Frequently Asked Questions | Life Lease

What is Life Lease?

Life Lease is an approach to developing and operating housing projects for seniors, mature adults, and special groups. This is a legalized ownership arrangement entirely suited to seniors who want to simplify retirement living yet maintain their sense of independence. The lease permits seniors to own a ‘share’ of their retirement residence. A life lease can provide an exemption to land tax transfers resulting in significant to savings.

Who Benefits From Life Lease?

You are now in your senior years, probably retired with the kids out of the nest. Life lease agreements benefits those who want to reacquaint themselves with independence — you know, the life before you had children and a full-time career. It also benefits seniors who show physical aches and pains. In a life lease agreement, seniors will find all the amenities which are built to nurture retirement living at its best. You’ll also find a like-minded community who feels what you feel, or not feel…

How Does Life Lease Work?

Life lease is tailored for seniors from 55 years old onwards. The arrangement is the qualified resident purchases the Right to Occupy a housing unit and to use the common facilities. For interested parties, an application form needs to be filled out. This process usually charges an application fee, which is applied to the entrance fee when the home is selected. If the home/unit is not available, the application fee will secure the applicant as a priority and will be added to a waiting list.

The life lease applicant normally is required to pay an entrance fee as well, meaning an amount, other than a deposit or rent payable on a periodic basis annually or more frequently, paid or payable in respect of the rental unit to the landlord or a trustee. The entrance fees range based on the size and location of the residence.

Once the process is complete, entrance fee is paid, owners can now occupy the unit and will pay a low monthly occupancy fee to cover the costs of maintenance, insurance, management, and life style services. When the occupant opts to leave the building/unit the initial entrance fee is refunded usually in full.

What Are The Benefits To Owning A Life Lease?

Less Expensive and Less Maintenance: life lease buildings and communities are usually run and sponsored by non-profit organizations. Tenants pay both life lease purchase price and monthly occupancy fees at the lowest possible break-even price. The residents are worry-free from property management and building insurance. In some cases, even taxes and utilities are taken care of.

Security of Tenure: not only does life lease provide the opportunity for capital investment, it also gives security to the tenants, since most right to occupancy in a life lease plans to have no specified termination date and the life interest may transfer to the resident’s estate.

Personal Touch: life lease residents will have the freedom to choose the size and type of their own life lease unit, request for modifications suitable for special needs, and can also participate in designing the building’s common areas and have a say on the features that will be offered.

Sense of Community and Well Being: Life lease is not just a building filled with retired individuals, but consists of a strong group of community-oriented people of the same generation living comfortably. Residents of the life lease projects enjoy common facilities like multi-purpose rooms with kitchen, hobby/game room, library, and meeting rooms where they can commune and interact. It is always reassuring to know that friends are near.