April mastermind highlights
Our first ever members mastermind set the standard as a highly educational and interactive event. We heard from Gateway founders as well as one of our members, William Bennett, who shared details of a really exciting supported living development in Reading. Our friends at Signature finance kicked off their monthly spot with us providing an update on property finance for supported living. Here are some key highlights from the event.
Case study development with William Bennett
William talked us through a brilliant development he’s currently working on in Reading. After starting his career in engineering and then moving into marketing, William has been a full-time property developer for the past four years and has now completed 17 projects with a total value of around £7.5m. He was introduced to Supported Living Gateway by Mark and Leah Bowen.
The project is a conversion from an old industrial unit to a residential block of five one bed flats. The site has a great location ten minutes from the town centre but came with many complex challenges including asbestos, a party wall with Tesco, a long thin site and really tight access.
The build is now nearing completion and looks fantastic. It incorporates some of the original industrial feel with high ceilings and exposed steelwork with a really modern aesthetic.
By listing the development on The Gateway, William was able to find a Supported Living care provider who is interested in leasing it for tenants with learning disabilities. This gives William a secure exit for his development, meaning he can refinance on the strength of the lease and gives him a secure long term rental income.
- Engage with care providers and the Council at an early stage to identify local requirements (as they are different in different areas)
- Define who the end users are and what facilities they require
- Define the care delivery model eg floating care/full time care and ensure facilities are included
Monthly finance update
Craig Adams from Signature Finance talked about finance for supported living properties. They have seen a massive growth in this area over the last 12 months as it appeals to clients looking for a hands-off ethical investment with guaranteed income and no rental voids.
Pros and cons of investing in supported living properties
- No voids
- Hands off investment
- Physical contract value
- A way to support your local community
- Still a very niche market with limited lenders (but new ones are coming on the market)
- Higher rates
Do's and Don'ts
Don’t breach your mortgage by using a normal buy to let or HMO product as you’ll run into problems when you re-mortgage (and the right product is generally only 0.25% more)
Don’t forget insurance (you’ll need a specialist lender)
Tell your mortgage broker how the building will be used so they can source the right product and not waste time and money getting the wrong valuation
Make sure you have multiple exit plans to reassure lenders
Supply the lease agreement upfront so it can be checked by the broker
All Gateway members get £100 off the broker fee with Signature Finance who are mortgage brokers specialising in supported living products. Make sure you tell them you're a member if you get in touch.
Our masterminds are members only events that take place on the third Thursday of every month. They are peer to peer sharing sessions that provide specialist updates and education for property developers who are interested in supported living. To see all investor member benefits click here.