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Latest Property News, Industry Insights and Company Announcements.

Latest Property News, Industry Insights and Company Announcements.

May 11, 2024

Being a landlord in 2024 isn’t as easy as it once was. There are several challenges facing property investors today. Here are five reasons why being a landlord just isn’t what it used to be: In light of these challenges, many investors are diverting their attention away from traditional buy-to-let... Keep Reading

May 7, 2024

The UK property market has undergone significant diversification in recent years, particularly with the emergence of assisted living investment properties. Historically, property investment primarily revolved around buy-to-let residential or commercial properties. However, commercial property investment was primarily the domain of pension funds and large investment firms, rather than individual investors... Keep Reading

May 7, 2024

Investing in Assisted Living Properties in the UK presents a lucrative opportunity for savvy investors seeking to diversify their portfolios while making a positive social impact. Our Assisted Living investments cater to socially conscious investors, providing a unique avenue for financial growth and community enrichment. Understanding Assisted Living Properties: Assisted... Keep Reading

January 18, 2024

Navigating the labyrinth of real estate investment can be daunting, especially in today’s dynamic market. However, amidst this uncertainty, one sector is a beacon of stability and promise: Assisted Living Investments in the UK. It’s time to redefine our perception of senior living facilities. This thriving sector caters to a... Keep Reading

January 15, 2024

Real estate investing is like navigating an ocean of excitement and potential risks. The promise of consistent income and rising value attracts us, but hidden challenges like fluctuating markets and unexpected expenses are beneath the surface. Assisted living stands out as a stable sanctuary during financial turbulence, offering investors a... Keep Reading

December 14, 2023

Investing in Assisted Living facilities (ALF) is more than just a good portfolio diversifier—it’s a commitment to providing housing for vulnerable adults who require additional support in their daily lives. Not only does it offer the potential for financial returns, but it also has a significant social impact. At our... Keep Reading

December 7, 2023

Choosing the right location is often one of the most critical factors for property investors, and assisted living facilities are no exception. At Assisted Living Investments UK, we pride ourselves on staying as up-to-date as possible on the latest insights and trends so you can find your ideal investment. Our... Keep Reading

December 1, 2023

Who is assisted living for? Investing in assisted living facilities to diversify your portfolio goes beyond locations catering to older adults. The demographic eligible for this type of housing support is wide-ranging, encompassing a diverse group of vulnerable adults dealing with daily living challenges. This shift in perspective sheds light... Keep Reading

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FAQs

What is supported living?

Supported living services enable people with a range of needs to live happy and fulfilling lives, independently and safely in their local communities. When a person goes into supported living, they have their own home with their own tenancy agreement. At the time, they receive support and care which can range from a few hours a week to one-to-one care 24 hours a day. Many people with learning disabilities, severe autism and other needs, require some level of support, so that they can maximise their independence and live the life that they choose. A supported living service can help if someone who does not want to live in residential hospice care but would find it difficult to cope on their own at home. Supported living helps people to make choices about how they want to live and allows them to keep doing the things that are important to them.

Yes, many of our investors are from outside of the UK and are looking for a secure income generating asset in the UK. Non-UK residents are required to complete a simple Non-Resident Landlord form (NRL1) to register their ownership and income with HMRC. Our after-sales team is on hand to assist with this process.

Yes, many of our clients choose this option should it suit their portfolio requirements. We can assist with recommending a company to assist and guide you through the process of setting up a limited company. The process is efficient and can be completed within 3 working days.

There are restrictions on selling within the first 36 months. Thereafter, Yale Housing Association needs to be informed. This is performed by the seller’s legal representative.

A growing demand and shortage of property in the market will remain a fixture for the foreseeable future. The local authorities are bursting at the seams with vulnerable adults being housed in hospitals, hostels and hotels, which is costing the government an inordinate amount of money whilst simultaneously failing the vulnerable adults by providing them with inadequate care.

Occupancy levels in this industry remain at 100%. At the time of writing there is a queue of over 600 vulnerable adults awaiting accommodation with Yale, the community benefit society responsible for housing these vulnerable adults.

