Day Nursery Mortgages

Quick answer

Can you get a commercial mortgage for a day nursery?

Potentially, yes. Lenders may consider a day nursery, pre-school or other childcare premises where the property, borrower, deposit and repayment case meet their criteria.

The right route depends on whether you will operate the nursery yourself, acquire an existing childcare business, refinance premises you already own or buy property to let to a nursery operator.

Nursery lending can require more explanation than a straightforward office or retail mortgage. A lender may examine occupancy trends, fee income, funded-hours income, payroll, management experience, inspection history, the ownership or lease structure and whether cash flow remains resilient after mortgage repayments.

The most useful first step is therefore not a generic rate quotation. It is a realistic review of the property, childcare business, borrower and evidence available, including any weaknesses that should be addressed before lenders are approached.

Mortgage routes

Different nursery plans need different finance explanations

Be precise about what is being purchased, who will occupy the premises and whether the transaction includes an operating childcare business.

Owner-occupied

Buying premises for your nursery

The case normally combines property suitability with the nursery’s current or projected trading performance, your experience, deposit and available working capital.

Business acquisition

Buying an established nursery

The purchase price may include property, goodwill, fixtures and other assets. Lenders need a clear allocation and evidence that the business can support the proposed borrowing.

Investment

Buying property let to a nursery operator

The tenant, lease, rent, repairing obligations, covenant strength, property value and alternative use may matter more than your own childcare experience.

Refinance

Reviewing an existing nursery mortgage

Current value, mortgage balance, equity, accounts, repayment history and the reason for refinancing help determine whether a remortgage or capital raise is realistic.

Expansion

Opening another setting or relocating

A lender may ask how management capacity, staffing, registrations, demand, fit-out costs and temporary cash-flow pressure will be handled across the transition.

Improvements

Funding refurbishment or additional capacity

Clarify the works, permissions, cost, programme, effect on trading and whether long-term property finance or a different short-term facility is more appropriate.

What lenders examine

Six questions that often shape a nursery mortgage decision

Commercial lending is assessed case by case. A credible application connects the property, childcare operation and finance structure rather than relying on headline turnover alone.

1

Is the property suitable for childcare use?

Location, access, outdoor space, room layout, planning and use, condition, capacity, security, parking and required works may all influence the valuation and lender choice.

2

How dependable is nursery income?

Historic occupancy, waiting lists, private fees, funded-hours income, local demand, seasonality, fee arrears and concentration across age groups help explain sustainability.

3

Can the staffing model support repayments?

Payroll, agency reliance, management cover, staff qualifications, ratios, recruitment pressure and owner drawings should be reflected in realistic affordability figures.

4

Does the operator have suitable experience?

Childcare, management and business experience, the leadership structure, safeguarding governance and plans for a new or acquired setting may be reviewed.

5

Are registration and inspection issues understood?

Registration route, inspection outcomes, improvement plans, ownership changes, planning, lease consent and any conditions affecting continued operation should be identified early.

6

Is the funding structure realistic?

Deposit or equity, valuation, goodwill, loan term, repayments, professional costs, refurbishment, working capital and a sensible downside allowance must fit together.

Checks outside the mortgage

Confirm childcare registration and inspection requirements separately

Registration and inspection arrangements depend on the setting type and UK nation. Mortgage approval does not confirm that a property or operator is authorised to provide childcare, so check the relevant requirements before relying on a completion date or future income.

England: register a nursery or other daycare
England: search Ofsted childcare reports
Scotland: register a care service
Wales: register a childcare or play service
Northern Ireland: childcare registration and inspection

Childcare regulation, registration, planning and inspection arrangements differ across the UK. Use the official route for the nation, setting and transaction concerned; mortgage approval does not establish regulatory approval.

Independent feedback

Check how clients describe the advice before choosing a broker

A nursery mortgage can involve a substantial commitment, confidential business evidence and a fixed purchase or refinance deadline. It is sensible to see how an adviser communicates and explains options before proceeding.

The link opens current Google results for Count Ready reviews, where you can find and assess feedback in context.

Find Count Ready reviews on Google
Ask for a nursery mortgage review

Prepare the case

Evidence that helps a nursery mortgage enquiry move forward

You do not need every document for the first conversation. Share what is available and identify genuine gaps so that lender feedback is based on the real case.

Borrower and management

Ownership structure and relevant experience.
Personal or company credit background.
Management team, responsibilities and succession plans.
Deposit source and available working capital.
Business plan for purchases, start-ups or expansion.

