Long Term Lease Property Investments
July 6, 2026
Are you looking for a property investment with a long term lease attached to it but don’t know where to start? You’ve come to the right place
Long term lease property investments appeal to investors who want property-backed income without the daily pressure of managing tenants, maintenance, voids and operational issues.
However, the phrase “long term lease” can be used very loosely in the investment market. One investment might have a true 20-year lease with one specialist provider. Another might only have a collection of shorter 5-year agreements that need to be renewed again and again.
Those two structures are not the same.
At Foot Forward Property Investments, we specialise in building passive income property investments for investors who want a more secure, professionally managed route into property. With over 34 years of experience and more than 450 completed properties to date, we understand how important it is for investors to look beyond the headline yield and understand the lease, the tenant, the property use and the long-term demand behind the investment.
What is a long term lease property investment?
A long term lease property investment is usually a property where the investor owns the asset and leases it to a tenant for an extended period.
In a standard buy-to-let property, the tenant may be an individual household on a shorter tenancy agreement. In a specialist long term lease investment, the tenant is often an operating company, care provider, education provider or commercial occupier.
The investor’s income comes from the lease. The tenant’s responsibility depends on the lease terms, but in stronger passive investment models, the tenant may take responsibility for much more than rent alone.
In our care property model, the investor owns the property 100% freehold. The care provider becomes the tenant. The lease runs for 20 years, with the option to extend. The income increases in line with CPI inflation each year, subject to the lease terms.
Why many “long term” property investments are not truly long term
In our experience, many property investments described as long term are not structured around one clean, long lease.
Some are built around 5-year leases back to back. That means the investor may be told the investment has long-term potential, but legally, each smaller lease still needs to be renewed, re-signed or renegotiated.
That creates renewal risk.
It also creates tenant risk. If the provider no longer wants the property, if the local area becomes difficult, if neighbours become disgruntled with the tenant profile, or if the operator’s business model no longer works, the provider may simply hand the keys back at the end of the shorter agreement.
That is a very different position from owning a specialist care property with a 20-year lease to the same tenant and provider from the outset.
Our investments are a universe apart
Our long term lease property investments are not ordinary residential properties with a “guaranteed rent” label attached.
They are specialist care properties operating in carefully selected sectors:
Children’s Care Homes
Adult Residential Care Homes
SEN and SEND education environments
These are specialist settings. They are not standard buy-to-let houses, rent-to-rent arrangements or room-based property schemes.
Children’s homes in England operate under detailed regulations and quality standards, including standards around care, education, health, wellbeing, protection and leadership. Adult residential care services in England may need to register with the Care Quality Commission where they provide regulated activities, and the CQC assesses whether services are safe, effective, caring, responsive and well-led.
That regulatory background matters because specialist care property cannot be developed casually. The property must work for the care provider, the regulator, staff, residents, commissioners and the investor.
A market-first route into specialist care property
To our knowledge, Foot Forward Property Investments offers a market-first opportunity for investors: the chance to own a specialist care investment at its development price, rather than its commercially operating value.
That distinction is important.
A completed, operational care property with a long lease and established care use can command a much higher commercial value. If an investor only enters at that stage, the purchase price may already include the uplift created by the lease, operator, care use and income profile.
Our model gives investors access at the development stage. The investor funds the acquisition and development of the property, rather than paying the higher price that may apply once the asset is fully operational as a specialist care investment.
This can help investors in two important ways.
First, the overall entry price can be significantly lower than buying the same type of asset once it has been developed, tenanted and commercially valued.
Second, depending on the structure, valuation and tax treatment, there may be a meaningful SDLT saving compared with purchasing a fully operational commercial care asset at its higher completed value. SDLT is a tax-sensitive area, so this should always be confirmed by an independent tax adviser before purchase.
20 years straight, not smaller leases bundled together
Our leases are structured as 20-year leases from the outset.
They are not separate smaller leases bundled together to create the appearance of a longer agreement. They are not a series of 5-year lease promises that rely on repeated renewals. They are not dependent on a new tenant being found every few years.
The lease is with the same tenant and the same care provider throughout the lease term.
