Welcome to the launch of our regular newsletter with an update reflecting the care home broker financing news.  

At Chandler & Co. we continue to work closely with the growing number of ‘lenders’ supporting First Time Buyers to the developing Multiple Site Operators within the care home and wider care sector. With the diversity of lenders and changing credit policies the independent broker team continue to work tirelessly to smooth the journey of acquiring a care home, working alongside other professionals such as solicitors and accountants (

To support your care home needs, the expert finance broker team fully manage your financing requirements with bespoke support tailored specifically for you.

Year to date reflection

As we approach Autumn the year to date has been extremely busy with a vibrant acquisitive care home market with the broker team looking after first time buyers to the growing independent care home groups.

From the Buyacarehome enquiry through to finance application the care home market continues to rise above the many challenges that exist in this sector.  In the recent ‘interview with the Chandler & Co Brokers’ The Fast Moving Interest Arena looks at the impact of fast moving interest rates on the care home sector.

At the time of writing the base rate of interest is currently 1.75% with the Bank of England continuing to monitor the UK economy.  Lending criteria consider debt affordability as part of stress testing, which is now starting to include additional commentary and impact around increasing energy costs and food prices when looking at the viability and sustainability of running a care home.

Addressing the care home journey to date this year care home case studies have shown a buoyant and acquisitive care home market despite the pandemic years, with occupancy picking back up and in some areas to pre pandemic levels.

Lending theme highlights

‘Care home acquisition tips from the Chandler&Co brokers’

“clarity of business structure from the start ensures a smoother transaction”

“we request at least three year financials regarding the proposed care home acquisition”

“year to date reliable management information essential for any due diligence”

“forward cash flows, projections and current occupancy all form part of the acquisition due diligence”

“if acquiring a group remember to prepare a consolidated group cash flow as part of the finance application”

“have an updated CV to hand of the acquiring director/operators”

“if a site has planning permission to expand this adds value to a bank proposal especially if the property is registered for 30 beds or below”

“lender margins tend to be subject to the overall loan amount”

“the latest Care Regulator report is always looked at as part of the finance application”

“if there is Requires Improvement rating this tends to fall to the acquirer to demonstrate improvement action with lenders preferring an experienced buyer”

“management strength in the care home is always an area of focus together with the CV of the buyer, proposed Board”

“a senior management team showing depth and years of experience is always a positive with lenders”

“a vendor’s ability to orchestrate a smooth handover helps to facilitate the acquisition process”

“evidencing the care home’s green strategy is having increasing importance as part of a finance application; this could be a reason for requesting refurbishment finance and a sustainable eco extension or new build”

“banks are wanting to ensure that they are lending to the right borrower with the right motivations”

Care Home Market Outlook

The market for care homes remains competitive with demand from buyers steadily increasing year to date, for both open or closed trading status, despite the ongoing challenges in the sector including staff recruitment and retention, evolving compliance regulation, the rising cost of living and increase in other operational costs such as energy and insurance.

Example lending criteria year to date

  • LTV 65% to 70/75%
  • MV1 to MV3
  • Term 5 to 15 years
  • Amortisation profile 15 to 25 years
  • Interest only period 12 to 24 months
  • Subject to credit policy and bed registration
  • Single unit or multiple units for broker finance
  • Typical security
    • Floating charges 
    • Debenture over company 
    • Personal guarantees from shareholders 

Typical finance deals from the Chandler&Co finance brokers

  • For first time and existing care home owners
  • Care home acquisition
    • Asset purchase
    • Share purchase
  • Refinance
  • Restructuring debt and existing business loans 
    • For acquisition equity release and cash flow
  • Development
  • Expansion
  • Refurbishment
  • Capital raise
  • Management buyout

“A specialist tailored care home broker service for all your needs with up to date market research and knowledge from an expert independent care sector team”

“If you are considering taking the next step buying your first care home or growing your multi-site group of care homes please call us on 01622 817484 or apply on line at Chandler & Co or