Nursery trading evidence

Latest accounts and current management figures.
Recent business bank statements.
Occupancy, capacity and waiting-list information.
Private-fee and funded-hours income split.
Payroll, agency, food, utilities and other main costs.

Property and transaction

Address, tenure, price or estimated value.
Planning and current-use information.
Floor area, outdoor space, condition and proposed works.
Registration or inspection information where relevant.
Heads of terms, target date and existing mortgage details.

Allow for the costs around the mortgage: valuation, legal work, tax, broker or lender fees where applicable, refurbishment, equipment, registration work, temporary disruption and working capital can all affect the cash contribution required.

How the review works

A clearer route from nursery plan to lender-ready enquiry

The aim is to identify material property, trading and affordability questions before a weak or incomplete application is submitted.

Explain the plan

Tell us whether you are buying, refinancing, expanding or investing, along with the premises, price or value, loan, deposit and deadline.

Sense-check the case

We review the property, childcare operation, borrower, accounts or projections, occupancy, deposit and obvious pressure points.

Compare realistic routes

Where the enquiry appears workable, we explain suitable options, likely evidence, costs and material conditions.

Prepare and progress

We help organise the application and remain involved through lender questions, valuation and the commercial mortgage process.

Helpful next reads

Continue with guidance relevant to your nursery plans

These pages cover owner-occupied property, deposits, preparation and commercial mortgage repayments. For a broader comparison across care homes, nurseries, healthcare premises and pharmacies, use the care-sector commercial finance guide.

Owner-occupied commercial mortgages

Understand borrowing for premises used by your own nursery or business.

Commercial mortgage deposits

See why the required contribution varies by property, borrower and lender appetite.

Document checklist

Prepare the borrower, trading and property evidence lenders may request.

Commercial mortgage calculator

Explore indicative repayments before asking for a case-specific lender review.

FAQs

Day nursery mortgage questions

Clear answers to questions nursery operators, business buyers and property investors often ask before approaching a lender.

Can I get a mortgage to buy a day nursery?

You may be able to get a commercial mortgage to buy a day nursery if the property, borrower, trading figures, deposit and repayment plan fit lender criteria. A lender will usually want to understand both the premises and the childcare business behind it.

Are day nursery mortgages specialist commercial mortgages?

They can be. Some lenders are comfortable with established trading premises, but a nursery often needs closer review because income, staffing, occupancy, regulatory context and property suitability can all affect the risk profile.

How much deposit might I need for a nursery mortgage?

There is no universal percentage. The contribution depends on the lender, property, borrower strength, valuation, loan purpose and trading evidence. A stronger case with clear accounts, reliable occupancy and good security may have more options than one with limited history or weak evidence.

Can a limited company buy nursery premises?

Yes, a limited company can be considered, subject to lender criteria. The lender may review company accounts, directors, ownership structure, trading performance, deposit source, credit history and personal guarantees where required.

Can a start-up nursery get a commercial mortgage?

A start-up may be considered, but the case usually needs a credible business plan, relevant operator experience, realistic occupancy and income assumptions, sufficient deposit and working capital, suitable premises and a clear route through registration and opening requirements.

Is finance different for owner-occupied and investment nursery property?

Yes. An owner-occupied case is normally assessed around the operator, nursery trading or projections and property together. An investment case focuses more heavily on the tenant, lease, rent, covenant strength, property value and alternative use.

Can leasehold nursery premises be financed?

Potentially. Lenders may examine the remaining lease term, rent, review provisions, assignment rights, repairing obligations, permitted use, landlord consent, business performance and the value attributable to property, fixtures and goodwill.

What documents help with a nursery mortgage enquiry?

Useful evidence may include accounts, management figures, bank statements, occupancy and fee information, funded-hours income, payroll, property and lease details, registration or inspection information, deposit source and a business plan for a purchase, start-up or expansion.

Can Count Ready help refinance existing nursery premises?

Yes. We can review the current mortgage, property value, equity, trading position and reason for refinancing, then explain whether a commercial remortgage, further advance or another finance route may be worth considering.

How long can a nursery mortgage application take?

There is no fixed timescale. Progress depends on the lender, valuation, legal work, borrower evidence, property title, lease, planning or use position, registration-related dependencies and how quickly questions are answered. Sharing the deadline and known issues early helps produce a more realistic plan.

Last reviewed: 23 July 2026. This page provides general information, not a mortgage offer or a guarantee that a lender will accept a case.

Some commercial mortgages and business buy-to-let cases are not regulated by the Financial Conduct Authority. If an enquiry appears to involve regulated mortgage activity, this will be explained before proceeding.

Commercial mortgages for day nurseries and childcare premises