Financing a £450,000 Purchase To Help Care Home Manager Become Owner

By Rose Brown
Content writer
Published: 30 November 20221 minute read
Financing a £450,000 Purchase To Help Care Home Manager Become Owner

Despite the authority, expertise and skillset possessed by a care manager, taking your next step into ownership can feel overwhelming due to financial burdens. See how a recent Rangewell client managed to overcome their hesitation and secure the finance they needed to become care home owners in this case study.

Table of Contents

Care home managers are typically responsible for all of the most senior tasks within a care home, including recruiting staff, securing occupancy and building relationships. Despite all of this hard work, many are left feeling disconnected from the business as they have no ownership stake. 

Stepping up into an ownership role is all about finances – can you afford to purchase a care home, and will lenders view your care record as sufficient enough to support financing you with a care home mortgage? For a recent client who approached Rangewell for help, they had a strong resume in care and had acted in senior roles for years – but lacked the finances needed to make a purchase. 

However, after spotting a smaller care home for sale nearby, which was well-priced and would be easier to manage than their existing home, the client knew they couldn’t let the opportunity pass them by. 

Why was there a problem?

The client was a care home manager with many years of experience in the role, demonstrating a deep knowledge of care home operations. They lacked the care home funding needed to secure a mortgage on any care property, so had given up on their aspiration until they’d saved the necessary capital. 

However, when a nearby listing became available, the manager approached Rangewell to see if we could help them. Considering they currently managed a 31 bed property and the nearby listing was for 21 beds, the owner knew they could not only manage the property but grow it too. 

Unfortunately, the general lending market doesn’t look favourably on any applicant that has not already demonstrated ownership credentials. Securing a large loan when you have never owned commercial premises can be challenging without help. Luckily the client had approached us, so we helped them plan their application to impress lenders and secure funds.

How we were able to help

We’re specialists in care home lending, with strong relationships in place across our network. That means we can quickly match applicants to the most supportive lenders, which in this case was critical to the client’s success. We helped them identify a lender willing to take their care home management experience into account and also guided them through submitting a business plan that demonstrated their competency. 

The preparation we helped them go through meant the client could secure an offer for £400,000, secured against personal assets. This loan meant the client could make a bid on the nearby care home. 

However, when their existing owner realised the manager wanted to leave and become an owner, they offered to sell the home the manager worked at to them to fund the owner’s retirement. This property was larger and more expensive, so the client came back to Rangewell, and we helped renegotiate for a more sizeable loan with the lender. 

In summary, we helped them fund the purchase of a care home they already knew inside and out, going from manager to owner with a loan valued at over £450,000. 

Become an owner with Rangewell’s support

While you’ll always need some form of cash deposit to fund ownership, the rest of the financial arrangement depends on which lender you choose, your own experience and how you structure your application. In all of those things, Rangewell can help you maximise your funding. 

Our team are experts in financing care homes, from developing new ones from the ground up to aiding managers just like you in becoming first-time owners. We’ll work with you to identify lenders who understand the care home industry, can take your experience into account and issue the finances you need to become an owner. 

If you’re a care home manager who wants to become an owner, get in touch with our team today to see how you can raise the finance you need to make your goal a reality. 

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