Property Law & Conveyancing
Newcastle Conveyancing Lawyers For Retirement Villages Purchases Or Leases
If you are looking to move into a retirement village in Newcastle or the Hunter region, we recommend seeking the advice of an experienced retirement villages lawyer or our licensed conveyancers who have experience in retirement villages transactions.
There are several ways for people to own or occupy premises in a retirement village.
People often occupy retirement villages under long-term leases, under licence agreements or through Strata Title ownership.
We strongly recommend seeking the advice of an experienced lawyer whilst reviewing alternative retirement villages and certainly prior to signing any documents regarding occupation.
We can also assist you with interpreting the Retirement Villages Act and can provide you with a full understanding of your legal position as there are a number of pitfalls to be aware of including early exit fees.
Get the right legal advice on Retirement Villages from Our Property & conveyancing Lawyers.
Long Term Retirement Villages Leases
Under a long-term lease, the occupier is entitled to live in the property for a period of time pursuant to the lease (commonly 99 years). The property developer maintains ownership of the property but the lease can be transferred by the occupier. Beyond the lease agreement, a service agreement sets out the terms and conditions regarding the services provided. Long-term leases usually call for a trustee company to be appointed to take care of the financial aspects whilst a manager is appointed for day-to-day village management.
Under a licence agreement, the property developer maintains ownership of the property but the occupier provides a long-term loan or accommodation bond in return for the right to occupy the property. This is a more cost-effective approach as the cost of entry is substantially lower. The downside to this approach is forgoing the benefit of capital gains the property attracts as the market changes.
Strata Title ownership is the most secure form of occupation with the added benefit of body corporate membership, granting certain rights to contribute to the management of the retirement village. The downside to this approach is a higher cost of entry due to transfer duty on the purchase, however, the advantage is accruing capital gains on the property as the market changes.