Confidential — For Internal Discussion Only · Saturn House Planning Site · v2.1 · July 2026
Trinity · Children's Residential Care
Saturn House
A solo, therapeutic (tier‑4) children's home in Leeds — planning permission in place, Ofsted registration to follow. This is the live project workspace: the plan, numbers you can actually play with, and what to action next.
Internal planning document — not advice. This is a confidential decision-support tool for the prospective directors and partners of Saturn House. It is not legal, financial, tax or investment advice. Every figure is illustrative and depends entirely on agreeing the lease amendments and achieving Ofsted registration, neither of which is guaranteed. Obtain specialist solicitor and accountant advice before signing the lease or committing capital.
1
The Aim
Establish and operate a high‑quality solo therapeutic children's home that delivers excellent outcomes for one young person with complex needs — done in a way that protects the founders' investment and scales into a small group of homes.
What we're building
A single‑occupancy, trauma‑informed home registered with Ofsted as a therapeutic (tier‑4) provision — the most supply‑starved, highest‑fee niche in the sector.
Why it works
National placement shortage, planning permission already granted, an experienced operator, and fees validated by 2025 market data (£11,685/wk for solo placements).
Where it goes
Saturn House is home one. The registration, policies and Responsible Individual become a platform for further planet‑themed homes — Jupiter House and beyond — under the Trinity brand.
2
Why "Saturn"?
The name isn't just branding — the planet is a genuinely fitting metaphor for what this home sets out to be.
A place held steady, and held together
The rings. Saturn is defined by its rings — countless separate pieces held in a stable orbit by a steady central force. That's the model of care here: a single child, surrounded and held by a consistent team, structure and routine that keeps everything in balance.
Three rings, one system. The Trinity mark's three interlocking rings mirror the three forces that make this work — the child, the care team, and the home — orbiting a shared centre. Take one away and the system loses its balance.
Gravity, not gravity's weight. Saturn holds its moons not by force but by a calm, constant pull. A therapeutic home does the same — safety through steadiness, boundaries that reassure rather than restrict.
The naming convention. Ofsted now themes homes individually. Planets give the group a warm, hopeful, expandable identity — Saturn first, then Jupiter, and onward — each a distinct world under one sky.
Governance to lock down: a shareholders' agreement for Doug's 20% (vesting, leaver terms, pre‑registration exit), accountant advice on the equity‑for‑services tax treatment, and documented related‑party terms for Rose's dual landlord/manager role. Keep the initial fit‑person interview to one named director to keep vetting and the money trail simple.
5
The Lease — Pitfalls, Positives & What Needs Changing
A five‑year common‑law commercial lease. Competent but firmly landlord‑favouring — as drafted it does not deliver the core requirement: security that the landlord can't take the house back. Fix before signing.
⚠️ These amendments must be agreed before we sign the lease or commit any capital.
The four red-priority items — non-negotiable
Non-negotiable
1 · Personal Guarantee
Now: unlimited directors' guarantee for the full five years.
Required: removed, or capped (6-12 months' rent + proven damage) and stepped down after 12 months' clean payment.
Non-negotiable
2 · Ofsted Longstop
Now: either party can walk if not registered within 24 months.
Required: tenant-only exit after 12 months if registration isn't achieved (extendable while progressing).
Non-negotiable
3 · 36-Month Break Clause
Now: mutual break — the landlord could end the lease with children placed.
Required: tenant-only. A landlord break over a live placement is operationally and regulatorily unacceptable.
Non-negotiable
4 · LTA 1954 & Exclusive Possession
Now: silent on security of tenure; no exclusivity vs Airbnb.
Required: confirm inside the 1954 Act (or a strong contractual renewal right), plus exclusive possession from day one.
Why these four are deal-breakers
Together they answer the single question that underpins the whole investment: can the landlord take the house back after we've spent £60-100k getting it registered? The guarantee cap limits personal exposure; the tenant-only longstop and break stop the landlord ending the lease once children are placed; and the 1954 Act position plus exclusive possession secure long-term tenure and control. Without all four, the set-up spend and a placed child's stability sit at the landlord's discretion — so these are conditions of signing, not points to trade away.
