Commercial Mortgages for Care Homes and Healthcare
This specialist sector allows for leverage against going concern value and requires greater level of analysis as part of any thorough appraisal.
Terms are available for experienced operators with a proven track record, with latest CQC reports forming part of the broker appraisal process.
Terms are available up to 70% against Going Concern Valuation, Specialist Care operators up to 90% of Property Value (assumed alternative use valuation), Supported Living homes to 70% LTV (alternative use valuation). EBITDA multiples are often used here, with terms available up to 5.5x
What’s required for an assessment? Whilst we can often quote on the first call or in response to the initial email with outline terms available, in order to allow a member of the team to fully appraise an enquiry, it is very useful to have the following information available:
- Latest accounts
- Expected Property Value and any indication of going concern value
- Required Loan amount
- Proposed use of funds (i.e. purchase, remortgage)
- Indication of client experience or summary of their CV
- CQC Reports for the last three years (these can be provided at a later stage)
Whilst more information will be needed in due course, the information above will allow an initial appraisal and an indication of financial terms to be outlined.