Retirement Village Living Glossary

Term

Plain-English meaning

Buying into a Retirement Village

Obtaining a legal interest or contractual right to live in a retirement village home. This is not always the same as purchasing a home in the general property market.

Buyer / Purchaser

A person considering or entering into arrangements to obtain the right to occupy a retirement village home.

Residence Contract

The contract setting out the resident’s right to occupy their home and the parties’ rights and obligations, including payments, fees and exit arrangements.

Right to Occupy / Right to Reside

The legal right to live in a particular village home under the relevant contract. It does not necessarily mean that the resident owns the home or land.

Licence

A contractual permission to occupy a home without owning the land or home.

Leasehold

A form of tenure under which a resident leases a home for the period and on the terms set out in the relevant contract, rather than owning the freehold title.

Freehold

A form of property ownership under which a person owns the land and home, subject to applicable laws and registered interests.

Operator

The Levande entity responsible for operating or managing the retirement village.

Term

Plain-English meaning

Entry Payment / Ingoing Contribution

The amount paid in connection with obtaining the right to occupy a home. The amount and components of this are set out in the residence contract.

Purchase Price

A general term sometimes used to refer to the Entry Payment/ Ingoing Contribution/ amount paid to enter a home or acquire an interest in it. It should not be assumed to mean that the resident obtains freehold ownership.

Management Fee

A fee associated with the resident’s contractual arrangement. Depending on the selected contract, it may be paid on entry as an upfront fee or on departure as a deferred management fee.

Deferred Management Fee (DMF)

Under a Pay Later contract, the management fee is payable when the resident permanently vacates the village. The calculation and any cap are set out in the residence contract.

Upfront Fee

Under a Pay Upfront contract, the management fee is payable when the resident enters the village. Depending on when the resident permanently vacates the village, a portion of this may be repaid to the resident in accordance with the terms of the residence contract.

Recurring Charges / Service Fee / Maintenance Charge / Residence Charge

Regular charges payable while living in the village to contribute to services, facilities, maintenance, management and village operations.

Term

Plain-English meaning

Permanently Vacate

The point when the resident has stopped occupying the home, removed their belongings, returned the keys and completed any required notice period or other contractual steps.

New Entry Payment

The amount paid by the next resident for the right to occupy the same home after the outgoing resident leaves.

Capital Gain

A positive amount calculated by comparing what the outgoing resident originally paid with what the next resident pays, after deducting eligible sale-related costs. The resident’s entitlement depends on the contract and applicable law.

Capital Loss

A negative amount calculated by comparing what the outgoing resident originally paid with what the next resident pays, after deducting eligible sale-related costs. The resident’s responsibility depends on the contract and applicable law.

Exit Entitlement

The net amount payable to the outgoing resident after applying the payments, fees, deductions and adjustments set out in the residence contract.

Levande Departure Guarantee

Levande's commitment to residents with eligible contracts that their exit entitlement will be paid within the timeframe specified in their residence contract.

This provides residents with certainty about when they will receive their exit entitlement, even if a new resident has not yet moved into the home. The Levande Departure Guarantee is designed to provide peace of mind and greater financial certainty when leaving the village.

Reinstatement and Renovation Costs

Costs of restoring, repairing or improving a home after a resident leaves. Responsibility for these costs depends on the contract and applicable law.

Six-Month Change of Mind Guarantee

Levande's Six-Month Change of Mind Guarantee allows eligible residents to try retirement living with added confidence. If, within six months of moving in, a resident decides village living is not right for them, they may leave and receive a refund of their Entry Payment, subject to the terms and conditions of the guarantee. The guarantee is designed to provide peace of mind during the transition to retirement living.