Structuring Finance for a Complex Supported Living Portfolio

We were approached by a client with a portfolio of residential properties leased to his wife’s care company, which provides 24-hour support to vulnerable individuals. While the social impact was clear, the structure presented a number of challenges from a lending perspective.

Key Challenges

• Tenant profile: The end occupiers were individuals typically not accepted by the majority of mainstream lenders due to perceived risk.
• Corporate structure: The properties were leased to a connected care provider, adding further scrutiny around tenancy arrangements and income sustainability.
• Security complexity:
  • Two separate securities were required
  • Security properties changed during the application process, requiring flexibility and lender confidence
• Sector perception: Supported living continues to sit outside standard policy for many lenders, limiting options and increasing the need for specialist placement.

Our Approach

We worked closely with both the client and lender to clearly articulate the strength of the income stream, the operational model of the care company, and the long-term demand for supported housing. By proactively addressing perceived risks and maintaining transparency throughout structural changes, we were able to maintain lender appetite.

The Outcome

• Secured funding with a Tier 1 lender
• 3-year fixed rate at 5.99%
• 1.5% arrangement fee
• Structure successfully accommodated multiple securities and in-flight changes

The Impact

This deal ensured continued provision of essential housing for vulnerable individuals while delivering a robust, competitive funding solution for the client.