How to Get a Life Lease to a Property
Most life lease communities are developed and owned by nonprofit organizations and charitable groups. The term "life lease" is used more predominantly in Canada. In the United States life lease communities are more often referred to as assisted living facilities, senior care communities and multi-level retirement communities. These developments cater primarily to seniors and those who need a degree of assistance, such as housekeeping, personal care services and/or meal preparation, to remain independent and living on their own. Life lease ownership is a type of property rights where an individual has exclusive use of a property for a specified period of time. Individuals typically pay an entrance fee and a monthly rental fee to cover maintenance and other expenses for a specified unit for the term of the lease. In return they receive exclusive use of their unit, shared use of common areas and facilities, plus other benefits that vary by community.
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Instructions
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Finding Communities
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Determine exactly what type of assisted living is desired. Life lease communities offer an array of services and assistance on many levels--from light assistance to 24 hour nursing care and some even cater to special needs. Individuals will want to consider immediate as well as future needs and any special areas of concern.
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2
Locate assisted care communities near you, your loved ones or in locations where you desire to live (See References and Resources).
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3
Call communities you are interested in. Make an appointment to tour the property and meet with a counselor to discuss your particular circumstances.
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Make a list of questions you and your family have about the community and the services provided. You may even want to discus your plans with your attorney and tax professional before making your final decision.
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Ask the counselor or sales person the questions you listed in the previous step. Ask about the facility's refund policy and waiting policy. Are there properties available now or is there a waiting list.
Ask what happens when you sell. Do you get your initial investment back or will you receive market value? Will fees or commissions be deducted from the proceeds of the sale? Ask about your rights as a life lease tenant. What rights do you have/won't have as a tenant vs. homeowner?
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6
Compare costs and services of communities you visited against each other and your current living costs. Note what is and is not included with each plan.
Typical services that are included are utilities, interior and exterior building. Services such as meal and medication programs are usually optional or as needed.
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Decide which facility you wish to apply to and request an application.
Purchasing Life Lease
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Complete the application and pay the application fee. Many times this fee will be applied to the entrance fee when a home is selected, similar to a down payment. If the home is not immediately available, this fee will also ensure that the applicant(s) is placed on the appropriate waiting list. Application fees are usually, but not always refundable if an applicant is not approved.
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Pay the entrance fee for the life lease. Once your application has been approved the entrance fee will need to be paid. This is a one-time-only payment that purchases the life lease and property rights of a particular property. The entrance fees range from $49,000 to $350,000 and up, based on the size and location of the residence .
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Determine and pay for the health care and optional services packages desired. Prospective residents will have many long-term health care options to choose from, and most can be tailored to fit the individual's medical needs and financial situation.
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Take possession of your unit and enjoy the security of your new lifestyle.
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Tips & Warnings
Talk to other residents and ask them questions.
Ask questions and make sure you understand every aspect of the particular life lease you are considering.
Get all answers in writing.
Entering into a life lease is a big decision, due diligence is necessary for all parties involved.
Involve your attorney and financial advisers to ensure that the decision you are about to make will be a sound one.
References
Resources
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