Care Homes
Buying a care home?
We arrange the finance. You get the keys.
Finance for buying a care home
Care home purchases are among the most substantial and specialist acquisitions in the small business market. The value sits primarily in the trading performance of the business — occupancy rates, fee income mix, and the CQC rating — rather than simply in the bricks and mortar of the building. Lenders who understand the sector lend against EBITDA and regulatory standing, and will advance meaningfully more to a well-prepared buyer than a generalist lender applying standard commercial criteria.
Getting the funding right means finding lenders with genuine care sector appetite, and presenting the deal in a way that reflects the real quality of the business — its occupancy history, its fee income stability, and the strength of the management team taking it forward.
Registered manager continuity and staffing costs
A strong, stable registered manager who is staying through the transition reassures lenders that the business will continue to operate compliantly after the ownership change. Where the seller is also the registered manager, lenders will want to understand the succession plan in detail. Staffing costs — particularly agency spend — are assessed alongside occupancy and fee income. High agency reliance can suppress margins and raises questions about operational stability that need addressing in the application.
We are acquisition finance and loans brokers, not lenders. We package your application, present it to the funders most likely to approve it, and manage the process from first conversation through to completion. We also arrange government-backed facilities — helping buyers access up to £2 million toward their purchase where the criteria are met.
Every acquisition is different. Tell us about the business. We will take it from there.
For the wider funding options, explore business acquisition finance.
01 — Who we help
First-time buyers, experienced operators, and everyone in between
First-time buyers
Buying your first care business, stepping out of a registered manager role, or backing a clinician-led venture.
Existing operators expanding
Adding a second home or branch, increasing beds or hours, or consolidating a small group.
Family business buyers
Taking over a parent’s care business, buying out a sibling, or passing it to the next generation.
Investors
Buying a care business as a business investment, to lease out for rental income.
Buyers of underperforming homes
Experienced operators acquiring homes with occupancy or rating issues and a robust turnaround plan behind them.
02 — The opportunity
What can we help you buy?
We arrange acquisition finance and loans for care home and residential care businesses across the UK — from small residential homes to larger nursing and specialist care facilities.
Residential care homes
Residential care homes providing personal care for elderly residents are the most common care home acquisition. Strong demand driven by an ageing population, combined with occupancy rates across the UK at their highest since before the pandemic, makes this a compelling sector for both buyers and lenders. The asking prices for leasehold and freehold care homes typically range from £200,000 to £1.5m.
Nursing homes
Nursing homes providing clinical care alongside personal care attract higher fee rates and a different regulatory framework. CQC registration, staffing ratios, and the registered manager's qualifications are central to both the valuation and the lender assessment.
Care homes with Outstanding or Good CQC ratings
A CQC rating is the single most important factor in care home valuations and lender confidence. Outstanding and Good rated homes command premium valuations and attract the strongest lender appetite and the most competitive funding terms.
Specialist care facilities
Homes specialising in dementia care, learning disabilities, or mental health support typically operate at higher fee rates than general residential care. The specialist registration and staffing requirements are assessed carefully alongside the fee income when structuring the funding.
Care homes with local authority contracts
Homes with a proportion of local authority-funded residents have a contracted income stream alongside private fee payers. The mix of funding sources affects both the revenue profile and the lender assessment — private-pay-heavy homes generally attract higher valuations.
Freehold care home properties
Most care home acquisitions involve a substantial property alongside the operating business. A commercial mortgage against the care home building provides the primary funding, with the EBITDA and occupancy of the business assessed to confirm the debt can be serviced from trading cash flow.
Leasehold care operations
Where the business is bought without the freehold, lenders assess occupancy, fee income and the strength of the lease.
Homes requiring a turnaround
Homes with a Requires Improvement rating or low occupancy may be fundable where an experienced buyer has a robust plan for addressing the issues.
03 — The transaction
What can we finance?
The Business Purchase
Funding to buy a trading business, including goodwill and the business assets.
The Freehold
Funding for the purchase of the premises from which the business operates.
The Leasehold
Funding to buy a business operating from leased premises.
Fixtures, Fittings and Equipment
Where appropriate, funding can also take account of the assets required to operate the business.
Working Capital
Depending on the transaction, we can arrange funding for the initial working capital required after you take ownership.
Every deal is assessed on its own merits — not every element of every purchase will be financeable, and we'll tell you plainly what is and what isn't.
04 — The lender's view
What will lenders look at?
Lenders want to see a professionally prepared funding application. They want to know that the business is viable, that the proposed borrowing is affordable and that their loan can be repaid as agreed.
We use our proven iLendi Six™ method to build a strong funding application around the things lenders need to understand about your purchase.
Read more about the iLendi Six™05 — The funding
How much can you borrow?
Every purchase is different. The amount you can borrow will depend on the business, its trading performance, the purchase price, your circumstances and the structure of the transaction.
For healthcare businesses, lenders will examine occupancy or hours delivered, the mix of local authority and private income, CQC ratings, and staffing stability.
We arrange funding and work with you to find the financing solution that best fits the purchase.
06 — The completion
The iLendi Approach
Three steps from finding the business to owning it.
01
The Discovery
You have just found the business you want. You tell us all about it.
02
The Finance
You need financing to buy the business; we find the money.
03
The Completion
We stay by your side through to legal work completion and the business is yours.
Common questions
Buying a care home — your questions answered
What do lenders look at in a care home purchase?+
CQC rating, occupancy, fee rates, staffing levels, and the value of the property. Care homes usually include substantial freehold security, which supports longer terms and higher lending.
How much deposit do I need to buy a care home?+
Most care home acquisitions are funded with a deposit of around 20% to 30% of the purchase price, though this varies with the strength of the trading figures, whether the deal includes freehold property, and your own experience. Where there is property security or a particularly strong trading history, lenders can sometimes go further.
Can I borrow against goodwill when buying a care home?+
Yes. Specialist acquisition lenders will lend against goodwill where the trading history supports it, which is essential for leasehold deals with no bricks-and-mortar security. The application has to be presented so the underwriter can see the sustainable, transferable earnings behind that goodwill.
How long does it take to arrange finance to buy a care home?+
Indicative terms are usually available within 48 hours of your enquiry. A full offer typically follows within two to four weeks, with completion driven mainly by valuation and the pace of the legal work on both sides.
Is iLendi Capital a lender or broker?+
iLendi Capital is an acquisition finance and loans broker, not a direct lender. We work with buyers across the UK to prepare their funding applications, introduce them to the lenders most likely to approve them, and manage the deal through to completion. We also specialise in government-backed facilities, helping you secure up to £2m toward your purchase.
Keep exploring
Related businesses we fund
Buyers of care homes often look at these neighbouring sectors too.
Found your care home?
Let's find the finance.
Begin your funding process
Start with a conversation.
Tell us what you want to buy and an experienced funding specialist will call you back same day to discuss how we can help.
Other ways to contact us
Send an email:enquiries@ilendicapital.co.ukCall us: +44 (0)20 3488 8126We'll open WhatsApp with: "Hello iLendi Capital — I'm looking at buying a business and would like to talk."