No development is exactly like another. Each one is will have some qualities that are unique.  Here are some common features:

• Seniors sell their present home and use the equity to pay for the lease.

• Lease value is paid up front and will be set at approximately the break even point.  That is, the total cost of producing the unit is approximately the lease cost.  Costs include land, architect and consultant fees, development charges, insurance, and construction costs.

• A monthly fee is charged for management, maintenance, services, and taxes.

• Should the resident decide to leave, or become to ill to stay, the lease is taken back by the corporation or transferred to another person.   .

• On leaving, nearly all of the equity put in is returned to the resident or the resident's estate. Some developments keep back 5% to 10% for transition costs. Some projects guarantee the amount returned, while others let the market decide how much is returned to the resident. 

• The lease has terms which insure the nature and integrity of the development as being strictly for seniors.

For the most projects, one should think of this as being more like a condominium purchase.  Condo's provide title to property while a life lease provides a right to occupy which can be sold.  Most residents do not sense any difference between the two in daily life or in selling at the other end.

There are wide variations.  Some projects have decreasing equity which goes for meals and supportive services, so make sure you understand all the details up front.  We would be please to answer any email questions on this.