Frequently Asked Questions
We have tried to answer a few of the most commonly asked questions here for easy reference. If the answer to your question cannot be found here, please contact us and we will get back to you as soon as possible.
What exactly is meant by Life Right?
“Life Right” is simply the “right of occupation” of a portion of a housing development scheme (or village) for the duration of the lifetime of the occupier at no rent. Payment for the Life Right is by way of a lump sum. A levy is payable for the running expenses of the village.
The cottage or flat is occupied by an Occupier. The Occupier or Occupiers are written into the Life Right Agreement prior to occupation. The Life Right contract is written around the Occupiers, not the person or body who paid for the Life Right. The Life Right Agreement is cancelled by mutual agreement with the Society when the Occupier or the last of joint Occupiers dies or voluntarily signs a relinquishment form giving up their right of occupation. They might do this to move away from the village or to move into frail care.
Who pays for the Life Right?
The Life Right is paid for by a “Sponsor.” The Sponsor may be the occupier, but not necessarily. A trust may be the Sponsor and often children sponsor a Life Right for their parents. There can be and often is more than one Sponsor. The Life Right Agreement is, however, written around the Occupier. The Occupier is responsible for the levy, not the Sponsor. The Sponsor is only referred to in three instances. Firstly to identify the Sponsor, secondly to sign the agreement as the Sponsor and finally the Sponsor is referred to as the person to receive the Life Right refund.
What and how much is the Sponsorship Amount?
The Sponsorship Amount is the amount paid for, or the purchase price of, the Life Right to occupy a cottage or flat in one of the villages controlled by the Society. The Sponsorship amount is loosely based on the price for a similar unit in the local community.
Who pays for Transfers and Commissions?
As the cottages or flats are owned by the Society and the purchase made is of a Life Right to occupy a cottage or flat, there are no transfer fees. There are similarly no lawyers fees or conveyancing fees. The sales of Life Rights are concluded by our staff within the villages and no commissions are payable.
What and how much is the Refund?
The refund is the full value of the Sponsorship Amount paid back to the Sponsor. The refund is repaid when the Life Right has been re-purchased and paid for by a subsequent Sponsor. The refund is subject to the conditions of the Life Right Agreement.
What does the levy cover and does it increase every year?
The levy covers the running costs of the villages. This includes but is not limited to rates, water and sanitation, security, insurance, garden services, bus services, housekeeping, bank charges, audit fee, and staff salaries and communal electricity consumption. Electricity and telephone charges are levied separately and are based on the resident’s actual usage. Levies do increase each year and are based on the actual cost of running the villages. Capital expenditure items such as vehicles, lawn mowers, re-tarring of roads and re-modelling of cottages is not a levy cost but a capital account cost. Similarly all the depreciation is paid in the head office account and not by the residents in the village levies.
What happens if your name comes up for a unit and you are not ready?
You can turn down the offer of a cottage or flat without losing your place on the waiting list. As a waiting list member you have paid to be on the list and to move up as somebody ahead of you buys a unit, hence you cannot move down the list. It is your right to turn down a unit offered to you. You could also purchase the unit and leave it vacant for the most part of the year only visiting occasionally until you are ready to take up full time occupation.
Are you allowed to bring pets into the villages?
The Margate Retirement Village does not allow cats or dogs. Both Umdoni and Ramsgate Retirement Villages allow small dogs but no cats. Caged birds are allowed in all three villages.
Does each village have a Frail Care Unit?
Margate Retirement Village has a 70 bed frail care facility. This facility is also used by the Ramsgate Retirement Village. Umdoni Retirement Village has a 20 bed frail care facility.
How does the Waiting List work?
Hibiscus Retirement Villages has two waiting lists. One for the Margate and Ramsgate Retirement Villages (the Margate list) and one for Umdoni Retirement Village (the Umdoni list). A prospective resident must be on one of the two waiting lists. They may, however, be on both waiting lists.
A waiting list member is given a unique number preceded by the letter V or U denoting the waiting list. This list number is not the position of the person on the waiting list. The position changes as people on the list move into the villages. Once they have moved into the village their name is removed from the list unless they have asked for it to remain on the list to secure a different unit in the future.
To be on the waiting list a prospective resident must also be a member of the Society. The cost of membership is minimal and the waiting list fee is more substantial.
A waiting list member specifies the number of bedrooms they require and also the year they would like to move into the village. If a waiting list member has specifically asked for a three bedroom unit in the Umdoni Retirement Village and they want the unit to be available in five years hence, the Society will only contact them with available three bedroom units a year before their required date. If a waiting list member has specified a one or two bedroom unit in the Retirement Village for next year, they will be contacted with available units if their position on the waiting list justifies the contact. A person who is in position number 200 for a one bedroom unit will not be contacted for an available unit unless the 199 before them have turned the available unit down.
Waiting list members may not cede their position on the waiting list to another person. The waiting list member must become the Occupier listed in the Life Right Agreement with the Society.