The leaseholds of individual care studios within the development portfolio can now be purchased by investors at a discount on their full retail price. Once purchased, the developers will lease-back the care studio from you for a price equal to 10% net for the following 10 years.
When the luxury refurbishment works are done, each property is relaunched with comprehensive regional online/offline marketing campaigns, and operated by an experienced care services business, 5 Star Care Home Management. With their luxurious interiors and premium-level fees, the care communities are clearly positioned as the premier care accommodation within their region, and targeted at self-funding, high net worth individuals and couples who can choose to either lease of buy their care studio.
Investors can purchase the leaseholds of individual care studios within our development portfolio at a 30% discount on their full market price. On completion, investors can choose one of three ways to receive their income:
Receive rental income based on the studio’s market rate, with a developer’s cash-back (3% of purchase price) on completion to cover the period of refurbishment works. Rental income will then be paid when the studio is occupied.
Receive a 10% fixed monthly income by using a lease management company, such as our preferred supplier Care Home Freehold Ltd. This will safeguard income regardless of whether the studio is occupied or not. The same developer’s 3% cash-back is paid during refurbishment works, and the investor will pay the managing agent a one-off fee of 25% of the total annual rent to cover legal, admin and maintenance fees.
An investor may choose to pay the full market price for the studio, either for their own use or for a family member (T&Cs and eligibility criteria apply).
- Increasing demand for luxury care home accommodation
- Option For 10% rental returns guaranteed for 10 years
- Monthly rental income payments
- Hands free investment, fully managed
- 125-year lease
- 110% buy back guarantee from exchange
- 125% buy back guarantee in year 10
- Extremely high demand within local area
- 24/7 concierge service
Key to the appeal of the Rosewell care home investment is its clearly defined exit strategy, which allows investors to exit the investment with a guaranteed increase of 10% on top of the original unit purchase price. This buy back option is key to the strategy of the developer, and as such they are motivated to purchase the unit back from the investor within a short to medium time frame.
From exchange of contracts - 110% (end user purchase)
From Year 5 - 110% investor option
From Year 10 - 125% investor option
Investor purchases care home unit for reduced price of £76,965
From exchange of contracts, the investor starts to earn 10% net rental income, paid monthly.
Although the developer can purchase the unit back at any point after exchange of contracts (for a guaranteed 10% increase on the investor's purchase price), we have used an example time frame of 12 months below:
12 months’ rental income at 10% = £7,696.50 already received
£84,661.50 plus £7,696.50 = £92,358.00 total, a return of 20% in twelve months.
Residential care home sector is currently worth £15.9 billion and is currently struggling with the high demand of elderly people needing home. For the first time the amount people in the age group over 60 (14 million) is now outnumbering the under 16 age group (11.5 million).