What are retirement village exit fees?
Retirement Living exit fees are commonly referred to as the Deferred Management Fee or DMF. To answer the question – we will dive a little deeper into our traditional DMF contract. It’s worth noting that Lendlease Retirement Living has a range of contracts to choose from, including no exit fee contracts. More on this in a moment.
The Deferred Management Fee (or exit fee) has been the most common financing model for Australian retirement villages for decades. Under this model, you defer payment of the Management Fee to Lendlease until after you have left the village. This means that you can buy a home at a more affordable price and defer part of the cost of living in a village until you leave. This contract is suitable for those who prefer to have more cash in the bank to enjoy during their retirement years.
The amount of the Deferred Management Fee (or exit fee) is dependent on the price of your preferred home, how long you live in the village and whether you opt to share in any capital gains. These variables make it difficult to provide an actual dollar figure for the fee.
Our expert sales team are on hand at our villages across the country, equipped with easy to use tools such as our ‘Here’s how it works’ cost calculator, to help you compare options at your chosen village. The calculator shows you the price you pay on entry and your estimated entitlement when you leave, based on 10 years of occupancy. You can see this calculation mapped out across the different contract options on one handy page, providing complete transparency so you can make an informed decision.
Don’t think the exit fee sounds right for you? At Lendlease Retirement Living, we have four contract options to consider:
- Prepaid plan – upfront payment of management fees whilst retaining any capital gain on exit;
- Refundable contribution – where the entry amount is repaid to you within 60 days of exit. Note there is no upfront management fee or exit fee under this option.
- Pay As You Go – where you pay in monthly instalments; and
- Deferred Management Fee – the traditional model with payment of management fees at exit (which we have covered above)
Watch the video below to find out more about all of our contract options.
At Lendlease Retirement Living we want you to be confident that you’ve made the right decision, which is why we introduced Our Promise. If you decide retirement living is not for you within your first 6 months of your stay, you can choose to end your contract, move out and we guarantee to refund the price you paid, completely free of DMF (exit fee) charges.
Find out more about this along with other peace of mind benefits that make up Our Promise to you.