Life Lease


We want to make your move to a Christenson retirement community as easy and affordable as possible. With our leasing and rental options you can have the independent, supportive, or assisted living lifestyle you've been looking for. With our financial options you will be able to Age in Place in a community that offers various amenities and activities for an active adult lifestyle and senior care and healthcare support (including dementia care and alzheimer's care), for those that need it.

Life Lease is an option for our Residents to reduce their monthly Net Rent in a Christenson Communities luxury retirement community. At any time in the first three months of their Lease, a Resident may loan, at 0%, to their community, any amount from 35 up to 100% of their Suite Value.

Net Rent Reduction:

 

Their monthly Net Rent is reduced at a rate of 8% per year. For example:

Suite Value$300,000
Loan Amount @ 100%$300,000
Net Rent Reduction @ 8% per annum$24,000
Monthly Reduction$2,000 (Divide by 12)
 

Typical Situation Before Life Lease Loan*

 
Net Rent (Monthly)$2,000
Op. Costs @ $.85$630
Total Rent (Before LL)$2630
Total Rent After Loan
Net Rent
Op Costs @ 0.85 

0
$630
Total Rent (After LL):$630

 

Lower Income Needed Each Month:

 

For a Resident who has a home with equity in it to sell, monthly housing costs can be reduced to the monthly operating costs, only.

These monthly Operating Costs include all property taxes, utilities, maintenance of the common area, and in the suite, and property management.

Only telephone and internet are extra. 

These Operating Costs are the actual costs incurred in running the community, including a property management fee, and usually can go up roughly 5 to 6% per year, based upon actual property tax and utility charge increases, on the Operating Costs, only.

Lower Income Taxes Paid, Reduced Claw Backs of OAS and CPP Payments:

 

This Net Rent reduction can normally bring a Resident's monthly housing costs below their Old Age Security (OAS) and Canada Pension Plan (CPP) monthly payments (usually around $1,500 per month, depending on the individual's personal circumstances).

Security of Loan Funds:

 

The Optional Life Lease Loan is secured by a second mortgage if it is less than 100% against the legal title of the community. A Trust Agreement with a security corporation is established to manage these loan funds until occupance.

These loan proceeds are used to build the project and for any other purposes, but the total mortgages against the community must not exceed the appraised market value of the total property, at the time the Loan is made.

Third Party Legal or Accounting Advice

 

It is recommended that each Resident get legal or accounting advice for their own personal situation.

Notice or Termination:

 

When a Resident wishes to move out of the community, or to receive all or some of their loan funds back, 90 day written notice, from the end of a month, is given, and all loan funds, less a 8% Termination Fee, are returned within 30 days after the 90 day written notice period.

This gives the Resident the freedom to relocate, without the difficulty of having to sell a property.

This 8% Termination Fee is used to by the Landlord to remarket the suite, and to repair any normal wear and tear. Any damages or renovations to the suite are charged in addition to and above the Termination Fee.

Queing Effect:

 

Less than 6% of the total number of suites in the community may be available for release at any one time (to avoid depressing the suite values).

Life Lease:

 

Lease with Optional Loan Agreement (Life Lease) communities are treated as rental properties in Manitoba, the only province where Life Lease legislation currently exists.

Life Lease Rental Housing - Manitoba Act

Life Lease Housing Resource Guide - Ontario

In Alberta, rental properties are governed by the Residential Tenancies Act.

Alberta RTA

 

Life Lease


We want to make your move to a Christenson retirement community as easy and affordable as possible. With our leasing and rental options you can have the independent, supportive, or assisted living lifestyle you've been looking for. With our financial options you will be able to Age in Place in a community that offers various amenities and activities for an active adult lifestyle and senior care and healthcare support (including dementia care and alzheimer's care), for those that need it.

Life Lease is an option for our Residents to reduce their monthly Net Rent in a Christenson Communities luxury retirement community. At any time in the first three months of their Lease, a Resident may loan, at 0%, to their community, any amount from 35 up to 100% of their Suite Value.

Net Rent Reduction:

 

Their monthly Net Rent is reduced at a rate of 8% per year. For example:

Suite Value$300,000
Loan Amount @ 100%$300,000
Net Rent Reduction @ 8% per annum$24,000
Monthly Reduction$2,000 (Divide by 12)
 

Typical Situation Before Life Lease Loan*

 
Net Rent (Monthly)$2,000
Op. Costs @ $.85$630
Total Rent (Before LL)$2630
Total Rent After Loan
Net Rent
Op Costs @ 0.85 

0
$630
Total Rent (After LL):$630

 

Lower Income Needed Each Month:

 

For a Resident who has a home with equity in it to sell, monthly housing costs can be reduced to the monthly operating costs, only.

These monthly Operating Costs include all property taxes, utilities, maintenance of the common area, and in the suite, and property management.

Only telephone and internet are extra. 

These Operating Costs are the actual costs incurred in running the community, including a property management fee, and usually can go up roughly 5 to 6% per year, based upon actual property tax and utility charge increases, on the Operating Costs, only.

Lower Income Taxes Paid, Reduced Claw Backs of OAS and CPP Payments:

 

This Net Rent reduction can normally bring a Resident's monthly housing costs below their Old Age Security (OAS) and Canada Pension Plan (CPP) monthly payments (usually around $1,500 per month, depending on the individual's personal circumstances).

Security of Loan Funds:

 

The Optional Life Lease Loan is secured by a second mortgage if it is less than 100% against the legal title of the community. A Trust Agreement with a security corporation is established to manage these loan funds until occupance.

These loan proceeds are used to build the project and for any other purposes, but the total mortgages against the community must not exceed the appraised market value of the total property, at the time the Loan is made.

Third Party Legal or Accounting Advice

 

It is recommended that each Resident get legal or accounting advice for their own personal situation.

Notice or Termination:

 

When a Resident wishes to move out of the community, or to receive all or some of their loan funds back, 90 day written notice, from the end of a month, is given, and all loan funds, less a 8% Termination Fee, are returned within 30 days after the 90 day written notice period.

This gives the Resident the freedom to relocate, without the difficulty of having to sell a property.

This 8% Termination Fee is used to by the Landlord to remarket the suite, and to repair any normal wear and tear. Any damages or renovations to the suite are charged in addition to and above the Termination Fee.

Queing Effect:

 

Less than 6% of the total number of suites in the community may be available for release at any one time (to avoid depressing the suite values).

Life Lease:

 

Lease with Optional Loan Agreement (Life Lease) communities are treated as rental properties in Manitoba, the only province where Life Lease legislation currently exists.

Life Lease Rental Housing - Manitoba Act

Life Lease Housing Resource Guide - Ontario

In Alberta, rental properties are governed by the Residential Tenancies Act.

Alberta RTA