A few common questions about the advantages of land lease
There are several types of home ownership in Ontario: freehold, condominium and land lease. Each form of ownership has its advantages. Pine Meadows is a very successful land lease community operating over the past 20 years with exclusive amenities and incredible lifestyle opportunities.
Why does it make sense to own my home, yet lease the land it sits on?
There are some real dollar-and-cents advantages to land lease. To begin with, you pay less on the purchase price of your home because you pay only for the home and not the lot. By leasing your land you avoid the large capital outlay of purchasing a serviced lot. Many people have taken advantage of a capital infusion when they downsized from their original family home to enjoy leisure or travel opportunities, earned interest or cash flow management.
A second advantage is the investment in the superior quality of a Pine Meadows home, all of which are built to much higher standards of construction. In fact, it’s safe to say that even after 20 years Pine Meadows’ homes are built to the highest standards of any adult lifestyle community in Ontario. These higher standards, which include greater insulation levels and closed loop ground source heat pumps, save you money on heating and cooling your home every day of the year.
A third advantage is the larger lot size and extensive parkland and green space, which extend your privacy and enjoyment of your yard. With its low density housing and natural setting, Pine Meadows has aesthetic appeal not available in most communities.
Finally, and perhaps most importantly, land lease is a legal and effective way to ensure Pine Meadows remains an adult lifestyle community. The lease at Pine Meadows is designed to protect you, and is unique to this community. We would be pleased to review our lease with you.
Why is the lease only for 20 years?
The planning act of Ontario stipulates that a lease cannot exceed this time limit. It can, however, be renewed at that time.
What happens to the lease if I wish to sell my home?
A new 20-year lease can be drawn up. Since the project started over 20 years ago, this practice has occurred well over 100 times. The community is perpetuated indefinitely and home owner investment is protected.
How do I know the developer will not raise the land lease fee to some exorbitant price?
All land lease communities are bound by the Residential Tenancies Act (2006). Any fee increases conform to the Annual CPI (Consumer Price Index). If there is a change to the legislation, Pine Meadows will adhere to the new regulations.
Why not hand the management of the community over to a residents' association?
With the developer responsible for the creation and maintenance of the community, the same consistent and high standards are kept both in regard to the property itself and the management of the community. The developer also works objectively on behalf of the community without catering to special interest groups. The Residents’ Association works directly with the developer on maintenance operations.
How do I know the maintenance will be reasonable and represent good standards?
The lease stipulates that maintenance will be the cost plus a modest administration fee. A Resident Maintenance Cost Review Committee works actively with the landlord of Pine Meadows to review maintenance items and costs on a monthly basis. In addition, maintenance standards can be enforced by the Township through legally binding agreements.
What restrictions are there in the lease?
To keep standards high and preserve the integrity of the community, there are some common courtesy conditions in the lease. For instance, pets must be on a leash and “poop ‘n scoop” is mandatory. For landscaping, call before you dig to avoid interrupting services or obstructing maintenance activity. Fences and sheds are not allowed as they would substantially increase the cost of maintenance and detract from the park-like setting. Changes to the exterior of the home must be approved.
How do I sell my home?
Homes can be listed through real estate, sold privately, or through our Pine Meadows resale office. Under the rules of the Tenant Protection Act, we are permitted to offer this unique home resale to our residents. As our interest is only in Pine Meadows resales, financial resources are targeted on sales in Pine Meadows within the active adult lifestyle market. On average, there are about 10 home sales annually, with the majority sold through the on-site sales office.