Something that’s been around for awhile, but not well understood is a Life Lease. Perhaps one reason for that is a Life Lease is better known in senior communities.
Simply put, a Life Lease is an investment in lifestyle rather than in tangible property. A Life Lease integrates the best of both worlds between renting and full ownership. You avoid the hassles of owning your own home and instead enjoy the freedom of a safe and well-kept community. Another way of thinking about a Life Lease is that it’s like a “glorified” rental!
So then, how does a Life Lease work? You purchase a Life Lease much the same as if you would purchase a house – with the exception that there are no real-estate or legal fees involved. This purchase is followed by monthly maintenance fees and property taxes and gives the buyer the right to occupy a unit as long as they want and have communal facilities and services with the assurance that their neighbor will be in the same age group. It also gives the buyer the assurance that there is a guaranteed redemption value should the buyer decide to move.
How much does a Life Lease cost? At Chinook Village, a 1 bedroom, 788 SF suite will be in the range of $130,000. Two Bedroom suites vary in size from 1007 to 1428 SF and the range will be from approximately $150,000 up to approximately $230,000. Costs will depend upon size, and certain upgrades to a suite. Supportive and Assisted Living suites will be smaller and therefore the price range will be lower starting at $70,668 with the service package as an additional cost. Suites in this area may also be rented.
Not-for-profit means the actual costs are covered and applied to the Life Lease. Nothing is being “pocketed”. In a refund schedule the cost of administration is included as a non-refundable fee, and a percentage is taken for a defined period to cover any refurbishment. Those costs are applied at the time of payout and part of an easily-understood contract.
How does a Life Lease benefit you? At Chinook Village you are required to give only 30 days’ notice, and unlike a rental, there are no rental increases. You may continue to Life Lease as you transfer to higher care levels in the same community or in the case of death, payout is made to the resident’s estate with no hassle. In the meantime, you have use of amenities, building upkeep and grounds, on-site maintenance, established management and resident’s councils are some of the benefits, to name a few.
Have more questions? Call Chinook Village or check our website. We’ve been Experts® in Life Leasing for over twenty-five years!