WHAT IS A 'LIFE LEASE'?
There are five different styles of Life Lease in Canada. The Life Lease model that we use is based upon a private corporation obtaining a bulk long term mortgage and the Life Lease residents providing a Refundable Entrance Fee and paying a rent on the monthly basis.
This "Life Lease" model requires the residents contribute a sizeable "deposit" to help finance the cost of developing and constructing the Project. Payment of this "Refundable Entrance Fee" not only provides security of tenure but the right to occupy the Suite for as long as they need to.
A "Life Lease" may be terminated with notice the same way as any regular residential lease. The entrance fees are refundable upon termination from the Entrance Fee Refund Fund and by replacement from the waiting list under conditions outlined in the lease agreement (and governed by legislation in Manitoba).
WHAT IS THE ENTRANCE FEE?
The Entrance Fee is the amount of a "deposit" required to purchase the Life Lease. For instance in the case of the Kin Place in Virden, minimum entrance fees range from $50,000.00 to $75,500.00 depending on suite size.
IF A TENANT ENTERS INTO A LIFE LEASE, DO THEY OWN THEIR UNIT?
No. When a person lives in a life lease unit, they are a tenant. They don’t own their unit or any part of the life lease complex. They have the right to occupy the unit for the time prescribed in their life lease
RIGHT TO OCCUPY:
What the life lease holder owns. When a person buys a life lease interest, they do
not buy property. Ownership of the unit remains with the sponsor. The life lease agreement gives the
buyer the right to occupy (live in) the unit for a long period of time, usually for their lifetime
KIN PLACE HISTORY
February 1996 Virden Kinsmen Club (Doyle Piwniuk was a Kinsmen at that time) undertook a project to provide housing solution for 55+ population
The project included 21 suite complex, with underground heated parking
Following the commitment of 18 tenants, construction began
Although the Virden Kinsmen Club disbanded in about 2005, the club members that sat on the Virden Kin Place Board continued to do so.
In 2012, Virden Kin Place transitioned from a not for profit management, to private ownership (MFS Enterprises)
◦ Roger and Cindy Branum
◦ Doyle and Michelle Piwniuk
John Dunfield remains in his role as Operations Manager
New ownership group offers the following:
◦ Historical knowledge and understanding of Virden Kin Place
◦ Strong financial management using a business model that has been successful, ensuring the long term viability for years to come
◦ Construction expertise and access to skilled labor ensures that the complex remains in good repair at all times