Heritage Life – Retirement Living offers 2 different opportunities for individuals and couples to acquire a life lease unit.
1. GUARANTEED BUY BACK OPTION
- An individual or couple would pay an “Entrance Fee” typically 25% (or more) of the value of the life lease suite up to 100% of the suite value. For example, a 50% Entrance Fee for a suite valued at $200,000 would be $100,000.
- A monthly rental amount would then be determined that is based on financing the difference between the Entrance Fee and the suite value. . Using the example above, the balance of $100,000 (difference between the suite cost and the Entrance Fee $200,000-$100,000 = $100,000), and using mortgage terms of 25 years at 4.00% interest, the rental portion would be approximately $528 per month. (Note: that the larger the Entrance Fee paid, the lower the monthly rent portion. If a 100% Entrance Fee were paid the monthly rental portion would be $0.00).
- A monthly “Proportionate Share or Common Fee” also applies that cover utility costs, common area housekeeping, maintenance and property taxes etc. These fees are calculated annually and applied to each suite based on the size of the suite. Contact the office for the current rates.
- When the suite is no longer required, notice is provided that the suite will be vacated and a Buy Back Guarantee would apply. Within 90 days’ notice, the individual or couple would receive back 95% of their Entrance Fee (subject to certain conditions of the Refund Fund)..
2. EQUITY BASED OPTION
- In an equity based model, the couple or individual would pay 100% of the value of the suite.
- No monthly rental amount ($0.00) would apply.
- Common Fees would still apply and are based on suite size.
- In an Equity Based model, the individual or couple would take responsibility for the sale of the life lease suite when it is no longer required. They would keep the appreciated value that the suite (less an administration fee) may have gained. However, they also accept the risk that the suite may not appreciate.
- 2.5% of the selling price of the life lease suite is required to be paid to the sponsor as an administration fee.
- Buy Back Guarantee would not apply.