How Prem Property helped the owner of Havering Mansion; a substantial five-bedroom freehold in the London Borough of Havering; unlock a guaranteed rent of up to £8,000 per calendar month through a long-term commercial lease for children’s supported living.
Havering Mansion is a generous, freehold detached property situated in Aveley Ring, Romford, within the London Borough of Havering. The property had served as a much-loved family home and benefits from a rare combination of spacious indoor living and substantial outdoor amenity space, a configuration that makes it exceptionally well suited for children’s residential care use.
The house comprises five bedrooms (three with en-suite facilities), multiple communal and leisure rooms including a cinema room, gym, library, bar room, and two reception rooms. The grounds include a side annex, ideal for a live-in support worker, as well as outdoor access to a football pitch, tennis courts, and adjacent woodland. The property is debt free and held as a long-term investment asset.
The property had outgrown its original purpose as a family home, yet its size and specification made a straightforward residential let or HMO an inefficient use of the asset. The owner was seeking a truly passive income stream — one that would remove the burden of day-to-day management while generating returns commensurate with the property’s scale and potential.
The owner had a working knowledge of the care and support sector but was unfamiliar with the commercial leasing process for children’s residential care homes — including Ofsted registration requirements, C2 planning use class, and how to identify and vet compliant care providers. They needed a specialist partner to guide them through this process from start to finish.
“It’s got a cinema room, a gym, a toy room and there’s open land, too. I just thought it was a safe, secure space for children. And putting that aside, obviously I could see there’d be much better returns from leasing it this way.”
Prem Property operates as a specialist intermediary — connecting landlords and developers with regulated care providers and local authorities across the UK. Rather than acting as the provider itself, Prem Property matches properties to the right provider partner through its established network, and manages the entire commercial leasing process on the landlord’s behalf.
For Havering Mansion, Prem Property identified children’s residential care as the optimal use case. The property’s layout, communal spaces, outdoor access, and location within a London borough made it an immediately compelling proposition for nationwide registered providers. The team outlined a structured five-stage process to bring the property to market efficiently and professionally.
Lease length | 10–15 years (proposed at 10 years initially) |
|---|---|
Monthly rent | £6,500–£8,000 PCM (marketed at £8,000) |
Rent structure | £2,500 for first child + £1,000 per additional child (up to five) |
Break clause |
Minimum four years before either party may exercise |
Rent review | Aligned to break clause point (year four) |
Inflation protection |
Annual CPIH uplift (approx. 2% per year) |
Deposit | One month’s rent (with flexibility for established providers) |
Lease type | FRI (Full Repairing and Insuring) — repairs covered by provider |
Prem Property fee | One month’s rent (lease arrangement); 8% PCM if management taken |
To position Havering Mansion competitively and satisfy both Ofsted requirements and provider expectations, Prem Property identified a small number of enhancements that would meaningfully strengthen the property’s offering ahead of marketing.
Install fire doors and HMO-compliant safety measures. The property has not previously been operated as an HMO. Fire doors and appropriate smoke detection upgrades will be required to meet the safety standards expected for a children’s residential care home.
Obtain C2 planning consent. A change of use from C3 (residential) to C2 (residential care) will be required. Prem Property will introduce a planning consultant to guide the application, with the provider’s experience of the Havering planning authority used to strengthen the submission.
By the close of the onboarding call, Havering Mansion had a clearly defined commercial strategy, agreed terms in principle, and a concrete next-step plan. The letter of engagement was issued the same day, with marketing to commence upon signing.
For the owner of Havering Mansion, the process offered a clear, low-effort route to converting an underutilised family home into a long-term, inflation-linked income stream — while simultaneously providing a safe, well-resourced environment for vulnerable children in the London Borough of Havering.
Prem Property works with landlords and developers across the UK to unlock guaranteed rent through long-term commercial leases for supported living, children’s residential care, and temporary accommodation. If you own a substantial property that is no longer meeting its potential, our team can assess its suitability and guide you through the entire process — from onboarding to lease completion.
Book a no-obligation onboarding call with a Prem Property specialist to find out what your property could achieve as a long-term children’s care asset.
