Supported and assisted living stabilisation finance

How we arrange supported living finance to a let scheme

We arrange supported living finance around provider sign-up and tenant placement, and pre-agree the exit. For a completed scheme, we place stabilisation finance commonly to around 65 to 75% of value, short-dated across the period to a fully-let asset, sized on the contracted income the long lease will deliver once the provider and tenants are in place. Where the scheme has just been built, development exit finance repays the development facility and gives time to sign up a registered provider and place tenants without a construction loan running on. Because the income switches on only when the lease is income-producing, interest is often part-serviced or rolled in the interim. Where workable senior debt is already in place, we can instead structure a second-charge facility behind it to fund the period to a let scheme, subject to the senior lender's consent, rather than refinancing the whole position. We pre-agree the route onto an investment or long-income term loan, or a sale, once the scheme is let. We frame every figure as indicative and never as an offer; the terms depend on the scheme, the care provider and the lease.

What lenders assess on a scheme reaching income

Lenders underwrite a supported living scheme on the strength and registration of the care provider taking the lease, the lease structure and its index-linking, the route to placing tenants and drawing the income, and the gap between day-one and stabilised value, then size against loan to value, the contracted income and interest cover. They want a credible registered provider and a clear path to a let, income-producing scheme, because the long index-linked lease and the provider covenant are what underwrite the loan and the exit. Private capital appetite for the Living sector is strong, which deepens the pool of long-income lenders and buyers, but the route to income is the key risk before the lease is live. As a broker with no exclusive tie, we present the provider and the lease honestly and place the case with the lender most comfortable with supported housing. We arrange the finance; we do not lend, and we are not FCA-authorised because this is unregulated commercial lending.

From completion to a contracted income

A supported living scheme's exit rests on reaching a let, income-producing state, after which it refinances onto investment or long-income debt or sells. Because the sector is data-poor and not separately broken out, the relevant evidence is the Living sector backdrop, about £3.2bn of UK Living investment in Q3 2025, up 60% quarter on quarter (Knight Frank), and £4.3bn in the first half of 2025 (CBRE), plus strong private-capital appetite on a demand and supply imbalance, index-linked rents and ESG credentials. A long index-linked lease to a strong registered provider prices close to long-income property once it is live. Once the scheme is let, we term out the bridge onto a senior investment or long-income loan sized on the contracted income, or arrange a cash-out refinance to release equity. For a stabilisation lender, that clear route from completion to a contracted, refinanceable income is what supports the loan on day one.