Care Home Finance

We have close links with all the specialist care home funders to cater for the majority of customers' borrowing requirements.

Finance for Carehomes and Nursing Homes

Care Home Finance for the purchase of care homes, whether it is for residential care for the elderly, dementia, nursing, nursing with dementia, domiciliary, specialist head injury or any other type of care, requires a specialist care home lender. We have close links with all the specialists funders to cater for the majority of customers' borrowing requirements.

Finding the right finance for care home purchases can be a challenge. We know what the lenders are looking for when considering applications for finance and are experienced and able to put together applications for care home finance confident in the knowledge that the application will have a good chance of being approved. Where we believe the application will struggle to get finance we will advise clients accordingly. That way you will not incur unnecessary costs. Finance can be arranged with a variety of repayment periods and we are able to negotiate on borrowing levels.

Are you :-

  • A registered care home owner?
  • A carer wishing to purchase your own care home?
  • An established care home wishing to finance an expansion?
  • A care home manager looking to buy out a partner?
  • A new or established care home requiring finance for new equipment?
  • A care home looking for practice funding?
  • A care home looking for help in paying Inland Revenue arrears?
  • A care home disillusioned with your current financial lender?
  • An existing care home owner looking to purchase another care home?

Then we would like to hear from you.

Our healthcare division is run by an ex specialist healthcare banker with over 20 years experience working for one of the major specialist healthcare lenders looking after care home owners/managers and other healthcare professionals just like you.

We have many contacts with the major banks together with specialist niche healthcare lenders, and we know the types of deals that are synonymous with this sector.

The amount of funding available will as always depend on serviceability, experience in the care home sector, level of contribution (we can arrange funding using current care homes to gear up against) and valuation among other things. We have good relationships with both local and national care home valuers and this gives us an insight to changes in care home values, incomes and potential levels of bank funding.

Possible care home funding needs include:

  • Property Acquisition
  • Property Refinance
  • Purchase of care home or multiple care homes
  • Refurbishment
  • Business / Goodwill Acquisitions
  • Business Expansions
  • Partner Buyouts
  • Fixtures and Fittings / Refurbishment
  • Practice Loans

You can be confident that we will source an appropriate funding structure for you.

We have had some notable successes obtaining care home funding and finance packages, a few examples of which are described below. To see more examples, as well as our successes in other areas of the healthcare industry, take a look at our healthcare funding case studies.

So if you are looking to finance the purchase of a care home or perhaps purchasing another care home, give us a call on 08444 144371 or use our online enquiry form on the right-hand side of the page.

Care Home Finance Case Studies

Single Care Home Purchase - £946k

We were approached to assist with the purchase of a 19 bed residential care home in the South East. The cost was £946,000 with a funding requirement of £615,000 at 65% LTV.

The potential buyers were a partnership, with one partner experienced in the care home sector but not hands on; the other no experience. However, relatives and friends who were experienced in the care home sector could provide hands on help. The experienced care home manager was to stay on indefinitely, and there were good care standards reports, along with high occupancy levels and fees.

This was a challenge as the property was not fully compliant and had under 20 beds. However, funding over 15 years was approved, taking note of partners involvement in the care sector and cash contribution, together with the background of support and the existing experienced care home manager in place.

Purchase Second Care Home - £1.3m

We were introduced to a client looking for care home funding in the Midlands. The current owners already had a 26 bed residential care home and were to purchase a second residential care home of 19 beds in the outskirts of the same city and a relatively short drive away.

Some refinancing was required and gearing up against the current care home.

Both homes had high occupancy levels, good relationships with social services and good care standards reviews. As a result, total funding of £1.3m was approved.

Purchase Second Care Home - £1.35m

We arranged care home funding to enable a residential care home owner that had 19 beds to purchase a second residential care home of 31 beds.

Both homes were compliant with good care standards reports and very high occupancy levels. Revenue and profitability levels at the current residential care home were good but low target.

The combined value of both care homes was circa £2m, with the funding requirement £1.35m.

Although a challenge to obtain, the current care home owner's experience, along with that of both care home managers (who were both to remain in place), gave comfort to lenders and the funding was approved.