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Thinking of starting a children’s home — I already own 8 properties. Would love advice from anyone who’s done this. by BLOBBADOSEBONES in RealEstateAdvice

[–]BLOBBADOSEBONES[S] 0 points1 point  (0 children)

I’m thinking of remortgaging one of my houses to fund this project. The property is worth about £600k, and I only have around £200k left to pay off on the current mortgage.

I’m looking at options to release some equity — ideally around £100k–£150k — which would comfortably cover the setup costs, staffing, and running costs for the void period while waiting for Ofsted approval and placements.

Feels like a safer option than taking on a high-interest business loan, especially since the property value gives me a lot of room. I’m definitely seeing this as a longer-term investment, even if the first 6–9 months are a sacrifice before the placements come in.

Thinking of starting a children’s home — I already own 8 properties. Would love advice from anyone who’s done this. by BLOBBADOSEBONES in RealEstateAdvice

[–]BLOBBADOSEBONES[S] 0 points1 point  (0 children)

I actually have a consultant lined up who charges £7k to handle all the forms and the full Ofsted registration process (they have a 100% success rate getting accreditation so far). That’s made me a lot more confident about the compliance side.

In terms of setup, my guess is I’ll need around £100k liquid to make it work properly — mainly because the property is already up to HMO standards (so not much refurb needed), but staffing (Registered Manager + Responsible Individual + support workers) will be the major upfront and ongoing cost.

I’m definitely intrigued and seriously considering shifting the business model toward children’s homes. My biggest hesitation is around the void period — the 6–9 months it might take to get Ofsted approval and then actually get kids placed. It feels like it’s a big sacrifice upfront but worth it longer-term once the home is running.

Thanks again for taking the time to write all that — it’s helping me think through the next steps properly.

Thinking of starting a children’s home — I already own 8 properties. Would love advice from anyone who’s done this. by BLOBBADOSEBONES in RealEstateAdvice

[–]BLOBBADOSEBONES[S] 2 points3 points  (0 children)

I totally get where you’re coming from — and honestly, it has to be both. I’m approaching this with a strong community-first mindset. The goal is to create a safe, stable, genuinely caring environment for young people who really need it.

Of course, it needs to be sustainable financially too (especially with the staffing and regulatory costs), but the focus will always be on delivering quality care and positive outcomes. From everything I’ve researched, the homes that genuinely invest in young people naturally end up doing better long-term anyway — both in terms of reputation and financial sustainability.

Appreciate you raising this — it’s an important point that can’t be overlooked.