A Different Approach to Home Ownership
Under a Life Lease purchase, residents secure the right to live in their suites at The Meadows for as long as they wish. Residents have exclusive use of their suites and many of the same benefits as traditional home ownership.
The benefit of the Life Lease model is that The Meadows, as a non-profit sponsor, can control this project to ensure an age-exclusive, mature adult community. Life Lease is more about creating a community of people with shared interests and values than it is bricks and mortar. The Meadows is designed for adults with similar interests and backgrounds for full enjoyment in their retirement years without the headaches associated with maintaining a family home.
Life Lease buildings have more extensive amenity areas to create a stronger sense of community. This provides residents with the shared use of all common and building amenities. Once the project is constructed, residents share in the ongoing costs through payment of a Monthly Occupancy Fee, similar to a condo fee.
The age restriction for The Meadows of Aurora has been established at 65 plus. In cases where one spouse or resident is not of age, the spouse of the resident is able to reside in the suite. This occupancy is intended to maintain a harmonious environment for mature adults and create a stronger, more supportive community.
The Meadows of Aurora will be owned and operated by York Region Christian Senior Homes Inc., which shall maintain ownership and operational responsibility for in perpetuity. Residents, at their option, can register a “Notice of Agreement” on title to the property. Registration will ensure that your interest in the project is formally acknowledged on title and, once registered, you will receive notice of any future easements, encumbrances, liens, financing, etc. which might affect the property. Therefore, registration will protect your investment similar to a deed registered on title to a house or condominium.
Your Purchase and Transfer Options, “Buyback” or “Market”
Purchasers can hold ownership in The Meadows through two options–on a “Buyback” or on a “Market” basis. Each has its own benefits and purchasers are encourged to understand both before deciding which option best suits their situation.
The “Buyback” option allows purchasers, upon transfer of his or her Life Lease interest back to The Meadows, to receive back their initial purchase price, less a transfer and refurbishing fee. The “Buyback” option allows residents to protect their original investment.
The “Market” option allows purchasers, upon transferring his or her Life Lease interest back to The Meadows, to receive 90% of the sale proceeds when eventually selling at a price determined by the market with The Meadows retaining the final 10% of the selling price. The “Market” option allows residents to participate in any real estate market appreciation. However, purchasers should be reminded that markets can move both up and down.
Transfer and Refurbishment
The transfer and refurbishing fee provides funds to York Region Christian Senior Homes Inc. to coordinate the transfer, and refurbishment of units as required as a result of normal permitted use, as well as provide for future enhancement to The Meadows of Aurora’s facilities and services.
The Life Lease model established for The Meadows of Aurora terminates upon the death of the last surviving spouse. However, residents have the right to transfer their Life Lease interest at any time prior to their death.
Upon the death of one spouse or resident, the Life Lease interest automatically transfers to the surviving spouse or resident at no cost.
Upon the death of the second spouse or partner, the Life Lease interest automatically transfers to his or her estate, or may be transferred as per your will. If your estate becomes the owner, it would then be required to sell the Life Lease interest as prescribed in the Life Lease Occupancy Agreement. The Meadows will assist in the resale by maintaining a waiting list of interested buyers and locating new residents.
Land Transfer Tax Exempt
Residents of Life Lease interests are exempt from the payment of land transfer tax, provided that the resident is acquiring the Life Lease interest for the purpose of his or her occupancy of the suite as his or her principal residence or the principal residence of his or her spouse, parent or co-owner.
Monthly Occupancy Fee
Each resident pays a Monthly Occupancy Fee based on the size of their selected suite. These monthly fees are fixed for the first year of operation and will be confirmed when the Life Lease Occupancy Agreement is executed.
The Monthly Occupancy Fee includes HST, proportional property tax, heating and air conditioning, water, maintenance of all common areas and grounds, administrative fees and a reserve fund percentage for major long-term common area and structural repairs. Residents will be responsible for in-suite hydro usage, and any costs related to telephone, internet and television use. Repairs, maintenance and replacement of finishes and fixtures within each suite are also the responsibility of the resident owner except those components that are common to the building (i.e. exterior doors, windows, fan-coil units and plumbing systems, etc.).
The Monthly Occupancy Fees are set at the break-even cost of operating The Meadows of Aurora. The actual operating costs are reviewed annually by the Board. With assistance from residents, the goal is to keep the monthly costs as low as possible so that future increases can be kept to a minimum.
Although seven appliances are included in the price of your Life Lease suite, residents, after warranties expire are responsible for repairs and maintenance associated with these appliances. All supplied appliances are part of the unit and remain part of the unit at time of sale, or turnover, even if upgraded after occupancy.
For further information on our ‘Life Lease’ purchase program, please contact any Sales Representative.