If you’ve been looking into retirement property options, you’ll probably have come across the term ‘Life Right’ and have a few questions about how it all works. Here, we answer some of the questions you may be asking, including why it’s worth considering an Evergreen Life Right. But first…

What is a Life Right?

This innovative purchase model provides you and your spouse or partner with a safe and secure home for life. How is it different to a traditional bricks-and-mortar property investment? Simply put, a Life Right is an investment in a lifestyle where most of the costs, risks and responsibilities of managing your own home are eliminated. What’s more, the right of occupation, which is what you’re acquiring when you buy into a Life Right development, is protected by the Housing Development Schemes for Retired Persons Act No. 65 of 1988, so once you’re settled into your new space, you’ll never have to worry about moving again.

Who is it for?

The Life Right model was designed specifically for the retirement housing market, with the aim of providing seniors with a stress-free retirement lifestyle in a fully managed and well-maintained environment.

Is the Life Right used anywhere else in the world?

Absolutely! In fact, it is the premier retirement model in North America where it’s called a Life Plan, as well as in Australia and New Zealand, where it is referred to as License to Occupy. In continental Europe, the Apartments for Life scheme is becoming more and more popular, while in the UK, there is a shift towards private retirement villages. Here, developers are choosing the Life Time Lease model, which runs on a Life Right basis.

What are the benefits of a Life Right?

The Life Right model is a good choice for many reasons:

• It guarantees you and your spouse or partner a safe and secure home for the remainder of your lives and is an asset in your estate.
• The cost of a Life Right is linked to the percentage of capital that is returned to your estate on cessation of the contract, so it can be tailored to fit your budget.
• There is no transfer duty, VAT, registration fees or capital gains tax associated with a Life Right and the law stipulates that the first two years’ levies must be declared to you at the outset of the agreement.
• In an emergency, a Life Right holder can renegotiate the capital return in order to liberate some of the capital that forms part of the agreement.
• The developer is responsible for maintaining, cleaning, painting, gardening, landscaping and securing the village. This means there are no special levies in a
• Life Right development.
• Hospitality, cleaning, maintenance, gardening and security are professionally managed in a Life Rights village.

Is a Life Right an investment?

While a Life Right is not a property investment and will not provide a financial return on investment, it is an investment in a lifestyle that eliminates many of the costs, risks and responsibilities of managing your own retirement accommodation.

What happens when the Life Right comes to an end?

When a Life Right is terminated – either because notice is given by the resident, or as a result of the death of the last surviving spouse or partner – the original capital is returned to the Life Right holder or the estate.

Why choose an Evergreen Life Right? As a Life Right holder at an Evergreen Lifestyle Village, you can rest assured that your security and maintenance requirements are completely taken care of to the highest standards. In addition, professional management of finance and administration, gardening and landscaping, health and safety, and the operation of amenities like the lifestyle centre, healthcare facility, swimming pool and fitness centre, library and games room leaves you free to enjoy the best years of your life. A monthly levy covers these services, and those of the village staff, who, under the leadership of the Village Manager, create an atmosphere where happy, healthy retirees come together in vibrant, thriving communities

If you’d like to know more about Life Rights, we’ve put together a fantastic ebook explaining all the details around Life Rights. Click the button below to download it so you can make an informed decision.