Care property deposit and LTV calculator
Enter the price and loan to value to see the loan, the deposit and the deposit as a percentage of the price.
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Illustrative only. Not a quote or advice. Not an offer of finance.
How the deposit and LTV calculator works
We take the property price and your chosen loan to value to split the purchase into a loan and a deposit. The loan is the price multiplied by the loan to value. The deposit is whatever is left, which is the price minus the loan. The deposit percentage is simply one hundred minus the loan to value, so a 70 percent loan to value means a 30 percent deposit.
The formula is loan equals price multiplied by loan to value divided by one hundred. The deposit equals price minus loan. The deposit percentage equals one hundred minus the loan to value. There is no interest or term involved here, so the result holds whatever rate you eventually agree.
Why loan to value matters on a care or supported living asset
Loan to value drives both the cash you need on day one and the rate a lender offers. Lower loan to value means a smaller loan, a larger deposit and usually a sharper rate. Most supported housing deals land between 65 and 75 percent, with a long lease to a strong housing association supporting the top of the range. Our strong advice is to run this calculator twice: once on the price you are paying, and once on what the property is worth as an ordinary home with vacant possession. The gap between those two answers is the risk you are carrying, and often the equity you will actually need. If you want to model the monthly cost as well, use our commercial mortgage calculator.
Worked example
A supported living house is marketed at 220,000 pounds on its lease. At 65 percent loan to value that implies a 143,000 pound loan and a 77,000 pound deposit. But the lender values it at 165,000 pounds with vacant possession, so it lends 65 percent of that, roughly 107,000 pounds, and the deposit is really 113,000 pounds. That difference is rarely on the brochure and it is the single most useful number to establish before you offer. This is illustrative only and not an offer of finance.
Care property deposit and LTV calculator: common questions
How much deposit do I need to buy a care or supported living asset?
On most care and supported living mortgages the deposit is around a third of the price, because lenders typically fund 60 to 70 percent of the value. On a 1 million pound asset at 70 percent that is a 300,000 pound deposit. Adjust the loan to value in the calculator to see how the deposit changes.
What is loan to value on a supported living asset?
Loan to value is the loan as a percentage of the valuation, and on supported housing the word valuation is doing a lot of work. A lender may capitalise the lease rent, which produces the investment value, or ignore the lease and value the property as an ordinary home, which produces the vacant possession value. Those can be very different figures. A 70 percent loan to value on a 1 million pound valuation is a 700,000 pound loan and a 300,000 pound deposit, but if the lender uses a 750,000 pound vacant possession figure instead, the loan is 525,000 pounds and the deposit is 475,000 pounds.
Can I borrow more than 70 percent on a supported living asset?
Sometimes. Stock let on a long index-linked lease to a substantial housing association can reach 75 percent, and additional security can lift it further. A short lease, or a small lease-based provider with thin accounts, sits well below that and may be sized on vacant possession value instead. Send us the deal and we will give a realistic view.
Want a real view on your deposit?
Send us the asset and we will come back with a view on fundability and likely loan to value within one working day.