When a resident vacates the unit, it is refurbished at the resident’s cost and resold. Refurbishing the unit means fixing up the interior and includes carpeting and painting. A percentage of future Life right / Tenancy Right value is refunded to the resident. The value of the unit generally escalates annually depending on the property market.
Repayment of Tenancy Rights to the resident is based on a sliding scale:
- 0-6 months – 70% refund
- 7-24 months – 60% refund
- 25 + months – 50% refund
Refunds of a Tenancy Right are only paid out once the unit has been sold and the new Tenancy Right has been paid in full by the new resident. Refunds are paid into the residents bank account or the estate late bank account. Where agreements state that units have been financed by a third party (eg: children), then the refund will be paid out to that third party.
If a resident transfers to a Flower Foundation Care Centre, the due percentage is retained by the Foundation on behalf of the resident and these funds are used to cover a portion of the care levy. The resident will also receive a 10% discount on the care levy.
For couples who have purchased a Tenancy Right, the agreement is signed in both partners names, therefore, if one spouse transfers to the Care Centre, the remaining spouse stays on in the cottage. The refund of the Tenancy Right will be paid out to the remaining spouse or their estate when they vacate the cottage.