When starting to investigate options for retirement living, many may be surprised to find that a significant proportion of these properties, in fact the majority, are offered on some model of leasehold. Whether this is rental for a 5- or 10-year period or a 99-year lease, this is now common practice across the world, particularly where retirement communities are maturing in the US, UK, Australia and now South East Asia.
The Otium Phuket properties are available for sale as a 30-year leasehold which automatically renews for an additional 30 years up until 90 years in total.
So why are retirement properties leasehold rather than freehold and what is the benefit?
Otium has a broad suite of facilities and services that are designed specifically for the over 50s. The large communal spaces, world class leisure facilities and landscaped gardens, together with the individual homes make up the Otium Village. As with many developments, the upkeep and upgrading of the property is the responsibility of the operator. These costs are covered in the Monthly Management Fee.
With a leasehold system, Otium, as the operator, is in a position to ensure that the budget is allocated in the best possible way. All properties and facilities are considered to ensure that the residents environment remains pristine and a thoroughly uplifting place to live. In addition, Otium will manage the upkeep of the buildings and look to ensure that each individual property remains in excellent condition, ensuring future investment and resale value for the owners.
In your retirement, Otium want to make sure you have less to worry about and the convenience of having your investment looked after. Leasehold for Otium retirement properties provides the surety that the overall property will remain at the desired standard and that facilities and technology are upgraded to enhance the present and future value of your property.
In contrast, freehold arrangements required upkeep of individual properties by their owners and consensus by managing committee of the budget spend. In cases this may result in different standards amongst the individual properties and investment in selected communal facilities.