Development Finance For Care Homes
Raise the finance you need to develop a care home.Speak to one of our experts020 4525 5312
Development Loans For You
- Loans structured for your business
- For new builds and extensions
- Negotiate superior rates with Rangewell
- We'll help polish your application
Finance For Property
- Terms up to 20 years
- £50,000 – No Maximum
- Rates from 2% over base rate
- Up to 80% Loan to Value available
- Answers for all types of challenges
- Solutions tailored to your needs
- Arrangements tailored to your circumstances
- Assets, cashflow, growth capital
Increasing life expectancy means that there is an ageing population - and booming business for the care home sector with demand exceeding supply
Becoming a care home owner is always complex, especially if you plan to develop a care home from scratch or convert an existing property into one. No matter what the origin of the project is, any development work will incur significant expenses that mean you must turn to lenders for support. Rangewell can help you by securing the development finance you need to get your care home up and running.
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Build a care home from the ground up with finance arranged by Rangewell. We specialise in all manner of property funding requirements, with a wealth of expertise in the care industry. From finance to fuel refurbishments and conversions through to ambitious construction projects, make your care home goals a reality with care home development finance. With our support, you can get finance for:
- Developing or converting residential care homes
- Finance for on-site development for facilities such as pharmacies or GP surgeries
- Children’s care home development
- Building specialist care homes
The loans associated with development are distinct from standard commercial loans, so it’s important you know which type of product you need or at least who can help you understand the decision. When planning a development, you’ll need to understand the concepts that govern property development finance such as your capital stack and GDV (gross development value). Click here to learn more.
Rangewell can help anyone planning a care home development project to secure finance more suitable to their goals. Take a look at the scenarios below to see if they reflect your own needs, or get in touch over the phone to talk through your situation.
Land purchases for care home development
Before starting any development, you’ll need an appropriate site to build on. To purchase the land, you’ll need finance – though you’ll need to prove to lenders that your business planning is sound and you can repay it on time.
This can be done through personal guarantees and other types of secured loan, where the lender takes security from your other properties or assets. To reduce the burden of restrictive rates or terms here, you must show how you will add value to the land and create a profitable business once you’ve developed on it.
Alternatively, you can develop the land with utilities, infrastructure and planning permission, then refinance to a better agreement after adding value to the site.
If you’d like to raise finance for land purchases, click here. However, it’s worth continuing down the page to learn more about how you can finance the rest of your care home project.
Finance for care home conversions
If you’re planning to buy an existing property to transform into a care home, you’ll need a bespoke finance offer that allows you to fund the purchase and finance further development work.
Residential properties and ex-commercial units like offices tend to be appealing candidates for development into homes. To secure finance to purchase them at good rates, you’ll need to demonstrate your expertise in care and your plans for the finished project.
It’s worth investing in a forecasting specialist to highlight the potential profitability of any conversion project. This will give the lender more confidence in you and your plans, leading to a better chance to successfully finance you or even issue a superior offer.
If you’re planning to build a care home but it’s your first time doing so, you may find it challenging to secure lender interest. A lack of experience in overseeing a development project can be deemed too risky for many lenders, especially in the niche market that governs care homes.
However, the fact that there will be a tangible asset at completion means some lenders will be willing to offer funds, provided you agree to repay them first and usually accept a higher interest rate.
As with most types of loan, demonstrating your experience and competency can help mitigate risk and increase the value of your offer. If you’ve never worked on development projects before, you may still be able to demonstrate aptitude as a care owner or manager. Having Rangewell on your side to show you how to maximise the impact of this experience can help attract better offers with less restrictive rates.
Finance for outbuildings and on-site development
Developing new facilities or outbuildings on your existing site can be a good avenue for driving profit, but must be planned well ahead of time to ensure you get the necessary planning permission and finance required. Care homes can expand with on-site pharmacies, hair salons, GP practices and more, all of which need finance to build and equip.
Not only can development finance help you accomplish this, you may also need asset finance to help equip your new facility. Asset finance sees loans issued against the value of an asset, with those assets held as security.
Care group expansion and property development loans
Take your care group expansion plans to the next level with finance secured by Rangewell. We help owners expand their portfolios by negotiating the best outcomes with market-leading lenders.
As a care group, the way you structure your finances is important for future growth. While you may already have significant capital to commit to a new project, lenders will expect certain guarantees from named shareholders or owners – so you’ll need to plan your application carefully.
This means creating an engaging business plan, assessing your site and construction plans from a lender’s perspective and doing any work you can to de-risk the investment. The more capital you can contribute, the less hesitant a lender will be and more generous with their rates.
As with all development loans, you’ll only be able to access short-term finance up to 36 months unless you specifically negotiate otherwise.
Understanding property development loans
The care home sector has its own unique requirements such as CQC approval and certain standards for residents but shares many of the same financial elements of other types of property development projects.
As you plan your own care home construction project, you’ll encounter many terms and issues which are shared in the wider development finance world. To make the most of your care plans, equip yourself with the knowledge you need with our property development finance hub, which contains lots of useful guides, case studies and information on the various development finance products you can apply for.
Care home development finance with Rangewell
Whatever situation you’re in, from a manager looking into converting a property into a care home or an experienced owner with a wide portfolio of properties, Rangewell can help you secure the finance you need to move forward with your next project.
Click below to get in touch.
Last update: 10 January 2023
Download Rangewell’s free and detailed guide to Finance for your Care Home
What types of finance are available to Care Homes and business providing residential care?
What is Asset Finance - and how it gives you a business advantage
Can finance help me increase the number of care home places my property offers?
Why not all providers are equal - finding the one that’s right for you
How we can help you pay less than 0%
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