Source Long Term Lease Properties for Care Providers

A practical guide for care providers, nursing home operators, supported living providers, investors and landlords looking for long-term lease property across London and the UK

Finding a suitable long-term lease property for a care provider requires more than finding a building with enough bedrooms. The property needs to support the operator's care model, resident requirements, staffing arrangements, regulatory obligations and long-term financial plans.

Long-term care property leases can provide operators with access to suitable premises without the capital commitment associated with purchasing a building. For landlords, leasing a property to an established care provider can create an opportunity to secure a specialist occupier for an extended period.

The property still needs to be assessed carefully. CQC states that premises used for regulated care must be suitable for their intended purpose, properly maintained and appropriately located.

What are long-term lease properties for care providers?

A long-term lease property is premises secured by a care provider for an extended period under a commercial lease or another appropriate legal arrangement.

Potential properties include:

Residential care homes
Nursing homes
Former care homes
Vacant care facilities
Dementia care properties
Specialist disability accommodation
Supported living properties
Large residential houses
Former healthcare buildings
Rehabilitation properties
Purpose-designed care accommodation

The appropriate property depends on the operator's intended service and the people who will use it.

Start with the care provider's requirements

Before sourcing properties, the operator should prepare a detailed property brief.

This can include:

Type of care
Resident profile
Number of residents
Number of bedrooms
En-suite requirements
Accessibility requirements
Communal facilities
Staff accommodation
Overnight staffing requirements
Kitchen facilities
Therapy or treatment areas
Outdoor space
Parking
Preferred locations
Maximum rent
Required lease length
Refurbishment requirements
Planning requirements

A detailed brief allows properties to be assessed against operational requirements rather than simply advertised floor area or bedroom numbers.

Why care providers consider long-term leases

Leasing can provide an alternative to purchasing the freehold of a care property.

Depending on the operator's circumstances, a long-term lease may allow the provider to:

Reduce initial property acquisition costs
Preserve capital for staffing and equipment
Establish a service in a new location
Expand an existing care operation
Secure premises for an extended period
Refurbish a property under agreed lease terms
Operate without taking ownership of the underlying property

The lease structure needs to reflect the investment the operator expects to make in the building.

For example, an operator spending substantially on accessibility, bathrooms, fire safety or internal reconfiguration may require sufficient lease security to justify that expenditure.

Existing care homes can be suitable lease opportunities

Existing and former care homes are natural targets when sourcing long-term lease property for care providers.

They may already contain:

Resident bedrooms
En-suite bathrooms
Communal lounges
Dining rooms
Kitchens
Laundry facilities
Staff offices
Storage
Accessible facilities
Lifts
Gardens
Parking

A former care home can sometimes reduce conversion requirements compared with an ordinary residential building.

However, the operator should still assess the building's condition, planning position, layout and suitability for the proposed service before signing a lease.

Former nursing homes and healthcare buildings

Former nursing homes and healthcare properties can also provide opportunities.

Depending on the proposed service, a property may already have:

Accessible accommodation
Treatment areas
Staff facilities
Clinical or specialist spaces
Commercial kitchen facilities
Lifts
Fire safety infrastructure
Larger circulation areas

The previous use should be treated as useful background rather than automatic approval for the new operation.

CQC identifies care homes where people are accommodated and receive personal and/or nursing care as a type of location subject to its registration framework.

Match the building to the care model

A long-term lease should be considered in the context of the operator's specific service.

Residential care

A residential care home may require:

Accessible bedrooms
Communal lounges
Dining facilities
Accessible bathrooms
Kitchen facilities
Gardens
Staff areas

Nursing care

A nursing operation may require additional space for:

Clinical equipment
Medication
Nursing staff
Mobility equipment
Enhanced bathrooms
Resident care

Dementia care

A dementia service may require particular attention to:

Wayfinding
Safe circulation
Secure outdoor areas
Lighting
Quiet spaces
Accessibility
Communal areas

Supported living

Supported living may use houses, bungalows, flats or purpose-designed accommodation depending on the needs of residents.

The property sourcing process should therefore establish the service model before the search begins.

Location matters for long-term care property

Location should be assessed as carefully as the building.

Relevant factors can include:

Public transport
GP services
Hospitals
Pharmacies
Local shops
Community facilities
Leisure facilities
Staff recruitment
Parking
Residential surroundings
Local demand
Access to family and support networks

CQC's Regulation 15 guidance states that providers should consider the anticipated needs of people using the service and access to relevant facilities and the local community when planning premises.

A property that appears attractive financially may therefore be unsuitable if its location creates operational difficulties.

Planning and lawful use

Planning should be investigated before a long-term lease is signed.

The operator should establish:

Current lawful use
Previous use
Planning history
Proposed care use
Planning conditions
Potential change of use
Extension opportunities
Parking requirements
Restrictions affecting the property

A former care home may have an established planning history, but the operator should not assume that every proposed care model or alteration is automatically permitted.

