Direct Answer: Prem Property partnered with a private property investor to transition a newly refurbished development in Woolston, Southampton, into a highly sought-after “core and cluster” Children’s Residential Care facility. By navigating outdated C2 planning restrictions and orchestrating a competitive bidding process, Prem Property structured a 15-year Fully Repairing and Insuring (FRI) commercial lease targeting up to £18,200 PCM. This secured a 100% hands-off, void-free income stream, fulfilling the landlord’s deeply personal mission to build an enduring financial legacy for her young family.
Behind every property transaction is a human story, but this particular case study represents one of the most profoundly purpose-driven investments Prem Property has ever facilitated. The owner of this Woolston asset is a dedicated mother and property investor who recently received a terminal cancer diagnosis.
Initially given three years—which rapidly progressed to a prognosis of just weeks—her immediate priority shifted entirely to securing the long-term future of her two young children. Rather than selling the asset and watching the capital erode through taxes and inflation, she sought a completely hands-off, guaranteed rental model.
“Initially, the property was bought so that when I am no longer here, my children have some sort of financial support. Whoever takes them in—a family member or guardian—won’t have to worry about the financial aspect of raising two young children. It is much easier for family to take on guardianship when there is no financial loss to them. Selling wasn’t an option; we needed long-term, secure rent.” — Southampton Portfolio Investor & Mother
When connecting with Ronaldo Hare, Founder of Prem Property, the alignment was immediate. Beyond real estate, Ronaldo leads the Men’s Prosperity Club and collaborates with the Samaritans to support mental health awareness—a topic that hit close to home for the developer. Having experienced the pressures of the building trade firsthand, the developer was drawn to Prem Property’s core philosophy: using bricks and mortar to drive real social impact, rather than chasing purely transactional gains.
Location: Woolston, Southampton.
Asset Type: A “Core and Cluster” scheme. The site features a 6-bedroom detached HMO (the core) and separate self-contained flats in the rear extension (the cluster).
Condition: The property was previously a derelict nursing home that closed in 2020. The landlord and her development partners executed a high-specification refurbishment, installing a new roof, modern electrics, heating, and luxury en-suites.
The Core Challenge: Securing a reputable care provider on a 10- to 15-year FRI lease to ensure maximum covenant strength and zero void periods.
Prem Property acted as the exclusive commercial advisor, bridging the gap between the landlord and our network of vetted care providers. We identified that the property’s unique layout was perfectly suited for a highly in-demand care model:
We positioned the 6-bed HMO as the "core" for younger children with emotional and behavioural needs, while the self-contained rear flats served as the "cluster" to foster independence for care leavers (aged 16+). This dual-use model is incredibly attractive to top-tier providers.
Agreed in principle to a 7-year lease at an indicative £6,500 – £8,000 PCM, complete with 4-year break/review clauses linked to CPIH inflation indexation to safeguard capital value.
Structured a 6-year purchase option for the care provider, calculated using an average of three independent commercial valuations minus a 10% loyalty discount.
Repositioning a derelict nursing home into a modern children’s care facility presents unique regulatory challenges. Prem Property proactively managed these friction points:
Outdated C2 Planning Restrictions: While the property technically held C2 (Residential Institutions) use class status from 1989, it was explicitly tied to a nursing home. Prem Property introduced specialist planning consultants to review and update the permissions, ensuring there were no restrictive age clauses that would block Ofsted registration for a children’s home.
Operational Logistics: The layout required careful assessment, specifically regarding communal laundry access for the HMO and self-contained flats. We provided high-level advisory on incorporating compliant kitchenettes and utility spaces to satisfy provider safety requirements without sacrificing rental yield.
Community Integration: Situated in an area with a large elderly demographic, there were concerns regarding “Not In My Backyard” (NIMBY) pushback. By securing an established, highly regulated care provider, we ensured the community that the property would be professionally supervised 24/7.
Performance Metric | Standard Residential Let | Prem Property Guaranteed Solution |
|---|---|---|
Gross Monthly Income | Fluctuating market rates | £13,700 – £18,200 PCM |
Occupancy & Void Risk | Subject to voids and arrears | 100% Guaranteed Rent |
Lease Structure | 6 to 12-Month ASTs | 15-Year Commercial FRI Lease |
Management Friction | High (Direct tenant management) | 0% (Fully Maintained by Provider) |
Social Impact | Standard housing | High (Provides C2 Children’s Care) |
This transaction goes far beyond bricks and mortar. By professionalising the lease arrangement for this high-spec Southampton property, Prem Property helped secure a 15-year financial safety net for a family facing unimaginable circumstances. Simultaneously, the arrangement unlocks a premium “core and cluster” facility that will provide safety, independence, and care for vulnerable youths for over a decade.
Whether you are a purpose-driven investor securing your family’s financial future or a developer seeking hands-off, guaranteed commercial income, we can transform your property into a high-yielding social asset.
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