Acquiring a property for use as a children’s home
When acquiring property for use as a children’s home, there are several key points to consider.
Planning Considerations
Buyers intending to acquire a property for use as a children’s home may require planning permission:
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Use Classes
Understanding the use classes (C2 or C3) as defined by planning regulations is crucial for determining planning permission requirements. Regulations distinguish between care homes for adults and children’s homes.
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Local Council Policies
Councils have varying policies regarding children’s homes. These policies can address parking, need for the home, loss of housing, character of the neighbourhood, and accommodation quality. It’s essential to be aware of these policies before submitting a planning application.
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Need for Planning Permission
Not all cases require planning permission. If the change of use from a dwelling house is deemed non-material, a Lawful Development Certificate might be obtained from the Council instead of a full planning application.
Additional Planning Considerations
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National Space Standards
These standards are often applied by Councils to minimum bedroom sizes and amenity/garden space for children’s homes.
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Management Statement
Including a statement outlining staff shift management and visitor protocols can help address potential concerns from neighbours as neighbour objections highlighting increased footfall and parking are often raised.
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Location
Parking is a major consideration so be aware of both on site and off site availability at the home.
Title and transaction considerations
When acquiring a property regardless of whether it is an existing children’s home or not, there are further considerations that must be considered:
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Freehold or Leasehold
Be aware of how the property is held. Generally, freeholds give purchasers more freedom as they will own the property outright. With leaseholds, the property is ultimately owned by a landlord and there will likely be restrictions under the lease.
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Restrictions on title
There may be restrictive covenants on the title that could restrict its use or grant rights over land which may have potential safeguarding issues.
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Access
One of the primary considerations is sufficient access to the property and whether there is any element of shared access.
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Future development
If any expansion or development is planned, regard will need to be had to any restrictions on the title or the lease.
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Lender involvement
If there is already a charge on the property being acquired, an incoming lender may require a deed of release alongside normal discharge forms.
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Stamp Duty
If a company is acquiring the property this can lead to the higher rate being paid.
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Chain
Residential properties generally have a chain involved so buyers must be aware of this for timescale planning.
Other considerations
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Charity
If the provider is a charity or intends to set up a charity there are additional considerations. Whilst acquisitions do not require a charity surveyors report, trustees still have fiduciary duties to comply with.
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Education
If the provider intends to open a secure children’s home/school there are additional requirements and they must consult the Department for Education or the Ministry of Justice as they require Secretary of State approval for the opening of a secure home/school. More guidance can be found on the Government’s website
A practical example
RWK Goodman recently acted for a provider in obtaining a home. There were some significant property challenges to overcome. The title included an old covenant stating the property could not be used for a trade or business. Given the children’s home would receive funding from the local authority, it could be classified as a business.
We obtained a bespoke indemnity policy which had to be agreed by our client’s lender who also required additional documentation to deal with the existing charge on the property.
How we can help
We have extensive experience in acting for providers looking to acquire sites for Children’s Homes. We can support you in navigating:
- Acquisition of sites or existing homes
- Employment law
- OFSTED and CQC Registration compliance and troubleshooting
- Title reports and resolving title issues
- Construction and Planning
- Specialist charity and education advice
