Life Lease is an equity preservation model where seniors over the age of 55 purchase the right to occupy one of our Garden Villas or Atrium Suites and have full access to all of the amenities on site. Our Life Lease complex, founded in 1997, is comprised of a five-story building with 154 Atrium Suites and 72 Garden Villa townhomes. The Suites range in size from 702 to 1,567 square feet. The Villas range in size from 1,167 to 2,200 square feet, each with an attached single car garage.
Residents find life lease housing attractive because of the adult life style, the sense of community, the shared values, the ability to be involved in the capital appreciation, and the availability of support services, all in a setting that responds to their changing needs. Residents living in life lease contribute monthly fees similar to those of a condominium for maintenance and upkeep of the property. While life lease models are relatively new, there are currently more than 125 life lease communities operating across Ontario.
Features of Life Lease:
Maintaining capital is important as we age, since personal needs may change unexpectedly and the real estate market may be slow when a unit must be sold. At any time, if a resident residing in one of our life lease Atrium Suites or Garden Villas decides to vacate, he or she has a guaranteed buy-back within 9 months (270 days) or when the unit is resold – whichever comes first. All refurbishing and marketing of the unit is done by Luther Village, making this option a care-free experience that brings peace of mind to both residents and their families.
Upon re-sale, the resident is entitled to a sum of money equal to the original purchase price plus one-half of the appreciation or depreciation. When a resident wishes to sell their life lease interest, they receive the market value less fees owed. It is the “market” that determines what the life lease interest is worth. As the market value of local real estate increases, so does the value of the life lease interest. Real estate investments appreciate/depreciate at different rates depending on market conditions. Life lease generally follows similar trends. The opportunity for capital preservation and appreciation with a life lease suite is preferable to rental accommodation where there is no return on investment.
Life Lease Occupancy Fees:
Residents pay an occupancy fee to cover the costs of maintenance, property tax, insurance, management, lifestyle services and contribute to a reserve fund to cover capital replacements and major repairs. The occupancy fee also includes the cost of security, Emergency Response Pendant system, a Wellness Coordinator, Activities Coordinator, and Chaplain. The residents pay their own utilities and contents insurance.
For more information on our life lease model, please contact us.
For general information on the life lease model, you can review the Life Lease Housing Resource Guide.