STEP 1: Prepare & Research

Define Your Requirements

Begin by assessing the size, layout, and type of property your care home requires. Consider specialist adaptations for residents, as well as accommodation for staff if required? This groundwork informs your property search and ensures you only pursue viable opportunities.

 

Buy or Lease?

Each route offers advantages:

• Buying:
  Many care home operators prefer freehold ownership, as the premises form the foundation of the business. Ownership also avoids the limitations imposed by landlords, particularly around alterations or specialist use. Securing a commercial mortgage requires early conversations with lenders or brokers.

• Leasing:
  If renting, factor in whether the property needs alterations and whether the landlord will permit them. Initial negotiations will establish key lease terms, forming the basis for the full legal documentation.

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Budgeting

Consider your full financial commitment, including mortgage payments or rent, business rates, utilities, service charges, and any VAT payable on rent.

 

Property Sourcing

Register with both commercial agents and dedicated care home sales specialists. This ensures you receive early notice of suitable premises and trading care homes coming to market.

 

STEP 2: Property Investigations

Legal Checks & Searches

Once a property is identified, your lawyer will conduct essential searches to confirm:

• Planning consent for care home use

• Whether nearby developments could impact your operations

• Listed-building status

• Environmental risks such as contamination

• Utility connections

• Any legal rights, easements, or covenants affecting the property

 

Restrictive Covenants

Your legal team will investigate restrictions that may prevent the property from being used as a care home, such as limitations on business use or caps on residential occupancy.

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Report on Title or Lease

A comprehensive report will outline all findings, highlight risks, and recommend solutions so you can make an informed decision.

 

Fixtures & Fittings

Clarify what is included in the sale or lease. Ensure all agreements with the owner or landlord are documented in writing.

 

STEP 3: Care Quality Commission (CQC) Requirements

Registration

If launching a new service, you must register with the CQC. This process can take over three months, so timing is critical.
If acquiring an existing care home, transferring the seller’s registration can take a similar amount of time.

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Review CQC Inspection Reports

When taking over an existing operation, review recent CQC reports to understand compliance status and any outstanding actions.

 

STEP 4: Financing

Commercial Mortgages

Most buyers will require commercial finance. Lenders typically request a deposit, a full business review, and may require:

• A legal report on the property

• A mortgage over the freehold or lease (often needing a minimum unexpired term of 15 years)

• Additional security such as personal guarantees

 

Financial Information

Prepare detailed accounts, forecasts, and business plans to support your application.

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Valuations & Surveys

Your lender will commission a valuation. We strongly recommend arranging an independent full survey to understand the building’s condition and future maintenance needs.

 

STEP 5: Exchange of Contracts

When all legal checks, lender requirements, and due-diligence steps are complete—and you are satisfied with the property—your lawyer will arrange exchange of contracts. A completion date is then fixed.
For some transactions, exchange and completion may occur on the same day.

 

Deposit

If purchasing, your deposit will typically be transferred to your solicitor at this stage.

 

STEP 6: Completion & Move-In

Final Payments

Ensure all funds—purchase monies, rent deposits, stamp duty, and Land Registry fees—are in place.

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Operational Setup

Plan for:

• Fit-out, redecoration, and any compliance works

• Installation of equipment

• Utility and communications setup

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Insurance & Signage

Confirm whether the landlord insures the building or whether you need buildings cover. Contents and specialist operational insurance will also be required. Update your business signage, stationery, and digital assets.

 

Legal Finalisation

Your lawyer will register the transaction with the Land Registry and file any stamp duty returns.

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Thinking of Leasing or Buying a Care Home?

G76 Global provides complete advisory and transaction support.
From locating suitable opportunities to due diligence, negotiations, and operational setup—our property experts are here to help.

 

Contact our team today to start your journey.

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