Can care homes get refurbishment or property-backed finance? (Healthcare business loans)

Short answer: Yes — care homes can obtain refurbishment and property-backed financing. UK Business Loans helps care-home owners and operators (loans from £10,000 and up) by matching enquiries with specialist lenders and brokers who can provide tailored quotes. Submitting an enquiry is quick, confidential and not an application. Get Quote Now: Get Quote Now.

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Table of contents

• Quick answer — how UK Business Loans helps
• Which finance options suit care homes?
• Typical eligibility criteria lenders look for
• What documents you’ll need
• How UK Business Loans matches care homes with lenders & brokers
• Typical costs, terms and timescales
• Common care-home financing scenarios (case studies)
• Risks, planning & compliance considerations
• Frequently asked questions
• Ready to get a free eligibility check?
• Author, review & legal notes

Quick answer — yes, and here’s how UK Business Loans can help

Yes — registered care homes can access property-backed and refurbishment finance. Typical routes include commercial mortgages, development or conversion finance, bridging loans and refurbishment/fit-out finance. UK Business Loans does not provide funds itself; instead we use a short enquiry to match your business to lenders and brokers who specialise in care-home property and healthcare sector finance. The enquiry is quick (around two minutes), confidential and does not affect your credit score. Free Eligibility Check

Which finance options suit care homes?

Care-home owners and operators commonly use several finance products depending on the need:

Commercial mortgages & buy-to-let (for registered care properties)

• Longer-term, mortgage-style loans for purchase or refinance of care-home buildings.
• Suitable where property is used as primary security and operator demonstrates stable income/occupancy.

Property development & conversion finance

• Structured finance for converting buildings into registered care homes or major refurbishments — often staged to completion milestones.
• May combine development drawdown with a long-term mortgage on completion.

Bridging loans (short-term)

• Short-term funding to secure sites, bridge a sale/purchase or allow refurbishment before refinancing to a mortgage.
• Useful for fast purchases or where timing is critical.

Refurbishment & fit-out loans

• Funding for internal upgrades, en-suite conversions, communal areas, kitchens or dementia-friendly works.
• Can be included in property-backed packages or provided as standalone loans.

Asset & equipment finance

• Separate finance for beds, hoists, laundry, kitchen equipment and clinical assets via hire purchase or leasing.

Refinance & debt consolidation

• Restructure existing borrowing to improve cashflow or fund capital works without adding new security to the property.

Typical eligibility criteria lenders look for (care-home specific)

Care-home lending is specialist. Lenders will assess the business and property together — common criteria include:

• Business structure & trading history: Incorporated operators and limited companies with tangible trading history preferred; lenders usually favour proven operators with stable accounts.
• Registration & compliance: CQC registration and a positive compliance history are important; outstanding enforcement action can hinder approval. See CQC guidance for operators (external link).
• Property valuation & use class: Will the property be valued as a care-home asset? Lenders need clear evidence of permitted use and suitable facilities.
• Occupancy & contracts: Typical lenders check occupancy levels, local referral agreements and revenue predictability (e.g., local authority contracts).
• Security & LTV expectations: Loan-to-value (LTV) limits vary by lender — specialist healthcare property lenders may accept different LTVs to general commercial lenders.
• Management & financials: EBITDA, cashflow, staffing and policy documentation will be reviewed.

What documents you’ll need (quick checklist)

Prepare these to speed up matching and quoting:

• Latest 2–3 years’ accounts and management accounts (profit & loss, balance sheet)
• Business plan or summary of the refurbishment/conversion scope and budget
• Details of CQC registration (certificate and any recent reports)
• Property details: title deeds, valuation (if available) and EPC
• Occupancy records, referral contracts and recent invoices
• Identification for directors and business bank statements (3–6 months)

How UK Business Loans matches care homes with lenders & brokers

Our process is designed to be fast and sector-focused:

• 1. Fast enquiry form — under two minutes: You provide a few key details (loan amount, purpose, postcode and contact). Submitting is not an application and will not affect your credit file.
• 2. Intelligent match: We match your case to specialist lenders and brokers on our panel who have experience in care-home and healthcare property finance.
• 3. Broker/lender contact & quotes: Selected partners contact you directly to discuss options and provide no-obligation quotes.

