Residential care homes, providing care for elderly and frail people when living independently has become too much of a struggle involve more responsibility than many other business sectors. But, with the number of people over the age of 85 set to double from 1.4m to 3.5m over the next 25 years, the need for care home places is growing fast.
Care homes range from the frankly luxurious, for affluent residents, to the more basic, where the local government pays the fees. All need to be registered and inspected to ensure they meet standards set out in the Care Standards Act. The act dictates the standards for nursing, facilities, entertainment and the home environment, to ensure that the physical and emotional needs of residents are met. It has helped drive up standards across the sector, and demonstrated the need for motivated and qualified staff, and a real commitment to resident care.
Costs have risen since the act was passed. New regulations have forced many existing homes to close, and made it more difficult to convert existing properties into care homes. However, with sufficient investment, buying, or setting up a care home can still provide, a financially rewarding business.
Refurbishment and fit-out
There will be substantial conversion and fit-out costs. The interior must be safe for residents and accessible for wheelchairs, and meet a long list of regulations. Provision for fire escapes, for example, will need to be even more rigorous than those for hotels.
Equipping your care home
You may need a range of equipment for your care home. A catering kitchen may be essential, and you may need specialist items such as lifts for residents who are losing mobility. Asset Finance can help make the equipment you need more affordable, by spreading the costs over time.
With Asset Finance, the funds you need are secured on the asset itself. This means that if you were unable to make the repayments the lender would simply repossess the asset. It can also reduce the cost of the finance, as lower risk to the lender usually means lower interest rates to you.
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