How does the Wait list work?

To help keep the complex 100% occupied, a wait list is in effect. Just go to the “Waitlist” tab on this website fill out the form, click on “Submit” and follow the instructions that are emailed to you. You will receive a series of about 8 emails about life lease, and you will also receive a notification of all vacancies and open houses. The open house time/date will be emailed to registered subscribers. All lease agreements are subject to acceptance by the board of directors.

Note that a Life lease resident has priority when leasing a suite. If you are hoping for a very desirable suite location it may be to your advantage to accept a less desirable one for now, as this will greatly increase your chance of eventually getting the preferred suite.

What is Life Lease? How does it work?

To help build and operate a life lease such on a non-profit basis, residents were asked to invest in the project through the Life Lease financing mechanism. The primary goal was, and still is, to build and operate the project in the most efficient manner possible.

Life Lease Entrance Fees, which are 100% refundable when moving out, have been used by Cornerstone to help build the project. Monthly rent is used to pay for the operational expense.

The Life Lease concept has been used successfully on many similar projects throughout the province, including Cornerstone Phase 1 & 2. Life Lease has a proven record of success. The Manitoba Government has implemented the Life Leases Act and Regulations which will apply to all new Life Lease projects.

Where does the Entrance Fee go?

Entrance Fees paid by life lease residents goes into the Refund Fund which is held by Concentra Trust/financial a trustee for the project. The sole purpose of this fund is to facilitate a timely refund of a resident’s Entrance Fee, when the resident moves out.

What Protection does the Life Lease Legislation Offer?

Effective December 1, 1999, the Manitoba Government implemented the Life Leases Act and Regulations, The primary purpose of the Act is to ensure that tenants are given certain information to enable them to make informed decisions and to protect tenant’s funds. The government’s Residential Tenancies Branch has information fact sheets available on the legislation.

Will my Rent Increase?

These complexes are operated on a non-profit basis. The primary goal is to operate the project in the most efficient and effective manner possible. Monthly charges will only reflect the actual costs of operating the project. This means that rent increases should be minimal.

What steps do I take?

The designation of either “Non-Profit” or “For-Profit” applies only to the sponsor, or owner of the land being developed. Church and cultural group sponsors are often involved in the non-profit multi-residential development of property they own. They do so for the benefit of their own, and the surrounding, community. These non-profit life lease projects are very common in Manitoba and throughout the country. Although the architect, builder, trades people, marketing, etc., work for a profit, the landlord or owner does not make a profit.

A “for-profit” landlord/owner will develop a multi-residential project with the intent of eventually earning a return on their investment. The architect, builder, trades people, marketing, etc, also work for a profit, just as they would with a non-profit. Overall costs may be quite similar to that experienced by the non-profit sponsor. The “for-profit” owners primary advantages are experience, and the availability of funds, to complete a project. The “for-profit” owner is able to proceed to the construction phase more quickly than the non-profit sponsor.

The Life Leases Act applies to both for-profit and non-profit life lease projects in Manitoba.

Life Lease – Non-Profit vs For-Profit Developments

The designation of either “Non-Profit” or “For-Profit” applies only to the sponsor, or owner of the land being developed. Church and cultural group sponsors are often involved in the non-profit multi-residential development of property they own. They do so for the benefit of their own, and the surrounding, community. These non-profit life lease projects are very common in Manitoba and throughout the country. Although the architect, builder, trades people, marketing, etc., work for a profit, the landlord or owner does not make a profit.

A “for-profit” landlord/owner will develop a multi-residential project with the intent of eventually earning a return on their investment. The architect, builder, trades people, marketing, etc, also work for a profit, just as they would with a non-profit. Overall costs may be quite similar to that experienced by the non-profit sponsor. The “for-profit” owners primary advantages are experience, and the availability of funds, to complete a project. The “for-profit” owner is able to proceed to the construction phase more quickly than the non-profit sponsor.

The Life Leases Act applies to both for-profit and non-profit life lease projects in Manitoba.

Life Lease – Does my Entrance Fee go up in Value?

Many life leases in Manitoba are sponsored by a non-profit organization. These non-profits usually set up their life lease complexes so that future residents also benefit from the “non-profit” aspect. This means that the entrance fee paid, is the entrance fee that is eventually refunded, and is the same amount when a new resident moves in. There is no increase or decrease in the value of the Entrance Fee.

The entrance fee remains unchanged for second, third, or subsequent occupants of the suite. The “non-profit” aspect cascades from one occupant of the unit to the next! The “non-profit” benefit is enjoyed by all residents, for many decades.

Occasionally there are non-profit life leases that allow the residents to assign (or sell) their lease for market value. The first occupants benefit from the “non-profit” sponsors efforts, and they benefit a second time when they assign (sell) their life lease and move out. The second, third, and subsequent occupants pay market value for the leased unit. This means they may experience an increase, or decrease, in value for their suite. These complexes are not operated and re-leased this way.

Who may move into a Life Lease?

There are no membership requirements to become a resident of Phase 2. Cornerstone is open to anyone that meets the criteria regarding age (55+), pays the Entrance Fee and rent, and abides by the rules and regulations as set up by the board and the tenants association. All lease agreements are subject to board approval.

Condominium or Life Lease – which is better?

First, it should be noted that both the terms “Condominium” and “Life Lease” describe the financial vehicle whereby a resident occupies a living space such as a bungalow, two story, apartment style, town home, etc. etc.

Neither the “Condominium” or “Life Lease” financial structures are superior to the other. Both have advantages and disadvantages, depending on your life’s circumstances.

Both are similar in that they allow for relatively carefree occupancy, and allow you to simply “lock the door” and go away for awhile, and not worry about your premises.

They’re different in that ownership of a condominium means you own your suite and a share of the common area used by everyone. As a condo owner you will have voting rights in the corporation, and you may choose to be elected to the board. You actually own real estate which can rise or fall in value depending on current markets.

The “owner” or occupant of a life lease does not own their living space or the common areas. A couple of tenant representatives may attend, and be an influence at board meetings, but the board has final decision making authority. In fact the tenants of a life lease may not be members of the board. A life lease residents exposure to the volatile real estate market is minimized, although not completely eliminated.

A refund fund facilitates a full refund of the resident’s entrance fee. There is no need to sell the premises when you wish to move. Beneficiaries of your estate usually find the life lease model very easy to deal with. With 90 days notice, they simply assign the unit to the board (owner) and 100% of the entrance fee is refunded.

A typical life lease resident is 55+, prefers to live with people that share a similar interest, enjoys having many amenities in the building, and no longer cares for the real estate equity risk that home ownership would entail.