Care property deposit and LTV calculator
Enter the price and loan to value to see the loan, the deposit and the deposit as a percentage of the price.
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Illustrative only. Not a quote or advice. Not an offer of finance.
How the care property deposit and LTV calculator works
We take the property price and your chosen loan to value to split the purchase into a loan and a deposit. The loan is the price multiplied by the loan to value. The deposit is whatever is left, which is the price minus the loan. The deposit percentage is simply one hundred minus the loan to value, so a 70 percent loan to value means a 30 percent deposit.
The formula is loan equals price multiplied by loan to value divided by one hundred. The deposit equals price minus loan. The deposit percentage equals one hundred minus the loan to value. There is no interest or term involved here, so the result holds whatever rate you eventually agree.
Why loan to value matters on a care or supported living asset
Loan to value drives both the cash you need on day one and the rate a lender offers. Lower loan to value means a smaller loan, a larger deposit and usually a sharper rate, because the lender is more comfortable. Most care and supported living deals land between 60 and 70 percent loan to value, with established care homes carrying strong EBITDARM and mature occupancy, or supported living on a long registered provider lease, supporting the top of the range. If you want to model the monthly cost as well, use our commercial mortgage calculator.
Worked example
On a 1 million pound care home at 70 percent loan to value, the loan is 700,000 pounds and the deposit is 300,000 pounds, which is 30 percent of the price. Drop the loan to value to 65 percent and the deposit rises to 350,000 pounds. We are happy to look at the wider deal and tell you which loan to value is realistic for your asset and its trading figures or lease. This is illustrative only and not an offer of finance.
Care property deposit and LTV calculator: common questions
How much deposit do I need to buy a care or supported living asset?
On most care and supported living mortgages the deposit is around a third of the price, because lenders typically fund 60 to 70 percent of the value. On a 1 million pound asset at 70 percent that is a 300,000 pound deposit. Adjust the loan to value in the calculator to see how the deposit changes.
What is loan to value on a care or supported living asset?
Loan to value is the loan as a percentage of the price or valuation. On a care home the valuation usually reflects the going-concern trading business, including EBITDARM and occupancy, not just the building. On supported living it reflects the long lease and the registered provider covenant. A 70 percent loan to value on a 1 million pound asset is a 700,000 pound loan and a 300,000 pound deposit. Lower loan to value usually means a better rate, because the lender carries less risk.
Can I borrow more than 70 percent on a care or supported living asset?
Sometimes. An established care home with a long trading history, mature occupancy and strong EBITDARM can support the top of the range, and supported living on a long index-linked registered provider lease can too, with additional security lifting the figure further. A newer care home still building occupancy usually sits lower. Send us the deal and we will give a realistic view.
Want a real view on your deposit?
Send us the asset and we will come back with a view on fundability and likely loan to value within one working day.