What is life equity?
Life Equity, also known as Life Lease, is an exciting new form of home purchase suited to mature adults who no longer want the worries of maintaining a single-family home.
Up until now, when someone chose to downsize from a single family household they had two options; rent an apartment or buy a condominium. Now there is a third option in Atlantic Canada, Life Lease.
Active adults, 55 years of age or older, purchase the “right to occupy” a residential unit, are entitled to occupy the unit for life, or for as long as they are capable of independent living. When the unit becomes available, it will be sold at the current market value. Occupants, or their estate, receive 92% of the unit’s current market value on resale. Market value is determined by an independant appraiser if required.
Unlike apartment living where tenants see their savings slip away each month or condominium living where owners are faced with the financial risks of cash-calls, Life Lease offers security from both.
Northwoodcare Inc. owns the building and assumes the capital risks while occupants relax knowing they have guaranteed tenure, worry-free maintenance and predictable expenses. Northwood has been providing retirement living options to independent seniors for over 50 years. We have developed the knowledge and expertise to meet the lifestyle needs of older adults and are pleased to be the first to offer this exciting opportunity to Atlantic Canada.
The Meridian is a Market Value Life Lease and is built to cost. A certain percentage of the suites must be sold before construction begins. With other Life Lease projects this has typically happened within 24 months.
Although new to Atlantic Canada, Life Lease is well established and very popular in other parts of Canada with most Life Lease buildings having long wait lists for entry.
For an overview of all types of Life Lease, read So What’s a Life Lease (PDF format) by Olev Edur. Reprinted with permission from Good Times magazine, March 2009