Supported Living Mortgages
Supported living mortgages in the UK are specialised financial products designed to facilitate homeownership for individuals requiring long-term care or assistance due to physical or mental disabilities.
These mortgages enable supported living providers, such as housing associations or private care organisations, to purchase or adapt properties tailored to the unique needs of their residents.
By offering flexible terms and conditions, supported living mortgages help ensure that vulnerable individuals have access to secure, suitable housing while receiving the necessary support services. This approach fosters independence, enhances quality of life, and promotes the integration of disabled individuals within the community.
Contact us below to discuss Supported Living Mortgages
or call 01844 390910
BMI will advise on your Supported Living Mortgage. Please seek further specialised advice on aspects such as tenancy agreements, regulation etc.
When considering mortgages for supported living properties, several specific questions and considerations arise due to the unique nature of these properties and their usage.
Here are some key questions and considerations:
PROPERTY CONFIGURATION
Type of Property, Adaptations, Occupancy
FINANCING & VALUATION
Value per use, LTV ratios, Interest Rates
LICENSING & REGULATION
Regulatory Compliance, Licenses, Impact on value
INCOME & AFFORDABILITY
Rental income, Sustainability, Cost of Care
INSURANCE & RISK MANAGEMENT
Insurance coverage required & key risks
Property Configuration
TYPE OF SUPPORTED LIVING
What type of supported living will the property be used for (e.g., assisted living, group homes, independent living with support)?
PROPERTY ADAPTATIONS
Are there any special adaptations or modifications needed for the property to accommodate residents with disabilities or special needs?
OCCUPANCY ARRANGEMENTS
How many individuals will be living in the property, and what are the occupancy arrangements?
Finance & Valuation
VALUATION PROCESS
How is the property valued given its specific use as supported living? Are there specialized valuers familiar with supported living properties?
Loan-to-Value (LTV) Ratio
What LTV ratios are available for supported living properties?
INTEREST RATES
Are there specific interest rates or terms available for supported living properties compared to standard residential or commercial properties?
Licensing & Regulation
REGULATORY COMPLIANCE
Does the property comply with local regulations and standards for supported living facilities?
LICENSES & APPROVALS
Are there necessary licenses or approvals required to operate a supported living property? Have these been obtained?
IMPACT OF REGULATIONS
How might changes in regulations impact the property's value or the ability to secure financing?
Tenancy and Lease Agreements
LEASE TERMS
What are the terms of the lease agreements with tenants or with the supported living service providers? If the lease is with a Housing Association are they government registered?
REGISTERED PROVIDERS
Registered providers of social housing – updated monthly - GOV.UK (www.gov.uk)
SECURITY OF TENURE
How secure are the tenancies or occupancy agreements in supported living properties?
Income & Affordability
RENTAL INCOME
What is the expected rental income from the property? How is it structured (e.g., through direct payments, housing benefits, private pay)?
SUSTAINABILITY OF INCOME
How sustainable is the income stream? Are there long-term agreements in place with local authorities or care providers?
COST OF CARE
What are the associated costs of care and management for the property, and how do they impact overall profitability?
Future Considerations
RESALE VALUE
What factors could impact the future resale value of the property?
DEMAND FOR SUPPORTED LIVING
What is the current and projected demand for supported living accommodations in the area?
MARKET TRENDS
Are there any market trends or changes that could impact the viability of the supported living property?
Supported Living Lenders
Some lenders will not deal direct with customers, with this area being specialist we would suggest speaking with an experienced broker to guide you.
Get in Touch
01844 390910
info@bmimoney.co.uk
FAQs
for
Supported
Living
Mortgages
What is a supported living mortgage?
A supported living mortgage is used to finance a property that will be leased to a supported living provider. The property is used to house individuals who receive care or support, while the landlord remains responsible only for the property, not the care provision.
Is supported living classed as buy-to-let?
Supported living mortgages can fall under specialist buy-to-let or commercial lending, depending on the lease structure, tenant type, and level of care involved. Lenders assess each case individually.
Do supported living properties require CQC registration?
The requirement for Care Quality Commission registration depends on how care is delivered. In many supported living arrangements, the landlord does not require CQC registration, as care is provided separately by a regulated care provider.
How do lenders assess affordability for supported living mortgages?
Affordability is usually assessed using the lease income rather than standard residential rental income. Lenders review lease length, tenant strength, and sustainability of income.
Are supported living mortgages regulated?
Most supported living mortgages are unregulated, as they are typically secured on investment property rather than a borrower’s main residence. Regulation depends on the property use and borrower circumstances.
What types of properties are suitable for supported living?
Supported living properties often include standard houses adapted for accessibility, small HMOs, or specialist accommodation. Suitability depends on local authority demand and provider requirements.
Can first-time landlords get supported living mortgages?
Some lenders will consider first-time landlords, although supported living is often better suited to experienced investors. Criteria varies depending on the provider, lease, and property type.
Do supported living mortgages require longer leases?
Yes. Many lenders prefer longer leases, often 5 to 20 years, as this provides greater income certainty and reduces perceived risk.
Are supported living mortgage rates higher?
Rates can be higher than standard buy-to-let mortgages due to the specialist nature of supported living. However, this varies depending on lease strength, property type, and lender appetite.
Can supported living properties be owned in a limited company?
Yes. Many supported living properties are owned through limited companies or SPVs. Lenders may require personal guarantees from directors.
What risks should landlords consider with supported living?
Key risks include provider reliability, lease enforceability, and changes in local authority funding. Lenders assess these factors carefully during underwriting.
Is supported living suitable for all property investors?
Not always. Supported living can offer stable, long-term income, but it requires careful due diligence. It is generally more suitable for investors comfortable with specialist property models.
