Life Right & Pricing
How the ‘Life Right’ works
The “Life Right”
Residents acquire a right to use and occupy a cottage for life in return for the payment of an interest free loan to the PVT. This form of sale is termed a “Life Right”. The Life Right agreement gives the “Occupant” i.e. the person who enters into the Agreement, the right to occupy the cottage for his life and that of his current spouse. A Life Right is an accepted form of title in South Africa. It is recognised by The Housing Schemes for Retired Persons Act No. 65 of 1988, as amended. Local Cape examples of Life Right retirement villages include Pinewood Village (ARP&P), Woodside Village (Fedsure Life), Bridgewater Manor and Norfolk Place in Kenilworth (St Luke’s). .
Cottages in Peers Village can be secured on signature of the Life Right Agreement and paying a 10% deposit, which will be invested by the PVT Trust, with interest accruing to the purchaser. The balance of the purchase price (i.e. the loan consideration) is due on the agreed date of commencement of the Life Right. A period of 2 – 3 months is allowed for the payment of the balance.
Termination of the Life Right
Occupancy of a cottage terminates either on the death of the occupant or the surviving spouse. It can also terminates if the occupant decides to leave the village. On termination, the original loan plus any improvements approved in writing by the PVT, plus 40% of any profit on re-sale will be refunded to the occupant’s estate.
The only amounts deducted will be what is required to reinstate the house to a saleable condition including inter alia, painting the interior, cleaning the carpets/floor coverings, repair any damage plus sales commission at 3,5% these costs are shared on a 40/60 basis. The refund is made out of the proceeds of the new loan from the next occupant, when received by PVT.
Cottage Price Range
|Bedrooms||Garage||Cottage Area||Price Range|
|1||1||60-70 SqM||R1,590,000 to R1,800,000|
|2||1 or 2||74-90 SqM||R1,850,00 to R 2,500,000|
|3||1 or 2||89-117 SqM||R2,400,000 to R 3,010,000|
Average Monthly Levies – calculated at R 29.15 per Sq Meter.(Cottage Garage Area)