Start your short enquiry now: Get Quote Now (2-minute form).

Typical costs, terms and timescales (what to expect)

Costs vary widely by product and lender. Broad guidance:

• Loan sizes: UK Business Loans typically helps arrange loans from around £10,000 upwards for care-home projects.
• LTV ranges: Specialist lenders may offer competitive LTVs depending on operator strength, property quality and income prospects.
• Terms & repayments: Mortgages are usually longer-term (5–25 years), bridging is short-term (days to 12 months), development finance often has staged drawdowns.
• Fees & costs: Arrangement fees, valuation, legal fees and exit fees may apply — you’ll receive tailored fee information in each quote.
• Timescales: Simple bridging or asset finance can be arranged in days; complex development finance or mortgages may take several weeks depending on surveys, planning and lender due diligence.

Exact costs vary — you’ll receive personalised quotes once matched.

Common care-home financing scenarios (3 short case studies)

Case study 1 — Refurbishment of a 40‑bed home

Situation: 40-bed home needs phased en-suite upgrades and a new dementia wing. Funding: operator secured a blended solution — short bridging to start works, then a longer-term commercial mortgage to refinance on completion. Outcome: works completed without interrupting operations and improved occupancy over 12 months.

Case study 2 — Conversion of building to a care home

Situation: investor buys former office block to convert into a 30-bed care home. Funding: development finance with staged drawdowns linked to planning milestones, then conversion to mortgage on opening. Outcome: project completed on budget and operator started trading under a new licence.

Case study 3 — Short-term bridging to secure a new site

Situation: experienced operator found an opportunity but needed funds quickly to secure purchase before due diligence. Funding: short-term bridging loan settled within days; operator later refinanced to a specialist healthcare mortgage. Outcome: site secured and converted to a care home within 9 months.

Risks, planning & compliance considerations

• CQC registration & planning: Ensure the property meets CQC and local planning requirements before committing to large spend.
• Security & guarantees: Some lenders may request personal guarantees or additional security — understand these before you proceed.
• Cashflow impact: Conduct sensitivity testing — refurbishment cost overruns or lower occupancy can strain finances.
• Exit planning: Consider how short-term facilities will be repaid or refinanced and whether long-term mortgage terms are in place.

If you’re unsure, ask to speak to a specialist broker — they can model scenarios and recommend mitigations.

Frequently asked questions (FAQ)

Do care homes qualify for mortgage-style loans?
Yes. Many lenders provide commercial mortgages or specialist healthcare property loans for registered care homes. Approval depends on property, operator credentials, occupancy and lender criteria.

Can I get funding with imperfect credit?
Possibly. Some lenders and specialist panels work with businesses that have credit issues, but terms may be different. Disclose any issues early so matches are appropriate.

Will applying via UK Business Loans affect my credit score?
No. Submitting an enquiry does not affect your credit score. Lenders perform formal credit checks only after you progress and provide consent.

Can funding include equipment & fit-out costs?
Yes — some property-backed packages include fit-out, or you can combine property finance with asset/equipment finance to cover beds, hoists and specialist equipment.

Can you help with grants or local authority funding?
Our service focuses on matching you with lenders and brokers for commercial finance. For grants or public funding, we can point you towards resources but you should also contact local authorities or sector bodies.

Ready to get a fast, free eligibility check?

If you run or manage a care home and are exploring refurbishment or property-backed finance, complete our short enquiry now. It takes under two minutes, won’t affect your credit file and lets us match you with lenders or brokers who understand the care sector. Free Eligibility Check — Get Quote Now.

Author, review & legal / compliance notes

By: Content Team, UK Business Loans — Reviewed: 29 October 2025. UK Business Loans is an introducer and does not lend money or provide regulated financial advice. Submitting an enquiry is not an application; partners may contact you to discuss quotes and next steps. Loans are subject to lender terms and status. For privacy and data handling see our Privacy Policy.

Related resource: for more on sector-specific options and broader healthcare lending information see our healthcare business loans page: healthcare business loans.

External guidance: check CQC operator guidance and local planning permission pages on GOV.UK when planning structural changes.