Question 1

What is assisted living property investment?

Accepted Answer

It is the purchase of residential property intended to be occupied by a care or supported-living provider, normally under a long-term lease. You own the property; the operator delivers the care and support.

Question 2

How does assisted living property investment work?

Accepted Answer

You buy a property that suits assisted or supported living use, the property is leased to an appropriate operator, and you receive rent under the terms of that lease. The full process is set out on our How Assisted Living Property Investment Works page.

Question 3

What is a property backed investment?

Accepted Answer

It means the investment is secured on a physical asset. You hold the legal title to the property itself rather than a share, bond or contract, so the value of the investment is tied to a real building you own.

Question 4

How is an investment yield calculated?

Accepted Answer

A gross yield is the annual rent divided by the purchase price, expressed as a percentage. Any yield figure shown on this website is indicative, based on the information available at the time and subject to contract. It is not a guarantee of income.

Question 5

What should investors consider before investing in a care property?

Accepted Answer

The lease terms and length, who is responsible for repairs, the operator and their ability to pay rent, the purchase price against comparable local values, the resale market for the property, and your own tax position. Always instruct your own solicitor and take independent advice.

Question 6

What is supported living?

Accepted Answer

Supported living is ordinary housing where people receive the support they need to live independently. The person has their own tenancy or occupancy agreement and support is provided separately.

Question 7

Who occupies the property?

Accepted Answer

People who require additional support to live independently. Who that is depends on the operator's service and the local commissioning arrangements in place.

Question 8

Who operates the property?

Accepted Answer

A care or supported-living provider, usually regulated where regulated activity is delivered. Operator details are shared with interested investors during due diligence.

Question 9

How long are the leases?

Accepted Answer

Lease lengths vary by opportunity. Long-term arrangements of up to 25 years are used in this sector, but every lease is specific to the property and subject to contract.

Question 10

How does the investor receive income?

Accepted Answer

Rent is paid by the tenant under the lease, typically monthly or quarterly, in accordance with the terms agreed.

Question 11

Is rental income guaranteed?

Accepted Answer

No. Income depends on the lease, the operator's ability to pay and the arrangements in place. Income and property values can fall as well as rise.

Question 12

Who is responsible for maintenance?

Accepted Answer

This depends on the repairing obligations set out in the lease. Some leases place most repairing responsibility on the tenant; others do not. Have your solicitor review this carefully.

Question 13

What happens if an operator leaves?

Accepted Answer

The property may become vacant, and rent would stop until a new arrangement is agreed. Re-letting is not guaranteed and may take time, so void risk should be part of your planning.

Question 14

Can I sell the property?

Accepted Answer

Yes, you own the freehold or leasehold interest and can sell it. A property let to an operator may appeal to a narrower buyer pool than an open-market home, which can affect timescales and price.

Question 15

What due diligence should I carry out?

Accepted Answer

As a minimum: a survey, an independent valuation, legal title and lease review, checks on the operator, and consideration of local demand and resale prospects.

Question 16

What are the risks?

Accepted Answer

Operator failure, void periods, changes in funding or commissioning, maintenance costs, changes in regulation, illiquidity and falls in property value.

Question 17

Do I need a solicitor?

Accepted Answer

Yes. You should instruct your own solicitor, independent of any other party in the transaction.

Question 18

Do I need independent financial advice?

Accepted Answer

We strongly recommend it. Nothing on this website is financial advice or a personal recommendation.

Questions investors ask