Positives
Sensible split of pre‑ vs post‑registration responsibilities
Structural repairs stay with the landlord
Inspections capped (4/year, 48h notice)
Phased rent: £1,250 pre‑op → £2,000 operational
Modest deposit (£2,000); standard boilerplate
Pitfalls
Mutual 36‑month break — landlord could end it over a home with a placed child
Either‑party 24‑month Ofsted longstop — too long, cuts both ways
Unlimited personal guarantee across the full 5 years
No confirmation on the Landlord & Tenant Act 1954
Rent account in a personal name, not the company
No exclusivity clause vs Airbnb/third‑party use
Must change
Break clause → tenant‑only
Longstop → tenant‑only exit at 12 months
Guarantee → capped & stepped down
Rent trigger → on first placement, not registration
Property‑fault exit without further liability
Confirm LTA 1954; exclusive possession
The leverage: the tenant invests £60–100k in the landlord's asset, raises its use‑class value and steps rent up 60%+ on registration. That's a strong hand. If the four red‑priority points can't be agreed, the right decision is not to sign. Take specialist care‑sector legal advice before signature — this page is not legal advice.
Full lease terms, as drafted
Term
Draft position
Parties
Landlord: ROCEP Properties Ltd. Tenant: NewCo (to be named)
Term / possession
60 months, 1 Aug 2026 - 31 Jul 2031; possession 1 Aug 2026
Rent - pre-operational
£1,250 pcm while awaiting Ofsted registration & lawful operation
Rent - operational
£2,000 pcm once registered (draft figure; £2,500 mentioned earlier - must be pinned down)
Rent review
After 12 months; 3-5% annually by agreement; upward-only
Deposit
£2,000, refundable
Payment
Monthly in advance; account in an individual's name (I R Ekengwu) though landlord is a company
Permitted use
Children's home (solo) + ancillary staff accommodation; no assignment/subletting without consent
Personal guarantee
Directors guarantee ALL tenant obligations (unlimited, full term)
Tenant-only. A landlord break over a home with a placed child is untenable
Red
8
Landlord & Tenant Act 1954
Confirm inside the Act (security of tenure) or contractual renewal right if contracted out
Red
9
Change of control / assignment
Consent not unreasonably withheld/delayed; deemed consent 14-21 days; define material change (>50%)
Amber
10
Ofsted works & adaptations
Tenant may do reasonable non-structural compliance works, consent not unreasonably withheld; pre-existing structural issues = landlord cost
Amber
11
Exclusive possession / Airbnb
Exclusive possession & quiet enjoyment from 1 Aug 2026; NO Airbnb/third-party use - conflicts with use, insurance, safeguarding
Red
12
Inspection protocol
4/year accepted, coordinated with the Registered Manager to protect children's routines and privacy
Green
13
Payment details
Pay ROCEP Properties Ltd, not a personal account; company details in the lease for a clean audit trail
Amber
14
Sale of property
Lease binds any purchaser; notification if marketed
Green
15
Rose related-party / RM role
Documented separately via arm's-length services agreement; Ofsted transparency
Amber
16
Good-faith cooperation
Both parties cooperate reasonably with the registration process
Green
6
Care Package
Registered as a therapeutic solo provision — the segment where fees are highest and demand is most acute. Staffing is the biggest single cost, so the model below lets you flex 2 vs 3 carers directly.
The offer
One young person with complex emotional, behavioural or mental‑health needs (tier 4).
Core team of 3 full‑time carers (the ideal), a Registered Manager, plus waking‑night / relief cover for true 24/7. The finance model also lets you test a leaner 2‑carer build.
Trauma‑informed, therapeutic parenting with input from a mental‑health practitioner.
Reg 44 independent visitor and Reg 45 quality reviews built in.
The economics of a placement
Benchmark (2025)
£/week
National average children's home
6,100
Break‑even (this home)
~7,400
Modelled fee
11,077
Solo placement (Birmingham FOI)
11,685
Complex‑needs top end
up to 63,000
A solo home's true 24/7 cover needs more than 3 heads once nights and relief are included — the model separates carers, manager and night cover so you can see it.
