How Prem Property helped the owner of Havering Mansion, a substantial five bedroom freehold property in the London Borough of Havering, secure guaranteed rent through a long term commercial lease for children’s supported living.
How Prem Property helped the owner of Havering Mansion, a substantial five bedroom freehold property in the London Borough of Havering, secure guaranteed rent through a long term commercial lease for children’s supported living.
The property had outgrown its original purpose as a family home, yet its size and specification meant that a standard residential let or HMO would not make full use of the asset. The owner was looking for a genuinely passive income stream that would reduce the burden of day to day management while generating returns that better reflected the property’s scale and potential.
Although the owner had some knowledge of the care and support sector, they were unfamiliar with the commercial leasing process for children’s residential care homes. This included understanding Ofsted registration requirements, C2 planning use class and how to identify and assess suitable care providers. A specialist property partner was therefore needed to guide the owner through the process from initial assessment through to securing the right provider and lease structure.
“The property has a cinema room, a gym, a toy room and open land. I felt it could provide a safe and secure environment for children. From an investment perspective, I could also see the potential for stronger returns by leasing the property in 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 | Long-term, typically between 10 and 15 years | Rent review | £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 |
Under an FRI lease, the provider assumes responsibility for the cost of repairs and maintenance throughout the lease term, leaving the owner responsible only for building insurance. This structure is particularly advantageous for landlords seeking a genuinely low-effort, long-term income stream.
For terms and figures specific to your property, contact Prem Property directly for a no-obligation assessment.
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.
A potential loft conversion was also considered but deemed non-essential, given the existing volume of communal and leisure space throughout the property. This may be revisited as a provider-led decision following lease completion.
By the close of the onboarding call, Havering Mansion had a clearly defined commercial strategy, terms agreed in principle, and a concrete next-step plan. The letter of engagement was issued the same day, with marketing set 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.
Whether you are a landlord looking to secure a long term care lease, a care provider searching for suitable property or an investor looking to build a C2 property portfolio, Prem Property can help you take the next step.
Share your property details with our team to explore its suitability for children’s care.
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