Life Lease

/img/content/Life Lease Information Page.pdf
The Life Lease is an option for our Residents to reduce their monthly costs. Many of our residents leverage equity from investments/savings or the sale of their home to save substantially during their stay.

The following is an example of a 100% Loan towards a Suite Value of $350,000
 
Suite Value                         $350,000                              Net Rent / Month                            $0
100% Loan                          $350,000                              Operating Cost / Month                $925
Net Rent                                     0                                  Total Monthly Cost                          $925
 
Operating Costs include:  Property Taxes, heat, water, gas, sewer, power, cable, Internet, building insurance, exterior and interior maintenance and repair.  Only your telephone is your extra expense.   
 (P.S.  You won’t have to change another lightbulb!)
 
The Operating Costs are the actual costs incurred including a Property Management fee and typically can increase 5 – 6% per year, based upon the actual property tax and utility increases.
 
Loan Amount$350,000
Release Fee 8%  $28,000
Payout Amount$322,000           (120 days after Notice of Termination)
 
 
Partial Life Lease Option
With a partial Loan Amount towards the Suite Value of $350,000
 
Suite Value$350,000
Partial Loan Amount<$200,000>
Difference$150,000 x 8 % Annual Interest/12 months =$1,000 Net Rent
  
Net Rent / Month$1,000
Operating Cost/Month    $925
Total Monthly Cost$1,925
  
Loan Amount$200,000
Release Fee 8%               $16,000
Payout Amount$184,000            (120 days after Notice of Termination)
 
Rental Option
Suite Value$350,000 x 8% Annual Interest/12months = $2,333 Net Rent
  
Net Rent/Month $2,333
Operating Cost/Month   $925
Total Monthly Amount$3,258
 
Security of Loan Funds:
A Trust Agreement with a security corporation is established to manage these loan funds. 
 
Notice or Termination
Queuing Effect
Less than 6% of the total number of Life Leased suites in the community must be available for release at any one time, to avoid depressing the suite values. 
 
Release Fee
The Release Fee is used to remarket the suite and to repair any regular wear and tear.
 
Thirty days after the Ninety day Notice of Termination, the Resident or the Estate will be refunded the Loan Amount paid less the 8% Release Fee.  This gives the resident the freedom to relocate without having to worry about the real estate market and there will be no real estate commissions or legal fees.
 
Please contact a Lifestyle Consultant for more information
 

Life Lease

/img/content/Life Lease Information Page.pdf
The Life Lease is an option for our Residents to reduce their monthly costs. Many of our residents leverage equity from investments/savings or the sale of their home to save substantially during their stay.

The following is an example of a 100% Loan towards a Suite Value of $350,000
 
Suite Value                         $350,000                              Net Rent / Month                            $0
100% Loan                          $350,000                              Operating Cost / Month                $925
Net Rent                                     0                                  Total Monthly Cost                          $925
 
Operating Costs include:  Property Taxes, heat, water, gas, sewer, power, cable, Internet, building insurance, exterior and interior maintenance and repair.  Only your telephone is your extra expense.   
 (P.S.  You won’t have to change another lightbulb!)
 
The Operating Costs are the actual costs incurred including a Property Management fee and typically can increase 5 – 6% per year, based upon the actual property tax and utility increases.
 
Loan Amount$350,000
Release Fee 8%  $28,000
Payout Amount$322,000           (120 days after Notice of Termination)
 
 
Partial Life Lease Option
With a partial Loan Amount towards the Suite Value of $350,000
 
Suite Value$350,000
Partial Loan Amount<$200,000>
Difference$150,000 x 8 % Annual Interest/12 months =$1,000 Net Rent
  
Net Rent / Month$1,000
Operating Cost/Month    $925
Total Monthly Cost$1,925
  
Loan Amount$200,000
Release Fee 8%               $16,000
Payout Amount$184,000            (120 days after Notice of Termination)
 
Rental Option
Suite Value$350,000 x 8% Annual Interest/12months = $2,333 Net Rent
  
Net Rent/Month $2,333
Operating Cost/Month   $925
Total Monthly Amount$3,258
 
Security of Loan Funds:
A Trust Agreement with a security corporation is established to manage these loan funds. 
 
Notice or Termination
Queuing Effect
Less than 6% of the total number of Life Leased suites in the community must be available for release at any one time, to avoid depressing the suite values. 
 
Release Fee
The Release Fee is used to remarket the suite and to repair any regular wear and tear.
 
Thirty days after the Ninety day Notice of Termination, the Resident or the Estate will be refunded the Loan Amount paid less the 8% Release Fee.  This gives the resident the freedom to relocate without having to worry about the real estate market and there will be no real estate commissions or legal fees.
 
Please contact a Lifestyle Consultant for more information