That matters because clarity matters. Investors need to know who their tenant is, how long the lease runs for, how income is reviewed, who is responsible for the property and what happens at the end of the term.
A true 20-year lease is much easier to understand than a stack of short agreements presented as a long-term structure.
What does “government backed and funded” actually mean?
This is one of the most important sections of this article.
Our investments are government backed and funded in the sense that the underlying care need is driven by local authority demand, statutory responsibilities and public sector funding routes.
However, that does not mean you personally sign a 20-year contract with the British Government.
No investment receives this, no matter how hard a developer, deal packager or sales agent tries to sell that idea.
Your contract is with the care provider because the care provider is your tenant. The care provider operates within a local authority framework, providing specialist care or education where there is demand and where placements are required.
In the vast majority of cases, even care providers do not hold simple 20-year contracts with local authorities. Placements are usually demand-led and based on assessed need, suitability, availability, commissioning requirements and ongoing care needs.
That is why investors should be cautious of anyone who suggests that “government backed” means the Government personally guarantees the investor’s rent for 20 years.
A more accurate explanation would be this:
The investor owns the freehold property.
The care provider leases the property from the investor.
The care provider operates in a regulated care or education environment.
The service is funded through public sector care or education routes.
The investor’s legal rental contract is with the care provider, not directly with the Government.
That explanation is less flashy, but it is far more honest.
10% NET to 12% NET yield for 20 years
Our specialist care property investments can offer between 10% NET and 12% NET yield for a 20-year term, depending on the property, use, operator requirement and investment structure.
The lease includes annual CPI-linked rent increases, helping the income adjust over time in line with inflation.
For investors, this can create a strong passive income profile, especially when compared with traditional buy-to-let investments where income can be affected by voids, maintenance, letting fees, tenant turnover, arrears, mortgage costs and ongoing landlord involvement.
A 10% NET to 12% NET yield does not mean the investment is risk-free. It means the income has been structured through a long term lease with a specialist care provider. Investors still need to understand the lease, the tenant, the asset, the sector and the exit position.
100% freehold ownership
The investor owns the property 100% freehold.
That is very different from buying a room, a leasehold unit or a fractional share in a larger development.
Freehold ownership gives the investor a clearer legal interest in the underlying property. It also gives the investor a more understandable asset position over the long term.
With some room-based or fractional investment models, investors may believe they are buying property security, but the resale, valuation, refinance and control position can be much weaker than expected.
Our model focuses on whole-property ownership. The investor owns the asset. The care provider leases it. The income comes through the lease.
Fully managed from development to day-to-day operation
A genuinely passive long term lease investment should not require the investor to manage the build, chase contractors, deal with care specifications or understand operational care requirements.
Our model is fully managed from start to finish.
Foot Forward Property Investments handles the acquisition, planning route, refurbishment, development, site management, specification, care provider requirements and handover process.
Once operational, the care provider is responsible for running the care or education service. That includes staffing, regulation, day-to-day management, service delivery and operational responsibility.
The investor’s role is to fund the investment and own the freehold asset. The structure is designed for investors who want property-backed income without becoming a landlord in the traditional sense.
Why specialist care property needs experience
Care property is not normal property.
A children’s care home, adult residential care home or SEN school must be suitable for the people who use it, the staff who work in it, the provider who operates it and the regulatory framework around it.
That means the property needs to be considered from multiple angles:
Layout
Access
Safety
Fire compliance
Room use
Staff areas
Communal areas
Outdoor space
Therapeutic needs
Operational practicality
Regulatory suitability
Long-term durability
This is where experience matters.
With over 34 years in property and more than 450 completed developments, we understand that passive income property investment cannot be built on sales language alone. It needs practical development knowledge, real management experience, proper compliance and a clear understanding of what the operator actually needs from the building.
Google’s own guidance encourages content to be helpful, reliable and people-first, especially where users need trustworthy information to make important decisions. That is exactly why this article explains the structure carefully, including the risks, contract position and funding reality.
Who may suit a long term lease care property investment?
