Life Lease Housing for Seniors

Seniors have many housing options as they reach retirement age and beyond including aging in place at home, downsizing to a more accessible home or moving to an adult lifestyle community, retirement home or supportive housing.   A growing choice referred to as Life Lease Housing is also catching on across Canada with more than 300 projects.

Life lease housing allows residents to hold an interest in a property without actually owning.  The units are often less expensive than condominiums and are usually geared to individuals of the same age with shared interests and needs.

The life lease, sometimes called a quality assurance agreement, has been around since the 1970’s in Canada and is often connected with non-profit organizations or community groups.  It’s important to understand the agreement fully before signing on.  In Ontario and Saskatchewan, life leases allow residents to retain any appreciation their unit makes but in Alberta the agreements are not regulated and seniors may be vulnerable.

In most cases, the owner of a life lease has the right to occupy their selected unit and use common facilities as long as they want or are able to remain.  After making an initial investment to purchase their lease, the resident will pay a monthly fee to cover maintenance and insurance costs.  When the owner wants to sell or transfer the lease, market value (in Ontario) will determine the price.   Each life lease agreement may vary; be sure to carefully read and understand any document before signing.  Consult a professional if you have any questions or concerns.

To learn more about life lease housing in Ontario http://visit http://www.mah.gov.on.ca/AssetFactory.aspx?did=10455.