MHA has invested in over 400 rental units which provide reasonably priced accommodation for those who are unable to afford to invest in a life right unit. These units are always in high demand. You will be required to enter into a standard lease agreement, and you will be expected to adhere to the conditions during your tenancy.
What is a PFU?
A PFU is a unit that is occupied by an occupant(s) for the life of those individuals or as long as they wish, or are fit to occupy the unit, in return for the payment of a contribution. It is governed in terms of the Housing Development Schemes for Retired Persons Act, No. 65 of 1988, which was promulgated to protect the rights of retired persons.
Who owns the PFU?
At all times, the PFU is owned by MHA, and at no time does the title of ownership transfer to the occupant(s). However, the resident has the benefit of occupation, subject to certain obligations.
How is the right to occupation protected?
A life right is a unique right to occupation, and therefore a comprehensive legal document must be entered into with MHA. This contract is fully compliant with the law and protects the interests of the occupant and MHA.
Is the life right transferable?
The right belongs to the parties to an MHA Housing Unit Agreement, and as such it is not transferable. A unit may also not be sublet to another individual or individuals. The rights may, however, be passed on to a spouse.
How much will I get back?
When the PFU is vacated, the life right occupant or his/her estate will receive a percentage of the MHA value of the PFU at that time, less costs incurred for the sale and/or restoration of the unit. The percentage is stipulated in the Housing Unit Agreement. MHA has a very attractive life right scheme where the occupant participates in the capital growth of the unit. Very often the seller receives more than what was paid for the PFU. MHA villages offer a range of PFU accommodation, from bachelor units, one bedroom units and even luxury two bedroom units with a study and incorporated lock-up garage.
Will I be allowed to have visitors stay over?
You may have visitors stay overnight, but you are always requested to advise management so that proper controls may be enforced. This is in the interest of the harmonious living of all retirement village residents. For example, special parking arrangements may have to be made.
What is the levy?
The levy is paid by the occupant each month to meet the day to day operational expenditure incurred to ensure the efficient and effective running of a village. The village running costs are calculated and allocated across all the PFU's in a village to ensure equity and fairness to all.
What does this include?
It includes, but is not limited to: administration expenses, staff salaries and wages, municipal services, building insurance, building maintenance, cleaning, security, etc. The more comprehensive the services, the higher the monthly levy become.
Is the levy fixed?
It is important to realise that the annual expenses increase, usually in line with inflation, and therefore it is inevitable that levies also increase. Life right occupants must budget for annual increases of levies.
What does the levy not include?
The levy does not include electricity consumption of a unit, water consumption (if a water meter has been installed), insurance of the contents of a unit, and the maintenance of the interior of a unit. It will also not include the services of a private cleaner, gardener and/or care giver should you elect to make use of these additional services.
What alterations can you make to a unit?
Alterations may only be made at the expense of the occupant and with the written consent of MHA. But, bear in mind that when vacating you may be required to return the unit to its original state, and that would also be for the account of the occupant(s).
How are PFU's valued?
PFU's are revalued annually on 01 April by MHA. The new values are based on market trends and availability, bearing in mind the need to remain affordable. The value will depend on the location of the village, type of unit, its age, as well as the facilities offered.
What do support care services include?
This is a service rendered by care workers to the residents in the village and is aimed at giving support and assistance to residents to enable them to remain independent and in their units for as long as possible. The service may include assistance with dressing and undressing, bathing/showering, making beds and supervision of medication. There is an additional cost for these services.