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Full Description

Shanklin is our latest addition to our care home portfolio, ideally located in a popular seaside resort in the Isle of Wight. The Shanklin is made up of three floors, comprising of 26 luxurious single and double ensuite units across the second and third floors. 10 ensuite units benefit from sunny balconies and scenic views towards the sea and beach. The ground floor also benefits from elegant communal areas for residence to; relax, socialise and fine dine.
 
Alongside the communal areas offering a capacity for 60 plus guests, Shanklin is also perfectly located between the sandy beach and Shanklins’ Old Village.
 
Shanklin will undergo a significant internal remodelling and refurbishment, with premium quality furnishings, fabric, prints and accessories. The vibrant fully furnished interiors are designed to create a unique space for later life.

The leaseholds of individual care studios within the development portfolio can now be purchased by investors at a discount on their full retail price. Once purchased, the developers will lease-back the care studio from you for a price equal to 10% net for the following 10 years.
 
When the developers have a resident for your care studio, they will buy it back from you for 10% net premium (guaranteed for 10 years) on your initial investment, giving a quick, healthy return on investment. They also offer a 110% buy-back from exchange, or 125% buy-back in year 10, in the unlikely event that they haven’t sold the studio to an end user by then.

When the luxury refurbishment works are done, each property is relaunched with comprehensive regional online/offline marketing campaigns, and operated by an experienced care services business, 5 Star Care Home Management. With their luxurious interiors and premium-level fees, the care communities are clearly positioned as the premier care accommodation within their region, and targeted at self-funding, high net worth individuals and couples who can choose to either lease of buy their care studio.
 
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Shanklin Care Community - Investment Options For Investors 
Investors can purchase the leaseholds of individual care studios within our development portfolio at a 30% discount on their full market price. On completion, investors can choose one of three ways to receive their income:
 
Option 1: Investor as Landlord
Receive rental income based on the studio’s market rate, with a developer’s cash-back (3% of purchase price) on completion to cover the period of refurbishment works. Rental income will then be paid when the studio is occupied.
 
Option 2: Managed Service
Receive a 10% fixed monthly income by using a lease management company, such as our preferred supplier Care Home Freehold Ltd. This will safeguard income regardless of whether the studio is occupied or not. The same developer’s 3% cash-back is paid during refurbishment works, and the investor will pay the managing agent a one-off fee of 25% of the total annual rent to cover legal, admin and maintenance fees.
 
Option 3: Self Occupancy
An investor may choose to pay the full market price for the studio, either for their own use or for a family member (T&Cs and eligibility criteria apply).
 
Investors can choose to swap between these options at any time (T&Cs apply).
 
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Shanklin - Investment Highlights
- Increasing demand for luxury care home accommodation 
- Option For 10% rental returns guaranteed for 10 years
- Monthly rental income payments
- Hands free investment, fully managed
- 125-year lease
- 110% buy back guarantee from exchange
- 125% buy back guarantee in year 10 
- Extremely high demand within local area
- 24/7 concierge service
 
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The Exit Strategy
Key to the appeal of the Rosewell care home investment is its clearly defined exit strategy, which allows investors to exit the investment with a guaranteed increase of 10% on top of the original unit purchase price. This buy back option is key to the strategy of the developer, and as such they are motivated to purchase the unit back from the investor within a short to medium time frame.
 
Buy Back Options 
From exchange of contracts - 110% (end user purchase) 
From Year 5 - 110% investor option 
From Year 10 - 125% investor option
This buy back option is exercised by the developer when they sell the unit on to the end user (tenant).
 
A working example of a typical investment is included below:
 
Stage One: 
Investor purchases care home unit for reduced price of £76,965
 
Stage Two: 
From exchange of contracts, the investor starts to earn 10% net rental income, paid monthly.
 
Stage Three: 
Although the developer can purchase the unit back at any point after exchange of contracts (for a guaranteed 10% increase on the investor's purchase price), we have used an example time frame of 12 months below:
12 months’ rental income at 10% = £7,696.50 already received 
plus
Original purchase price of £76,965 + 10% uplift = £84,661.50
£84,661.50 plus £7,696.50 = £92,358.00 total, a return of 20% in twelve months.
 
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Why Invest In Care Homes?
Residential care home sector is currently worth £15.9 billion and is currently struggling with the high demand of elderly people needing home. For the first time the amount people in the age group over 60 (14 million) is now outnumbering the under 16 age group (11.5 million).
 
Between 2012-2032 the population of over 85s (the primary users of care homes) is expected to increase by 106%, and the total number of older people with care needs is expected to increase by over 60%. This would therefore mean there is growing demand for modern, fit-for-purpose care homes, funded by private investment.
 
The UK has an ageing population. The proportion of people aged over 65 has increased over the past 30 years – a trend that is predicted to continue. This trend will place added pressure on the UK’s health care, social care, housing and the economy.
 
According to the Office for National Statistics (ONS), the UK is at its oldest ever. In mid-2014, there were some 11.4 million people living in the UK aged 65 and over – making up 17.7% of the population, up from 11.1 million the previous year. The ONS predict a quarter of the population will be over the age of 65 by 2044. Furthermore, the number of people aged 75 and over has increased by 89% over the period, now making up 8% of the population.

Key Information

Property ID: 27895995
Location: United Kingdom, England, Isle of Wight, Shanklin
Categories:
  • Room
  • Room
Bedrooms: 0
Bathrooms: 1
Price:
  • £85,400
  • €100,670
  • $109,210
Short Description:

Shanklin is our latest addition to our care home portfolio, offering 10% rental returns guaranteed for 10 years and multiple buy back options.

Marketed by


Hopwood House Limited