Where the planning position is uncertain, specialist planning advice should be obtained before committing to the lease.

CQC requirements and the leased premises

A care provider should consider CQC requirements while negotiating the property rather than after signing the lease.

CQC Regulation 15 requires premises used by providers to be clean, secure, suitable for their purpose, properly maintained and appropriately located. CQC can refuse registration where a provider cannot demonstrate that it can comply with the regulation.

This means the lease should provide the operator with sufficient rights to maintain and, where necessary, adapt the premises.

The provider should establish who is responsible for:

Repairs
Maintenance
Fire safety systems
Heating
Electrical installations
Plumbing
Roof
External areas
Accessibility adaptations
Lifts
Compliance works

Lease length matters

The required lease term should reflect the operator's investment and business plan.

A care provider investing heavily in refurbishment may require a longer lease to recover the expenditure.

Important commercial terms can include:

Initial lease term
Break clauses
Renewal rights
Rent reviews
Rent-free periods
Deposit
Service charge
Repair obligations
Insurance
Assignment
Subletting
Alterations
Dilapidations
Permitted use

The exact structure should be negotiated with professional legal and property advice.

Landlords should understand the proposed care use

For landlords, leasing a property to a care provider involves more than collecting rent.

The landlord should understand:

The proposed use
Planning position
Required alterations
Lease structure
Repair obligations
Compliance responsibilities
Insurance requirements
Proposed operator
Refurbishment works

Where the provider needs substantial alterations, the landlord should establish what happens to those improvements when the lease ends.

Refurbishment before or during the lease

Some long-term lease properties will require refurbishment before the operator can use them.

Potential works include:

Bathroom upgrades
Bedroom alterations
Accessibility improvements
Fire safety works
Heating replacement
Electrical upgrades
Kitchen refurbishment
Lift improvements
Internal reconfiguration
Garden improvements

CQC guidance states that providers should maintain suitable premises and carry out regular health and safety risk assessments. It also requires alterations to premises used for care and treatment to comply with relevant legislation and guidance.

A refurbishment schedule should therefore be agreed with the landlord before work begins.

Consider long-term lease opportunities off-market

Some of the most relevant properties may not be publicly marketed as care premises.

An off-market search can identify:

Private landlords
Vacant care homes
Former nursing homes
Investor-owned buildings
Former healthcare properties
Large houses
Development properties
Properties approaching the end of an existing care use

This can be particularly useful where a provider requires a specific number of bedrooms, location, accessibility standard or lease term.

Assess the property before signing

A long-term lease can create a significant commitment, so the property should be surveyed before completion.

Due diligence can include:

Building survey
Title review
Planning history
Lawful use
Fire risk assessment
Floor plans
Electrical certificates
Gas certificates
EPC
Asbestos information where applicable
Accessibility assessment
Lift inspection
Drainage assessment
Heating inspection
Refurbishment quotations
Insurance requirements
Lease review

The operator should understand both the physical condition and the financial obligations associated with the property.

Consider the total occupancy cost

The headline rent is only one part of the cost of leasing care premises.

The operator should also consider:

Service charges
Business rates
Insurance
Utilities
Repairs
Maintenance
Compliance works
Refurbishment
Professional fees
Planning costs
Legal fees
Dilapidations
Equipment
Grounds maintenance

A property with a lower annual rent may still be more expensive overall if it requires substantial refurbishment or ongoing maintenance.

Finding long-term lease properties across London and the UK

Care property leasing opportunities can be sourced through:

Specialist property agents
Commercial agents
Healthcare property networks
Private landlords
Existing care operators
Property investors
Developers
Off-market introductions
Former care property owners

London can offer access to a large range of specialist property opportunities, although acquisition and rental costs can vary substantially between boroughs and property types.

Regional markets may provide different property sizes, rents and development opportunities.

Working with Fraser Bond

Fraser Bond can support care providers, nursing home operators, supported living providers, landlords, investors and developers looking for long-term lease properties across London and the UK.

Support can include:

Long-term care property sourcing
Off-market property searches
Lease negotiations
Acquisition advice
Planning coordination
Property assessment
Refurbishment planning
Building works
Contractor coordination
Property management
Development consultancy

The search can be structured around the provider's service model, resident requirements, preferred location, lease term, budget and refurbishment needs.

Source long-term lease property for your care operation

A long-term lease can give a care provider access to suitable premises without purchasing the underlying property, but the building and lease need to be assessed together.

The operator should consider the care model, property layout, location, planning position, CQC requirements, accessibility, building condition, refurbishment costs and lease obligations before committing.

Fraser Bond can help care providers source and assess long-term lease properties across London and the wider UK, including existing care homes, former nursing homes, specialist care properties, large residential buildings and conversion opportunities.

Whether you need a long-term lease for a new care home, nursing operation, supported living service or specialist care facility, a structured property search can help identify premises that align with your operational requirements and long-term plans.