Life Lease Advantages
Here are just some of the many advantages of a Life Lease.
• Affords security of tenure
• Controls cost of accommodation
• Estate and beneficiary peace of mind
• Creates pride of ownership
• Accessible to people of modest financial means
• Qualifies for the Seniors Property Tax Rebate
What is a Life Lease?
Canada Mortgage and Housing Corporation recently published a report on life lease housing. In that report, life lease is defined this way: “A life lease is a legal agreement that permits purchasers to occupy a home for life (or until they are no longer capable of living there) in exchange for a lump sum payment and subsequent monthly payments to cover the ongoing project management fees and maintenance and operating expenses (and in some cases rent, depending on the size of the initial payment.)” This definition sounds much like a condominium but the major difference is that the title to life lease units remains with the sponsoring organization, not with the occupant. Almost all life leases in Canada are owned and operated by non-profit organizations.
The Naramata Seniors Housing Society model is one where incoming life lessees pay less than fair market value for their Unit. In addition to the lump sum, the life lessee pays monthly rent (depending on the amount of the lump sum), monthly carrying charges, utilities and taxes for the unit. At the time of purchasing the life lease, an amount that is non-refundable is agreed upon. As soon as possible after the life lessee leaves the unit, the refundable portion of the lump sum is returned to the life lessee. The Society uses the funds paid by the life lessees to keep the units and the grounds maintained.
ABOUT THE UNITS – three life lease, one rental
Naramata Seniors Housing Society’s Centennial House has four units, of which three are life-lease:
One unit is 1040 sq. ft.
Two units are each 880 sq. ft.
In addition, there is a rental unit of approximately 800 sq. ft.
Please use the Contact Us form if you would like further information or to be added to our wait list.