Features and differences
Services offered
Most sponsors provide a basic level of maintenance that includes mowing lawns and shovelling snow. Some sponsors also change furnace filters, fix plumbing or electrical wiring, or monitor both the interior and exterior of the home while lease holders are away.
Other sponsors offer a wider range of services including laundry, housekeeping and meals, and help with bathing, transportation and reminders to take medication. These additional services may be included in the monthly fees or may be offered on an optional basis for an extra fee.
Religious or cultural community
Some projects offer a specific religious or cultural environment. Buyers of these life lease interests are often attracted by the option of living somewhere that offers:
- services in a language other than English or French
- programs that are specific to a culture
Length of lease
A life lease typically lasts until:
- the end of the lease holder’s life
- the lease holder decides to move
Fixed term lease
A small minority of projects set a fixed term (for example, 49 years). The life lease does not expire at the end of the term—it is meant to be renewed if the occupancy goes past the term.
Carefully review the life lease agreement to see how the duration of occupancy is defined. If a fixed term is specified, ask about the renewal process.
Spouse takeover
If a lease holder who passes away has a spouse, then the life lease is usually extended for the term of the life of the spouse.
The surviving spouse must meet the sponsor’s eligibility criteria. They may also have to pay a transfer fee.
Difference between rental, ownership and life leases
All models of life lease housing share some characteristics of both rental and ownership.
See table 1 for some of the similarities and differences between rental, condominium ownership and market value life lease housing models.
| Features | Rental | Condominium ownership | Market value life lease |
|---|---|---|---|
| Own property | No | Yes | No |
| Have equity | No | Yes | Yes |
| Registered on title to land | No | Yes | Sometimes but rarely |
| Pay monthly fee | Yes | Yes | Yes |
| Participate in management | No | Yes | Sometimes. Usually a residents’ council makes recommendations to the board |
Difference between life leases and land leases
There is another form of housing with a similar name, land lease housing, which may be confused with life lease housing.
To help you understand the similarities and differences between life leases and land leases, please see table 2.
| Topic | Land lease | Life lease |
|---|---|---|
| Ownership | In a land lease, the dwelling is owned by the resident and the land on which the dwelling sits is leased. | Life lease ownership means holding an “interest in property” providing the right to live in the unit, usually for the duration of the lease holder’s life or until the lease holder decides to move. |
| Payment | Rent is paid to the land owner (landlord) of the land lease community, and landlords may provide services and facilities to the community that are intended for the common use and enjoyment of the tenants and that are included in their rent. | Life lease holders purchase their units by paying a lump sum upfront and then pay monthly fees for maintenance and property taxes. |
| Transfer | Owned homes can be bought and sold by successive residents who, in turn, rent the lot from the landlord. | Life leases can be sold by the life lease holder and inherited by heirs. However, while inheritors may profit from a sale of the lease, they cannot move into the unit without first applying to the sponsor and meeting their eligibility criteria. |
| The Residential Tenancies Act (RTA) | The RTA applies to mobile home parks and land lease communities. | The RTA does not apply to life lease housing, when there is a direct relationship between a lease holder and the project sponsor. |