Life Lease Concept
EMERGING LIFESTYLE OPTION FOR
Life Lease housing
developments have been around for many years in Ontario and Canada
and more recently have become increasingly popular with the rapidly
expanding seniors population. Today’s Life Lease housing developments
are meeting the challenges faced by a great number of seniors. The
home in which they raised their family is now too large. Interior
and exterior maintenance is beginning to be too much to manage.
The two storey design is no longer suited to their present physical
needs with stairs up and stairs down. Although the property where
they raised their family once perfectly suited their needs, it is
now becoming a burden and a constant source of frustration.
Another challenge is the changes which may have taken place in the
neighbourhood; good friends and family have moved away, there is
less companionship and fewer neighbours to rely on in the case of
a problem or emergency. Given these and many other social and economic
demands, seniors are looking for a housing option which reduces
their worry and offers security and peace of mind, all in a community
of shared values and lifestyles. For many, Life Lease housing developments
have come to their rescue.
is how communities build communities. It will be a vibrant, affordable
community which is not dependent on government housing programs,
but on our own communities resources, services and support. We’re
offering Aldersgate Garden Homes to Belleville residents under
a Life Lease plan because it’s an affordable and attractive
what is now available to seniors."
Rev. Walter Jewell, Chair, Aldersgate Homes Inc.
that seniors move an average of 3.2 times during their retirement
years. Senior households over the age of 50 face a move from a single
family home to a condominium or apartment, to a retirement home
and sometimes to a nursing home. Life Leases are ideally suited
for providing housing to our aging population who may be quite independent
today but may require support services tomorrow.
There are many variations of Life Leases, just as there are different
forms of other types of ownership. Life Lease developments offer
the owner a leasehold form of ownership versus condominiums or single
family homes which offer the owner a freehold form of ownership.
Properly structured, both forms of ownership offer similar protection
for the owners. For example, Life Leases can be registered on title
to the property the same as a deed can be registered on a condominium
or detached house. This registration protects the interests of the
Life Leases permit
the owners more control than a traditional condominium since the
future sale or transfer of the life interest must be approved by
the owners. This control is especially important in a mature adult
community where owners prefer to live with people of their own age
and who share common interests.
The owner of a Life Lease has the exclusive right to occupy the
suite they select and to use the common facilities of a development
for as long as they desire or are able. These owners purchase their
lease, normally at market value, similar to the purchasing a home
or condominium. Once the owner takes possession of their suite,
they would pay a monthly fee, similar to a condo fee, which represents
the owner’s share of common costs including interior and exterior
maintenance, management, insurance etc..
Lease residents have a leasehold interest
the exclusive right to occupy the suite of their choice;
and shared use of the common areas.
When the owner,
or their estate, wish to sell or transfer their lease, they receive
the market value of their suite, similar to a condominium or detached
home. Therefore, it is the “market” that determines
what the leasehold ownership or life lease is worth.
Life Lease projects look like condominium projects, with similar
suite sizes, features and monthly fees, however, there is only one
owner registered on title to the property. In most cases, this owner
is a not-for-profit or charitable organization, which continues
to own and manage the project to ensure that the life lease owners’
interests are maintained. These organizations are referred to as
the sponsor group. Sponsor groups of Life Lease developments have
included churches, multi-cultural groups, nursing and retirement
home operators, service clubs and municipalities. Actual ownership
and title of the Life Lease development remains in the name and
protection of these non-profit organizations which ensures high
quality management and long-term maintenance benefits for all residents.
Life Lease housing can be closely compared to condominium ownership
in terms of investment return, security of tenure, and resident
participation in the management of the project. However, Life Lease
projects have the added benefit of greater control over membership
and lower costs. The organizational structure of Life Lease projects
allows residents to have input into the management and operation
of the building. Life Lease housing gives you the convenience and
freedom of private independent living today with the option of homemaking
and care services in the future.
"Life Lease buildings, are still principally built by non-profit
as churches and legions, with the advantage that they are restricted
to those over
55 and built to suit specific needs. Many existing rental and condominium
do not offer barrier-free or age-in place features."
Ottawa Forever Young, January 2001
145 Front Street East, Suite 302, Toronto, Ontario M5A 1E3
Leaders in Life Lease Residential Developments
Life Lease Associates of Canada, a division of 3220605
The production or reproduction in any material form whatever of
the contents of this document in whole or in part without the express
written authorization of Life Lease Associates of Canada is strictly