Registration granted; marketing to placing authorities; first placement; operational rent begins
Timeline realism: Ofsted decisions commonly take 6–18 months post‑submission. Treat the cashflow's 12 months as "the first 12 months of operation," realistically starting H2 2027 — not calendar 2027.
The regulatory pathway
The gate & the application
Registration under the Care Standards Act 2000 and the Children's Homes (England) Regulations 2015 - no income is possible before it, and nearly all pre-registration spend is sunk if it fails.
Application = SC1 + SE1 documents, Statement of Purpose, full policy suite, RI and RM fit-person interviews, enhanced DBS for all, and a premises/registration inspection.
Planned submission January 2027, with Doug as Responsible Individual.
Ongoing regulatory duties
Reg 44 - monthly independent visitor reports (budgeted at £350/mo).
Reg 45 - quality-of-care reviews owned by the Registered Manager.
Reg 46 location risk assessment for the Burmantofts setting.
Statutory certificates (landlord-side pre-registration), the notifications regime, and Ofsted's annual fee (~£2,006).
8
Worst Case vs Best Case
Both monthly and annualised. The truth sits between — driven mostly by occupancy and the lease. The live model in Section 9 lets you build any point in between.
Worst case assumes a leaner 2‑carer build still can't offset a half‑year void; best case assumes full occupancy at the top of the fee band with the 3‑carer team. Figures update from the same engine as the live model.
9
Live Financial Model
Type a figure or drag a slider — every field is editable and everything recalculates live, monthly and annually. Add your own cost lines, flip 2/3 carers, load a scenario, or reset to defaults.
Founders' envelope £60-100k; model assumes £80k start-up capital
This is the money at risk before any income arrives - the reason the red-priority lease protections matter. The live model below covers the first operating year, once a placement is live.
Income
£
2025 benchmark: solo placements average ~£11,685/wk (Birmingham FOI). Break-even sits near £7,400/wk.
of 52
A solo home is all-or-nothing. Plan conservatively (42-46 weeks), not a full 52 — every void month costs ~£32k.
Staffing
carers
3 is the ideal core team; the Registered Manager and waking-night / relief cover are separate lines below.
£
£
£
Operating costs £/month · editable
£
Projected first operating year
MonthlyAnnual
Income
Staffing
Rent
Other operating
Total costs
Profit / (loss)
Net after 25% tax
Break‑even occupancy
Income
Costs
Illustrative model for discussion only — not a forecast, and not financial advice. Cost defaults are drawn from the project cashflow (food, utilities, insurance, vehicle, Reg 44, training, etc.) with staffing rebuilt bottom‑up. Tax at 25% on positive profit only.
10
SWOT Analysis
Strengths
Experienced RI (Doug) with prior multi-home registration track record
Planning permission already in place - major barrier removed
Phased cost model avoids c. £150k early salary burn; set-up £55-75k
Equity-aligned incentives: Doug's 20% earned by delivering registration
Therapeutic tier-4 = top-of-market fees; break-even near £7.4k/wk vs £11-12k achievable
Income assumption validated by 2025 solo benchmark (£11,685/wk)
Rose's mental-health skill set strengthens the therapeutic offer
Weaknesses
Solo home = binary occupancy; every void month c. £32k burn
No income until Ofsted registration - all early spend at risk
New, unregistered provider - no commissioner track record
Dependence on two key individuals (Doug as RI; recruited RM)
Arm's-length documented terms; separate services agreement; declared to Ofsted; independent RM recruited first
R6
Unlimited personal guarantees expose directors' assets
-
High
Cap and step down the guarantee (pt 3); solicitor-drafted wording
R7
RM recruitment slips, or tier-4 ratios exceed wage model
Med
Med-High
Recruit Nov/Dec against 3-month norm; validate rota before fee negotiation; price enhanced staffing into fee
R8
Placement breakdown / serious incident leading to suspension
Med
High
Rigorous matching for a solo placement; therapeutic model + clinical input; Reg 44/45 oversight; notification discipline
R9
Airbnb/third-party use compromises condition/insurance/safeguarding
Med
Med
Exclusive possession from 1 Aug 2026 (pt 11); schedule of condition with photos
R10
Key-person dependency (Doug) stalls application
Low-Med
High
Shareholders' agreement with pre-reg exit terms; docs held in NewCo; consultant backup identified
R11
Fee pressure / national profit-cap policy
Med
Med
Solo therapeutic is the most supply-constrained segment; evidence outcomes; diversify placing authorities
R12
Cashflow optimism (start date, council tax, 100% occupancy)
High
Med
Re-baseline to registration date; correct council tax; plan on 42-46 occupied weeks year 1; hold £80k capital
12
Research — Is This Realistic?
