A resident is granted a non-transferable 45 year lease to occupy an independent living Unit in the Village by the owner Springfields Village Pty Ltd (“Springfields”). The Lease terminates on the resident’s death, on the resident deciding to leave the Village or if the resident for health reasons cannot safely live in the Unit.
Residents use the Village’s Communal Amenities and Common Areas.
A Resident’s Lease is protected by:
Springfields is responsible for managing the Village in accordance with the law governing retirement villages and the terms and conditions of the Village Scheme contained in the Lease and in the strata lot owning residents’ Lifestyle Agreements.
When the resident is repaid the Lease Loan the resident pays an Amenities Fee to the Lessor for the resident’s:
The Amenities Fee is calculated on the new Lease Loan paid for the Unit by the next resident. If the Unit is not re-let the fee is calculated on the Unit’s Current Market Value.
The Fee is calculated on the number of days the resident occupies the Unit at 5% per annum in the first 2 years, then 4% per annum thereafter of the new Lease Loan but is capped after 7 years occupancy at 30% of the new Lease Loan.
To maintain the condition of the Village, there is a Village “Reserve Fund” which pays for repairs, renovations and capital replacements required for the Village’s buildings, Communal Amenities and Common Areas.The Reserve Fund is held on trust and administered by the Lessor.
When residents leave the Village and receive repayment of their Lease Loan and any Loan Growth Sum they make a contribution to the Reserve Fund. This is calculated on the number of days the resident occupies the Unit at 1.25% per annum in the first 2 years, then 1.5% thereafter of the new Lease Loan but is capped after 7 years occupancy at 10% of the new Lease Loan.
Operating Costs for the Village are shared equally between the Units and are paid by monthly instalments.They mainly comprise rates, water use and service charges, the costs of insurance, electricity, gas, waste removal, repairs, maintenance, external painting, cleaning and gardening expenses for Communal Amenities and Common Areas, costs of providing amenities and services and management costs. They are budgeted for annually, after consultation with the residents.
The actual Operating Costs are determined after the end of the financial year. Any surplus is applied either to residents’ future Operating Costs or to other purposes approved by a residents’ “special resolution that are for the general benefit of the Village’s residents.
If there is a deficit the residents can be required to pay their share of the shortfall amount.
Residents pay for the electricity, gas, telephone and other services they use in their Unit. They also pay for local authority rates and charges and Water Corporation use and service charges that are directly charged to their Unit.
An Administration Fee of $1000 is payable by the resident on entry. The fee covers administrative and legal expenses incurred by the Owner in connection with granting your Lease.
In general terms, in respect of the Unit the resident is responsible for:
The Lessor must maintain:
When the resident wishes to leave and have the Unit marketed, tradesmen are required to perform all necessary Refurbishment Works to restore the Unit more or less to the same condition it was in at the commencement of the lease term.
This work is arranged and supervised by the Lessor. The resident must pay for the Refurbishment Works.
The Lessor markets the Unit personally or by its marketing agent. The Unit can only be marketed in accordance with the marketing provisions of the scheme.
The Current Market Value of the Unit is agreed upon between the Lessor and the outgoing resident or failing this is determined by a Valuer being the Lease Loan amount that a new resident is prepared to pay for the Residence under the Village Scheme.
If the Residence is successfully marketed by a real estate agent, the outgoing resident must reimburse the Lessor for one half of fees paid to the agent.
Your Lease can be amended where this is required to comply with the law. Otherwise it can only be amended with your written agreement.
The above Key Terms sets out some of the important Village Scheme provisions in an abbreviated form only. It is not intended to be a comprehensive statement of all the important Village Scheme terms. You should refer to a copy of the Village Scheme and Residency Lease (“Scheme Lease”) and the Disclosure Booklet to obtain full details and a proper understanding of the Village Scheme.
If any statement in this Outline is inconsistent in whole or in part with any term or terms of the Scheme Lease, the term or terms of the Scheme Lease in question shall prevail over the terms of this Outline.
Based on contract version Nov 19