Under a Life Lease Plan, residents purchase a life lease interest, at market value, in both the property and their unit, similar to purchasing a home or condominium. They then have exclusive use of their unit, shared use of all common areas and facilities, and many more benefits.
Actual ownership and title of the Life Lease property remains in the name and protection of the non-profit organization that ensures high quality management and long term maintenance benefits for all residents. What makes life lease housing attractive is the age restriction, sense of community, the homogeneous lifestyle, ability to be involved and the availability of services, in a setting that responds to changing needs.
Once the resident takes possession of their unit, they pay a monthly fee, similar to a condo fee, which represents the resident's share of common project costs including maintenance, management, insurance, and contribution to a replacement reserve fund.
When the resident or their estate wish to sell their life lease interest, they receive the market value, less an administration fee. 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. Therefore, mature adults are able to protect their investment and earn a return similar to the equity growth in their family home.
Under a Life Lease Plan, the non-profit corporation must approve the future sale or transfer of a life interest. This control is especially important in a mature adult community where residents prefer to live with people of their own age and who share common values and interests.
Today's Life Lease communities are coming to the rescue for many seeking a better retirement living option.