Does Life Lease really mean for “life”?
No. The name Life Lease is misleading but this was the name given to this form of tenure when it arrived in Canada from Europe where the leases were based on the resident’s lifetime in a unit. When the concept was introduced in Ontario, it was modeled after condominiums. The market value Life Lease model selected for Stillwaters Christian Retirement Community has no termination date, and this interest can be sold. Upon the death of one spouse or partner, the Life Lease interest automatically transfers to the surviving spouse or partner, at no cost. Upon death of the second spouse or partner, the Life Lease interest automatically transfers to his or her Estate. The resident’s Will then describes how the Life Lease interest or unit is to be disposed of or held by the beneficiaries. The beneficiary may retain the unit as an investment, and lease to individuals who qualify for residency until the beneficiary’s retirement, when the beneficiary may decide to take up residency or, may sell the Life Lease interest at the current market value.