The income assumption stands up to published 2025 sector data. If anything, it's conservative.
Finding (2025)
Figure
Source
Actual solo placement cost
£11,685/wk
Birmingham Children's Trust FOI (Sep 2025)
£10,000+/week placements
1,510 (from 120 in 4 yrs); 91% of councils hold one
LGA / NAO analysis
National average children's home
~£6,100/wk
NAO, Managing children's residential care
Largest providers' operating margin
22.6% avg
CMA market study
Complex‑needs top end
up to £63,000/wk
LGA high‑cost survey
What this confirms
The £11,077 modelled fee sits ~5% below the real solo comparator, demand for this high‑cost band is large and growing, and the ~25% net margin is in line with the sector — not an outlier.
Two cautions
Those fees exist because solo homes carry heavy staffing — validate the staffing lines against a real tier‑4 rota. And provider profits are under political scrutiny (NAO/CMA 2025), so plan for possible fee pressure over five years.
13
Verdict - The Case For & Against
The whole plan pulled into a single balanced judgement.
The case for
The economics are genuinely strong. ~£144k modelled net on £55-80k invested; ~25% net margin in line with the sector.
The price is real. £11,077/wk sits below the Sep-2025 solo benchmark of £11,685 - conservative, not fantasy.
Demand is large and growing. £10k+ placements up 12-fold in four years; 91% of councils need them.
Big barrier already cleared. Planning permission is in place.
Real operating expertise, properly aligned. Doug's 20% is earned on delivering registration.
Wide margin of safety on price. Break-even ~£7.4k/wk vs £11-12k achievable.
A platform, not a one-off. First registration is the hardest; Jupiter House reuses the RI, policies and track record.
The case against
Everything hinges on one gate. No income until registration; ~£55-60k sunk if it fails or the property is lost mid-process.
One bed = binary income. A half-year void turns the year to a ~£97k loss; every empty month ~£32k.
The lease, as drafted, does not protect you. Mutual break, either-party longstop and an unlimited guarantee mean the landlord can take the house back.
Related-party risk. Rose as landlord + prospective RM invites scrutiny if not documented at arm's length.
The timeline is optimistic. A Jan-2027 submission plus backlog likely pushes real income to H2 2027.
The wage line needs proving. Tier-4 solo ratios can exceed budget; if fees don't move with staffing, margin thins.
Policy headwind. National scrutiny of care-provider profits could tighten fees or impose caps.
Bottom line: a fundamentally attractive, well-structured opportunity with sector-validated economics and an experienced operator - but its value lives or dies on two things the founders control now: the lease terms and occupancy planning. Get the four red lease amendments agreed and specialist-reviewed, plan on 42-46 occupied weeks not 52 in year one, hold the full £80k plus a 3-month buffer, and document Doug's equity and Rose's role - and the risk shifts from speculative to genuinely investable. Proceed on those conditions; do not sign the lease as currently drafted.
14
Assumptions & Open Questions
Assumptions used
Start-up capital £80,000 (envelope £60-100k); set-up spend £55-75k over ~10 months.
Weekly fee c. £11,077 (£48,000/month) for one tier-4 therapeutic solo placement.
Operational rent £2,000 pcm per draft; pre-operational £1,250 pcm.
Registration ~10-14 months from lease start (target mid-2027; realistic to late 2027).
Doug: £2,000/month to registration, then 20% equity; single named director sits the initial fit-person interview.
Open questions before signing
Operational rent: £2,000 (draft) or £2,500 (earlier)? £6,000/yr difference.
