenience lines, bill payments. Analyse the retail till data separately from counter transactions so you can see both businesses clearly: the one that pays the rent and the one that makes the profit.

Branch terms and relocation risk

• —The exact branch agreement and its remuneration basis
• —Any proposed network changes or relocation plans for the branch
• —Premises arrangements — who owns or leases the building the branch sits in

Funding the purchase

Typically a goodwill-plus-retail term loan with deposits ranging from 5% to 30%, with remuneration statements doing the heavy lifting in the lender's assessment. Village stores with post offices are often sold freehold — commercial mortgages apply as with any retail property.

Post Office acquisitions benefit from the contracted Post Office income alongside retail trade — two income streams that together make a stronger funding case than either would alone. Lenders consider deposits ranging from 5% to 30%, with specialist lenders assessing the Post Office contract value, retail turnover, and lease quality when structuring the funding.

If you are ready to look at funding for a specific purchase, read more about Post Offices acquisition finance and loans, including how lenders assess these deals and the areas we cover.