A long term lease care property investment may suit investors who want:
A 100% freehold property asset
A passive investment structure
A 20-year lease
A single care provider tenant
10% NET to 12% NET yield
CPI-linked annual rent increases
No day-to-day tenant management
No traditional buy-to-let involvement
Exposure to specialist care property
A socially useful investment sector
A fully managed route from development to operation
It may not suit investors who want short-term liquidity, speculative trading, direct tenant control, quick resale or a standard residential buy-to-let model.
Why we do not overstate the security
It would be easy to say that these investments are “guaranteed by the Government” or that the investor has a “20-year Government contract.”
That would not be accurate.
We prefer to explain the structure properly.
The investor’s lease is with the care provider. The care provider is the tenant. The care provider operates within a regulated sector and receives income through public sector care or education funding routes, depending on the service and placements.
That is still a strong structure when done properly, but it should not be confused with a direct Government contract.
Investors deserve clarity. They should know exactly where the income comes from, who signs the lease and what the real legal position is before they invest.
Long term lease property investments with Foot Forward
Long term lease property investments can offer a strong route into passive property income when the lease, tenant, asset and sector are properly understood.
At Foot Forward Property Investments, our model gives investors the opportunity to own specialist care property at development price, rather than paying the higher commercial value often attached to completed operational assets.
Our investments are 100% freehold, fully managed and structured around 20-year leases with the same care provider tenant. They operate in specialist care and education sectors, including Children’s Care, Adult Residential Care and SEN environments.
Investors can receive 10% NET to 12% NET yield for a 20-year term, with annual CPI-linked increases and the option to extend, depending on the individual investment.
This is not a short lease arrangement dressed up as a long-term investment. It is not a room-based scheme. It is not a fractional unit. It is not a direct contract with the British Government.
It is a specialist, fully managed, freehold care property investment with a long term lease to a regulated care provider.
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FAQs about long term lease property investments
What is a long term lease property investment?
A long term lease property investment is a property investment where the owner leases the property to a tenant for an extended period. In our care property model, the investor owns the property freehold and leases it to a care provider for 20 years.
Are your leases really 20 years?
Yes. Our care property investments are structured around 20-year leases from the outset. They are not a collection of smaller 5-year leases bundled together.
Who is the tenant?
The tenant is the care provider. The care provider leases the property from the investor and operates the care or education service.
Do investors sign a 20-year contract with the British Government?
No. The investor’s contract is with the care provider, not directly with the British Government. The care provider operates within a local authority framework and receives funding through public sector care or education routes, depending on the service and placements.
What does government backed and funded mean?
It means the underlying care or education need is supported by statutory duties, local authority demand and public sector funding routes. It does not mean the Government personally guarantees the investor’s rent.
What NET yield can investors receive?
Our specialist care property investments can offer 10% NET to 12% NET yield for a 20-year term, depending on the property and investment structure.
Does the income increase over time?
Yes. The lease includes annual CPI-linked rent increases, subject to the lease terms.
Is the investment fully managed?
Yes. Foot Forward Property Investments manages the process from acquisition, refurbishment and development through to handover. The care provider then manages the day-to-day care or education operation.
Do investors own the property freehold?
Yes. The investor owns the property 100% freehold.
Is this the same as buying a care home room or fractional unit?
No. Our model is based on whole-property freehold ownership. The investor owns the asset and leases it to the care provider.
Are long term lease property investments risk-free?
No property investment is risk-free. Investors should consider the lease, tenant, operator, property, regulation, funding route, exit position and professional advice before investing.
Written by Thomas Abram, Foot Forward Property Investments Ltd
Reviewed by the Foot Forward Property Investments development and investment team
Foot Forward Property Investments has over 34 years of property experience and has completed more than 450 property developments to date. Our team works across acquisition, refurbishment, compliance, development, lettings, management and specialist passive income property investments.
Important investment disclaimer
This article is for educational purposes only and should not be treated as financial, legal, tax or investment advice. Long term lease property investments can produce strong income, but they are not risk-free. Investors should take independent legal, tax and financial advice before making any investment decision.
SDLT rules depend on the property type, transaction structure, purchase price, use and whether the property is residential, non-residential or mixed-use. HMRC guidance explains that SDLT treatment differs depending on those factors, so investors should always obtain professional tax advice before proceeding.