Independent Living

Life Rights Explained

K
L
What is a Life Right?

Individuals (aged 60+) gain occupancy rights in MHA's units for their lifetime or their spouse's, without ownership. They pay the initial contribution and monthly levies. On vacancy, MHA sells the right, considering annual unit value appreciation or revaluation.

Methodist Homes model 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.

K
L
Who owns Unit sold on a Life Rights basis?

At all times, the Unit 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.

K
L
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 those of MHA.

K
L
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.

K
L
How much will I get back?

The Repayment Percentage is the amount payable to the occupant after disposal of the right of occupation, less a retention by MHA of a percentage thereof on a by month pro-rated sliding scale of 10% per year of occupation up to a maximum of 50% after 5 years. The calculation of the Repayment Percentage in cases of occupation of less than 5 years is calculated at 10% per completed year with an additional 0,833% per month of life right ownership. Costs of repairing and/or restoring the unit are charged to the outgoing resident and recovered prior to the Lie Right Refund payment.

MHA allocates retained commissions to the Village (2%) and the remaining 98% to the organisation, to be utilised for group improvements, and new capital espenditure projects for the good of residents.

K
L
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. It is also essential that management are aware of persons on the premises in cases of any unforseen emergency.

K
L
What is the levy and what does it cover?

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 units in a village to ensure equity and fairness to all.

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 becomes.

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.

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.

K
L
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).

K
L
How are life rights units valued?

Life rights units 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.

K
L
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 a nominal additional cost for these services.

Rented Units

Methodist Homes for the Aged (MHA) offers over 400 rental units, providing affordable accommodation for individuals who cannot invest in a Life Right unit. These rental units are consistently in high demand. Upon leasing, you will enter into a standard lease agreement and are expected to comply with the terms throughout your tenancy.