# Any info on Life Lease type Retirement Homes?



## milhouse (Nov 16, 2016)

The in-laws are looking at selling their single detached home and moving into something like a condo-unit so they don't have to deal with all the maintenance work. They've been looking into retirement home solution that's based on a life lease (??). Anyone with any info or experience with such a retirement solution? Pro's/Con's. Risks/Opportunities?

From what's been relayed to the missus and me so far on the one they are looking at:

The building is for seniors 65+ and self sufficient
The operators also run the assisted living retirement property across the street who seem legit
For these life lease units, you "buy into the lease" for somewhere in the neighbourhood of $500k depending on the unit
That gives you the right to lease the unit for something like a maximum of 29 years
You pay about $400 a month which kind of serves as a strata fee for upkeep and access to communal facilities and organized activities in the assisted living building across the street. 
When you move out (to an assisted living facility? or pass away), your initial buy in is returned to you/your estate less a roughly 10% refurbishing charge. So you are losing out on the opporunity costs on your initial buy-in.
The missus is going to go with them to take a look and ask questions. Any suggestions on what questions to ask?


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## ian (Jun 18, 2016)

No.. but I have often wondered about them. A friends mother was in one in BC. It will be interesting if someone familiar with the T's & C's and the financials could provide some solid data. I have never seen any articles about them either.


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## saskstu (Oct 21, 2013)

Interesting idea. Here is a link to Comfort Life. Life Lease Communities: Facts & Background

Worth looking into.


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## milhouse (Nov 16, 2016)

ian said:


> No.. but I have often wondered about them. A friends mother was in one in BC. It will be interesting if someone familiar with the T's & C's and the financials could provide some solid data. I have never seen any articles about them either.


Yeah, the missus didn't find too much info on them and wants to learn more about the T&C's to help her folks make a decision.



saskstu said:


> Interesting idea. Here is a link to Comfort Life. Life Lease Communities: Facts & Background


Thx for the link!


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## Synergy (Mar 18, 2013)

Life lease give one the right to "occupy" for a set period of time. Get your hands on a copy of the agreement and possibly a copy of their insurance policy. You want to find out what the lease holders will be responsible for. Typically it's similar to a condo (drywall in, standard unit definition, etc. - all over the map!). This will help determine the limits required for your insurance. Not all insurance companies will insure life lease residences. Get ready for lots of blank stares, it's becoming increasingly more common but it's still not standard knowledge amongst real estate lawyers, insurance professionals, etc. The agreement will also specify what you can and cannot do in the unit, on any exclusive use areas, etc. (similar to a condo). 

$400 seems fairly reasonable. Make sure there are no additional fees - property taxes, special assessments for repairs, etc..

Life lease and land lease developments are popping up like hot cakes in my region. They don't make a whole lot of sense to me after running the math but perhaps it's a good option for certain seniors. I looked into it a few times for family members and the fees and restrictions didn't make sense to us.


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## milhouse (Nov 16, 2016)

The insurance coverage, additional fees, etc are exactly stuff what we didn't understand.
They went for a visit to the one they are interested in and from the sounds of it:
They would be on the hook for property taxes and utilities.
Special assessments for repairs and stuff would be covered by the retirement home management company. Sounds like they only need renters insurance but good point and they should confirm.
They need to apply to make changes to the unit and have to revert it back to original when they move out apparently. Also good point in getting a copy of the agreement and insurance policy to review.


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## Synergy (Mar 18, 2013)

If the management company is footing the bill for repairs I guess you may not require loss assessment coverage. I just wonder what happens in the event they can't. Do they have insurance that will cover the repairs? Who will be paying the life lease corporations deductible? That's why you want to see the insurance policy. Betterment may also not be necessary if the standard until is fully inclusive and the lease owners aren't making any changes to the unit. Ask lots of questions and get everything in writing.

I promised myself never to buy another condo! Run Forest )


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