Renting Or Owning
Consider this: If you already own your property where you currently live (i.e. UK) you may wish to hold onto your property and rent it. We can assure you that the rental income you will receive will pay a significant part, if not all, of your rental costs and service charges needed to live in one of our retirement villages. Plus, over the years, your property will gain a greater appreciation.
Ownership & legalities
Property ownership in retirement villages currently comes under the general legislation governing property ownership, purchase and sale. They have a simple form of legal title and occupancy rights, subject to ministerial approval for foreigners. Types of tenure The various forms of occupation or ownership rights of retirement villages are referred to as ‘tenure’. They will include provisions for resident consultation about the management of the community and the use of the village facilities.
The legal forms of tenure for buying into retirement villages are:
Life-Long Leasehold estates: The owner or developer continues to own the property, however you pay the market value of the unit in exchange for a period of time (in this case it would be life-long). This is generally the most common form of the tenure used by our developers. In the event that the life-long leasehold comes to a natural end, the amount paid by the leaseholder plus a nominal interest will be paid to the ‘executor’ or ‘administrator’ of the deceased leaseholder who shall carry out the will of the deceased.
Licences to occupy: The village developer or owner gives you a licence to occupy your unit which means you are permitted to stay under certain conditions such as not altering the property or surrounding gardens.
Company GIFA Token arrangement: The retirement village is still owned by the retirement village developer Stone Arch Retirement Villages Ltd. who sells you GIFA Token which entitle you to live in your unit.
Strata title ownership: Similar to regular strata-title schemes where the property is divided into units, this operates as a direct ownership structure. You pay the agreed purchase price, are registered on the title deed and become freehold owner of the property. However, unlike regular strata, the retirement village operator may have to approve you as a resident** (i.e. need to satisfy age exclusive (55yrs +) criteria before you sign a management contract with the village owner.
Community title ownership: This is a very rare form of tenure for retirement villages and operates on a direct ownership structure similar to strata, except in community title, the land is divided into ‘Lots’.
What services do rental developments offer?
Rental developments may offer the following services:
- Self-contained units with quality fittings
- The provision of all meals
- Laundry services
- Communal facilities
- Social activities / leisure and recreational facilities
- Secure environment
- Independent lifestyle