Future Bright For Independent Care Sector
“The future is bright for the small, independent care home sector over the next twelve months and banks are keen to lend to the right business people operating them”. This was the conclusion of Marcel Bradbury, solicitor at Adams & Remers at the Home Truths seminar hosted by Adams & Remers LLP & Chandler & Co on Thursday 30 June in Brighton.
The seminar was attended by the owners and managers of care homes across the South East and covered the legal, financial and regulatory issues which they should be aware of and compliant with.
Marcel Bradbury warned however that existing home owners need to ensure they have all the correct paperwork in place and they keep it up to date. This includes everything from checking the planning permission to ensure conditions are complied with to the structure of the business and the way the assets are held.
Marcel Bradbury commented: “The care home sector is one of the few which banks are keen to lend to at the moment, but it is vital if the banks are going to finance the purchase of a care home or refinance an existing deal for them to see a whole range of issues have been covered and it is really important for owners to get on top of this and to stay on top of it.”
“Lenders are not keen however to lend money for the purchase of homes with a low occupancy level or regulatory problems. Prospective buyers should therefore consider a leasehold arrangement where they are able to take over the home and make the necessary improvements with a contract in place to allow them to buy the property after a couple of years. They should also consider lenders preferences for accommodation to be single rooms with ensuite facilities, which will over the next few years see the need for many smaller homes to make significant structural changes to provide this type of accommodation.”
“I really would urge care home owners to ensure their affairs are in order and to take the appropriate professional advice as it really can mean the difference between success and failure.”
2011-07-05 14:21:22
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