## Separate the building from the service
Start with the operating model. The Care Quality Commission states the [nature of the care activity determines whether registration is required](https://www.cqc.org.uk/guidance-regulation/providers/registration/scope-registration/regulated-activities/personal-care). Personal care can include care delivered through supported living or housing-with-care services. Housing or social support without defined personal-care tasks does not by itself require registration for personal care. Ask the operator to identify the exact regulated activity and registration position, verifying this rather than inferring it from marketing language.
A provider planning to carry on a regulated activity in England [needs CQC registration and must evidence how it will meet the regulations](https://www.cqc.org.uk/guidance-regulation/registration/register-provider). Before applying, the provider needs the proposed locations, staff, and managers where required, along with supporting documents, ready. Record the service, provider, and location being checked. The CQC holds the legal entity directly responsible for carrying on a regulated activity accountable for that registration.
## Build three evidence files
**Property file:** Follow the public due diligence workflow to verify ownership, review legal material with a solicitor, assess condition with an appropriate survey, and confirm finance compatibility. GOV.UK notes that a [material change of use can require planning permission](https://www.gov.uk/guidance/when-is-permission-required), with the local planning authority considering the facts and degree of the change.
**Provider file:** CQC guidance on business plans for listed care services includes company background, service details, local market evidence, named task owners, company structure, and financial forecasts. The plan should include all income and costs and evidence how the service remains financially viable. The CQC [care service search](https://www.cqc.org.uk/care-services) allows users to find regulated care services and compare available inspection reports and ratings.
**Entity file:** CQC guidance identifies the service provider as the legal entity carrying on the regulated activity and holds that entity accountable for its registration. Record the provider named in the proposed arrangement and use the buyer's solicitor for the legal review.
## Worked finance example
Use the [bridging loan cost calculator](/tools/bridging-loan-cost-calculator) before judging the conversion budget. The inputs are a GBP 150,000 purchase, GBP 25,000 works, and a GBP 112,500 bridge at 75% LTV. At 1% monthly for six months, interest is GBP 6,750. A 2% arrangement fee is GBP 2,250 and a 1% exit fee is GBP 1,125.
The controlled finance-cost output is GBP 10,125 before legal, valuation, broker, and contingency costs. Add this result to the cash requirement and preserve the six-month term input alongside it.
## Make the downside decision explicit
Use the [investor pack readiness checker](/tools/investor-pack-readiness-checker) to record core deal numbers, proof gaps, and the assumptions table. Its public checklist covers sold comparables, rent evidence, works estimates, EPC, tenure, licensing, planning, and HMO notes where relevant. The checker is a screening tool and does not itself verify evidence or value a property, so keep the underlying documents with the decision.