Life lease developments have been established for many years but have become the preferred choice for today’s rapidly expanding retirement population. What makes life lease housing attractive is the age restriction, sense of community and homogenous lifestyle.Under a life lease plan, residents purchase a “Right to Occupy” their suite at market value. This “Right to Occupy” gives the resident the exclusive right to use their suite and share all common areas. Once residents take possession of their suite, they pay a monthly maintenance fee which represents the resident’s share of operation costs, maintenance costs, management, and contributions to the reserve fund.When a resident wishes to sell their “Right to Occupy” they receive market value less an administrative fee. As the value of the market increases so does the value of the life lease interest. Therefore, residents are able to earn a return similar to the equity growth in their family home. Under a life lease plan, the non-profit corporation must approve all sales so as to ensure that the new purchaser is informed of the lifestyle, opportunities, services and responsibilities that will accompany their ownership.
Life lease developments have been established for many years but have become the preferred choice for today’s rapidly expanding retirement population. What makes life lease housing attractive is the age restriction, sense of community and homogenous lifestyle.
Under a life lease plan, residents purchase a “Right to Occupy” their suite at market value. This “Right to Occupy” gives the resident the exclusive right to use their suite and share all common areas.
Once residents take possession of their suite, they pay a monthly maintenance fee which represents the resident’s share of operation costs, maintenance costs, management, and contributions to the reserve fund.
When a resident wishes to sell their “Right to Occupy” they receive market value less an administrative fee. As the value of the market increases so does the value of the life lease interest. Therefore, residents are able to earn a return similar to the equity growth in their family home.
Under a life lease plan, the non-profit corporation must approve all sales so as to ensure that the new purchaser is informed of the lifestyle, opportunities, services and responsibilities that will accompany their ownership.