A resident is granted a non-transferable 49 year lease to occupy an independent living Residence in the Village by the owner Kingsley Lakeside Village Pty Ltd (“Kingsley”). 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 Residence.
Residents have the use of the Village’s Communal Amenities and Common Areas.
A Resident’s Lease is protected by:
· the conditions of the Lease;
· the provisions of the Retirement Villages Act 1992 which includes statutory charge securing the resident’s Tenure Sum and a Memorial registered on the village land title.
Kingsley 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.
· No rent is paid for the Lease. Instead, the resident lends to Kingsley a"Tenure Sum" free of any interest, for the duration of the Lease, and until a replacement resident Leases the Residence.
· The Tenure Sum equals the market value of the Residence under the “Village Scheme” terms.
· When leaving the Village, the outgoing resident and Kingsley agree upon “Current Market Value” of the Residence. Failing agreement,it is determined by a valuer.
· The Tenure Sum is repaid to the outgoing resident by Kingsley even if the Tenure Sum paid by the next resident is a lesser amount.
· If the Residence is re-let for a Current Market Value that exceeds the Tenure Sum paid by the departing resident, that excess,called the “Loan Growth Sum”, is paid by Kingsley to the departing resident.
When the resident is repaid the Tenure Sum, the resident pays a Deferred Fee to Kingsley for the resident’s:
· occupancy and use of the Residence and its amenities; and
· shared available use of the Village’s Communal Amenities and Common Areas.
The Deferred Fee is calculated on the Current Market Value of the Residence as last determined by agreement or valuation (called “Standard Lease Value”) and paid for the Residence by the next resident.
If the Residence is not re-let by 36 months after it is vacated or is not re-let because Kingsley chooses not to market the Residence, the Deferred Fee is calculated on the Residence’s Standard Lease Value as last determined or agreed.
The Deferred Fee is calculated on the number of days the Residence is occupied by the resident and until the Resident “Permanently Vacates” the Residence (called “Fee Days”) at 3% per annum of the Standard Lease Value but is capped after 2,555 Fee Days ( 7 years) at 21%of that Standard Lease Value.
To maintain the condition of the Village, there is a Village “Reserve Fund” which pays for repairs to, replacements in, renovations and maintenance of the Communal Amenities, the Common Areas and the Residences which are of a major nature and are not payable out of Operating Costs.
When residents leave the Village and receive repayment of their Tenure Sum and any Loan Growth Sum they make a contribution to the Reserve Fund. This is calculated on the number of Fee Days used to calculate the Deferred Fee as 1.5% per annum of the Standard Lease Value last agreed or determined but is capped after 2,555 Fee Days ( 7 years) at 10.5% of that Standard Lease Value.
Operating Costs for the Village are divided into two categories:
“Communal Amenities Operating Costs” (CAOC’s) being those Operating Costs that relate to, and if not directly charged to, can be fairly apportioned to, the Village’s Communal Amenities.
“General Operating Costs” (GOCs) being those Operating Costs other than CAOCs.
CAOCs are shared equally between all Village residences.
GOCs are shared between the Village residences in the same proportion that the capital value of each leased residence bears to the total capital value of the Village.
Operating Costs generally comprise the Lessor’s outgoings ,costs and expenses incurred for the maintenance, management and operation of the Village Scheme and include but are not limited to local authority general rates and charges, Water Corporation service and consumption charges for water, sewerage and drainage, the costs of Village buildings insurance and other risks 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. Refer to the Lease clause 1.2 definition and Schedule 1 Item 6 for full details.
Operating Costs 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 short fall amount.
Residents pay for the electricity, gas, telephone and other utilities or services they use in or are charged to their Residence.
An Administration Fee of $560.00 is payable by the resident on entry. The fee covers administrative expenses incurred by Kingsley in connection with contracting for and granting of your Lease. It does not cover pre-contractual disclosure costs which are borne by Kingsley.
In general terms, in respect of the Residence the resident is responsible for:
· keeping the interior and its fixtures and fittings,clean, well painted and in good tenantable repair and condition but are not liable for structural repairs;
· keeping the exterior areas and gardens tidy and well maintained;
· keeping waste pipes clean and functioning; and
· Supplying, operating, repairing, upgrading,maintaining and if appropriate removing and replacing:
∙ internal improvements made by the resident or former resident;
∙ equipment added or substituted for existing equipment;
∙ all floor surfaces, carpets, tiles, linoleum, or other floor coverings;
∙ all curtains, blinds, tiles and wallpaper;
∙ all light globes, light tubes, lost keys and access mechanisms or cards;
∙ all air conditioning equipment and ceiling fans;
∙ all fly screens to doors and windows;
∙ requested and approved installations;
Kingsley must maintain:
· the structure of the Village’s residences, other buildings and the Common Areas; and
· the Communal Amenities, the Common Areas and their fixtures and fittings.
When the resident wishes to leave and have the Residence marketed, tradesmen are required to perform all necessary Refurbishment Works to restore the Residence more or less to the same condition it was in at the commencement of the lease term.
This work is arranged and supervised by Kingsley. The resident must pay for the Refurbishment Works.
Kingsley as owner markets the Residence personally or by its marketing agent. The Residence can only be marketed in accordance with the marketing provisions of the scheme.
The Current Market Value of the Residence is agreed upon between Kingsley and the outgoing resident or failing this is determined by a Valuer being the New Tenure Sum that a new resident is prepared to lend to Kingsley for a lease the Residence under the Village Scheme.
If the Residence is successfully marketed by a real estate agent, the outgoing resident must reimburse Kingsley for one half of fees paid to the agent net of any available input tax credit.
A Residence Lease can be amended where this is required to comply with the law. Otherwise it can only be amended with the resident’s 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.