Need finance for a Care Home purchase or commercial development of one and been turned down or told to wait for 6 months for it?
Need finance for a Care Home purchase or commercial development of one and been turned down or told to wait for 6 months for it?Major Banks often take six months to a year to make up their minds on commercial projects. If you don’t have that amount of time to buy or redevelop your Nursing Home we can help but you will need to know what your doing and have the funds and a business plan to support your goal.
The demographics suggest that more and more people in the UK will be reliant on residential nursing home care and therefore purchasing a nursing home can be a very lucrative investment.
Depending on the size of the nursing home and your resources you may require finance to support the property purchase and for conversion to the required standard and that’s where our expertise comes in.
It could be your intention to run the nursing home or indeed simply let it to an established organisation. If you plan to run the practice then prior experience as either an employed manager or owner is likely to be essential.
Most nursing home lenders will require a 25% to 35% deposit for a straight purchase but we also have other lenders at our disposal that could look at other assets for security and therefore the deposit might not need to be as much.
A well run nursing home will offer regular and sustainable income. As this is spread across multiple patients the risk of complete voids are limited and depending on your terms you could collect the rent weekly to help your cash-flow.
I speak to many landlords who originally started off with a plain buy to let and have progressed through houses in multiple occupancy (HMOs) to the residential care arena as they look to maximise the income.
We have also financed a number of Care Home conversion projects where the funds were used for the place to be converted into self-contained flats.
For more information on financing a Nursing Home Purchase please contact 020 7993 2044 or alternatively complete the enquiry form on this page.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.
