The London-based business challenger bank is now offering finance against select residential care properties on an investment basis. 

London-based business challenger bank Allica Bank is to offer new financing to support investors looking to buy or refinance care and nursing homes.

Introduced, it says, in direct response to feedback from customers and brokers, it is now offering finance against select residential care properties on an investment basis. 

This supports experienced landlords investing in residential care and nursing homes, as well as supported living and group homes, while also extending to properties let to local authorities or housing benefit-funded tenants under commercial lease structures.

“Healthcare remains one of the most resilient areas of the UK economy, underpinned by long-term demand for quality facilities to support our ageing population. By expanding our proposition to include residential investment, we are opening up more lending options for operators looking to invest and grow,” said Anthony Newman, senior specialist relationship manager for healthcare at Allica Bank. 

The challenger bank is pushing heavily into healthcare. In May, it increased its maximum day-one loan sizes and extended its maximum loan terms to up to 30 years.

In addition to increasing its maximum day-one loan sizes to £15 million for established healthcare businesses, the bank has also extended its maximum loan terms to up to 30 years for experienced healthcare operators and up to 20 years for first-time operators.