Yes, The Investment Room will be releasing several supported living developments, located mostly in the north of England.

No the tenancy agreement does not allow self-use. It is unlikely that an investor would want to self use after the lease agreement expires and walk away from such a high income whilst living in a development filled with vulnerable adults, unless they themselves had become vulnerable. Professionally speaking that would be the only exception.

There is no VAT applied to the purchase.

At any point after three years, owners may sell their property through a plethora of available channels. A strong secondary market for supported living accommodation exists in the UK and a large number of housing associations, charities and niche supported living (SL) resellers are actively pursuing SL accommodation.

Stamp Duty Land Tax (SDLT) applies to all buyers, irrespective of location, and is payable upon completion. Overseas investors will pay 5%.

The buyer will pay any income and CGT taxes due. There is no Council Tax payable.

Overseas investors should complete a non-resident landlord NRL1 form with HM Revenue & Customs, which will enable all returns to be paid in full. Without the NRL form, payments may be subject to a 20% withholding for tax purposes.

Yes, this can be arranged upon request.

Generally speaking, investing in SL is no different from investing in any other property. Tax implications are personal on a case by case basis and depends on the purchaser’s tax position. Please seek advice from a UK tax advisor for confirmation.

All properties are only marketed and sold once completed, furnished and with a signed tenancy in place.

Yale Housing Association is responsible for insuring the property.

Since Supported living property is classified as a quasi-residential property, the capitalization (or income) approach is used to determine the value. Typically supported living properties will at least double in value every 10 years.

There is insurance in place by the developer and also the tenant in the form of an FRI lease (Fully Repaired and Insured lease). Flood damage for example is covered. The building structure is covered etc.

Watsons Property Management Glendevon House, 4 Hawthorn Park, Leeds LS14 1PQ T: +44 (0)113 273 8788 W: watsonpm.co.uk

The property can be sold at any time after 36 months, which is when the buy-back agreement expires.

The yield is a percentage and is calculated by dividing the annual rent payable by the purchase price. The yield in this example is 10.00%. For example, with a property purchased for £175,000, the annual rent is £17,500. If this supported living property is purchased by an institution in an aggregated deal at a yield of 3.25% then the value of the property would be uplifted to £538,461.538 (£17,500 divided by £538,461.538 = 3.25%). This would result in a value increase to £363,461.54 which would then be shared in the manner explained above. The 30% increase is paid direct to the buyer, then any overage is split 50/50 between the owner and developer. In this example the owner would receive the initial increase of 30% at £52,500 and then 50% of the remaining overage: £155,480.76. Thus, bringing the owners’ total profit to £207,980.77.

The 25-year management agreement means that the property can be commercially valued against the yield, as a result they are worth at least the value of the sale price. If equated, a recent valuation of a property in a similar deal shows units valued at a 7% yield, bringing the property bought for £175,000 to a sale price of £185,714.

The freeholder of the building is the developer (TIR), who are currently and will continue to be responsible for maintaining the buildings externals, such as the roof.

The head lease holder is the developer, The Investment Room and The Letting Room (TIRTLR Ltd).

Yale Housing Association – a charitable not-for-profit Community Benefit Society company who provide safe supportive and sustainable housing to vulnerable adults. Their supported accommodation is for people who need care and supervision in order to manage their tenancies.

  • The whole process should take no more than 28 days.
  • Reservation form submitted and a reservation deposit is paid.
  • Buyer prepares AML documents – one photo and one address proof.
  • A Memorandum of Sale is sent to all parties involved and their legal representative.
  • Contract documentation issued to buyer’s solicitor within 72 hours.
  • Buyer’s solicitor conducts AML check – will be done virtually through Thirdfort.
  • Lawyer completes conveyance process of local searches etc.
  • Contract pack and report issued to buyer with a report and request for source of funds.
  • Buyer signs contract documents and sends funds.
  • Exchange and completion can take place simultaneously.
  • Hand over to Yale. Returns are generated immediately and paid monthly in arrears on the first day of each calendar month.
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We’re the UK’s leading specialist Assisted Living Investment provider and we help investors gain great returns while having a positive social impact.

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