When does Airbnb stop, and is possession exclusive from 1 Aug 2026?
Will the landlord accept the four red amendments (guarantee cap, tenant-only longstop & break, property-fault exit, LTA 1954)?
What rota/ratio does the wage line assume, and does it fit a tier-4 cohort?
Council tax / rates treatment in operation? (modelled at £0 - verify with Leeds CC)
Rose's RM pathway (L5 Diploma timeline) and interim management?
Why is the nominated account personal when the landlord is a company?
Can NewCo obtain £10m PL + EL for an unregistered home during fit-out?
15
Action Station — The Decision Point
This is where the plan becomes a decision. Proceeding is conditional on agreeing the four red-priority lease items. Everything else is sequencing.
Do not sign the lease or commit capital until the four items below are agreed in writing and reviewed by a specialist solicitor.
Conditions of proceeding — the four red lease items
1 · Personal Guarantee — capped or removed.
2 · Ofsted Longstop — tenant-only exit at 12 months.
Send the 16-point amendment schedule to Rose (email ready below) and agree in principle. THIS WEEK
Instruct a specialist care-sector property solicitor to mark up the lease — do not sign first. BEFORE SIGNING
Engage an accountant on company formation, share structure and Doug's equity-for-services tax treatment. BEFORE SIGNING
Confirm in writing: operational rent figure (£2,000 vs £2,500) and that Airbnb use stops with exclusive possession from 1 Aug 2026. BEFORE SIGNING
Sign the amended lease & take possession — with a photographed schedule of condition.
Sign the shareholders' agreement and start Doug's onboarding (15 Aug).
Run set-up: decor & compliance works, policies, Statement of Purpose, insurance, ICO, DBS.
Recruit the Registered Manager (Nov/Dec) and submit SC1/SE1 to Ofsted (Jan 2027).
Re-baseline the cashflow to the real registration date and build a 3-month cash buffer (~£96k) from early surpluses.
Ready-to-Send Email to Rose
✉ Email — Lease amendments
Subject: Saturn House – Proposed Lease Amendments for 20 Glenthorpe Crescent
Hi Rose,
I hope you're well.
Thank you again for the draft lease and for the discussions so far. We're genuinely excited about the opportunity to develop a high-quality therapeutic solo children's home at the property.
We've now completed a detailed internal planning document (including financial modelling, risk analysis, and regulatory timeline). The core commercial terms in the draft lease — the £1,250 pre-operational rent, £2,000 operational rent, five-year term, and £2,000 deposit — are acceptable to us.
However, given the significant upfront investment we will be making in Ofsted registration and set-up (£60-100k range), and the regulated nature of the business, we need to agree a small number of important amendments before we can proceed to signature.
We've prepared a clear 16-point amendment schedule. Most are clarifications or reasonable adjustments, but there are four red-priority items that are deal-breakers for us:
1. Personal Guarantee – We need this capped or removed (currently unlimited for the full five years).
2. Ofsted Longstop – We need a tenant-only exit option after 12 months if registration is not achieved (instead of the current 24-month either-party clause).
3. 36-month Break Clause – This needs to be tenant-only. A landlord break once children are placed would be operationally and regulatorily unacceptable.
4. Landlord & Tenant Act 1954 – We need clarity on whether the lease is inside the Act (security of tenure), or a strong contractual renewal right if it is contracted out.
We've also included points on exclusive possession from day one (no ongoing Airbnb use), property-related exit rights if registration fails due to issues outside our control, and a few operational clarifications.
Would you be happy to review the 16-point schedule? I'm very happy to jump on a call to walk through any of the points, or we can have our respective solicitors discuss them directly once we have in-principle agreement.
I'm confident we can resolve these quickly so we can move forward together on what I believe can be a really strong home.
Looking forward to your thoughts.
Best regards,
[Your Name]
[Your Phone Number]
Recommended: send this email this week. You can attach the 16-point schedule or link to this planning site.
The one-line verdict: a fundamentally strong, sector-validated opportunity whose value lives or dies on two things you control right now — the lease terms and occupancy planning. Fix the lease (all four red items), plan conservatively on occupancy, and it moves from speculative to genuinely investable.
