Monarchs Senior Living Logo with an M monogram and a butterfly in the centre and a crown above it and wording below it that reads Monarchs Senior Living

Life Right

What is a Life Right?

When you purchase a Life Right (LR), you actively secure sole and exclusive property usage of the unit for the remainder pf your or your spouse’s life.

This secure legal agreement, although not transferring physical ownership to the occupant, actively grants the occupant full legal protections associated with property ownership throughout their lifetime.

There are NO costs for the transfer duty or  VAT when obtaining a LR.

What does this mean for me within a Life Right?

As the holder of a Life Right, you actively possess the right to utilize the property throughout your lifetime. Thereafter, upon agreement of termination, which occurs either upon the holder’s passing, or if they choose to move out of the Monarchs Senior Living community, a portion of the initial capital sum us returned to the occupant or their estate.

Monarchs Senior Living remains motivated to maintain high property standards and overall upkeep. This will ensure capital appreciation, which in turn aligns with the interests of both the operator and the resident.

Life Rights are regulated by the Housing Schemes for Retired Persons Act (Act 65 of 1988) which gives residents protection and peace of mind about their security of tenure, and their capital.

How does a Monarchs Senior Living Life Right work?

You’ll provide an upfront capital sum when you join Monarchs. Upon leaving the village, a portion of this capital, minus a Deferred Management Levy (ranging from 0-30%) is returned to you or your family. This guarantees a minimum return of 70% of your original capital when you exit.

Here’s how it breaks down:

If you choose to leave within the first 12 months, you will receive 90% of your capital.

For those departing between 12 and 24 months, 80% of your capital is returned.

If you stay for over 24 months, you still get 70% of your capital upon departure.

Beyond 24 months, there is no additional Deferred Management Levy, ensuring you receive 70% of your capital.

This demonstrates the financial advantages of the LR Modal.

Benefits of this Model

Financial Benefits

A Life Right is equivalent to paying a rental upfront to a landlord for the lifetime of occupancy. The difference is that on a rental you get nothing back. With a Monarchs LR however, a minimum of 70% of your rentals or capital is returned.

The Life Right is essentially a “pay on exit” model. Which means that you only pay between 0% and 30% of the Life Right as a rental and only on exit.

A LR is an asset in your estate.

There is no VAT or transfer duty payable with a LR. 

Stability & Peace of Mind

As we get older, we worry about whether our lifetime savings and other investments will adequately provide for our future expenses. When it comes to providing for living and healthcare expenses, plus the maintenance concerns with owning a property. 

However, the fixed LR model provides you with certainty and peace of mind.

Your monthly living costs are determinable upfront, and for the rest of your life. In this way you can plan your finances, with no surprises, into the future.

Quality Standards

In this model the capital appreciation of the property accrues to the owner or operator rather than to the resident. This means that to maximise our return on the Life Rights, Monarchs Senior Living need to ensure that demand for our units remains high with premium standards.

Our success, therefore relies heavily on our resident’s satisfaction. In this way we are aligned to ensure we manage our senior living facilities optimally with our resident’s satisfaction and comfort a top priority.

 

Please feel free to contact us if you would like further information on how our processes at Monarchs works.