Mortgage Financing

    Like other major building construction, much of the financing comes from loans, secured through a mortgage. As noted, under Construction Financing, this is no different for Life Lease facilities. If you are in, or considering moving into a Life Lease facility, you should enquire about the mortgage(s) on the property, renewal dates and terms. These will affect the rent you pay and the future increases/decreases in that rent.

    If major and unexpected expenditures occur, and if the Reserve Fund is insufficient to cover such expenses, then the owners may choose to refinance the mortgage, or take out another mortgage in order to raise the needed funds. This may also have an effect on your rent.