Retirement Village Unit

McLean Gladstone provides specialised property valuation services for retirement village units across South Australia, particularly those held under a Licence to Occupy or similar residence contracts. As an independent property valuer and certified property valuer, we understand the unique complexities of these arrangements, ensuring accurate and compliant valuation of property for residents, operators, and financial planning purposes.
 

Understanding the "Licence to Occupy" in Retirement Villages: In many South Australian retirement villages, residents do not own the unit they live in. Instead, they enter a residence contract, often referred to as a Licence to Occupy or a long-term lease (e.g., for more than 49 years).  This legal arrangement grants the resident the right to occupy a specific unit and use communal facilities, typically in exchange for an initial entry fee and ongoing service fees. The retirement village operator retains ownership of the unit and the underlying land. While not traditional ownership, these contracts are often registered on the title deeds of the retirement village.
 

Why a Valuation is Essential for Retirement Village Units: A professional property valuation for a retirement village unit is crucial for several reasons:

• Entry and Exit Entitlements: Valuations are vital for determining the initial entry contribution and, critically, for calculating the exit entitlement when a resident leaves the village. This often involves understanding how deferred management fees (exit fees) are applied and any entitlement to capital growth.

• Setting Selling Prices: When a unit becomes available for a new resident, a valuation helps in fixing the price at which the residence will initially be remarketed, ensuring fairness and managing expectations for all parties.

• Financial Planning: For residents and their families, an accurate home valuation or residential property valuation of the Licence to Occupy interest helps in personal financial planning and estate management.

• Dispute Resolution: In cases where there are disagreements over the value, an independent valuation provides an objective assessment to help resolve disputes.

• Compliance: Ensuring compliance with the Retirement Villages Act 2016 and related regulations, which govern the operation and financial aspects of retirement villages in South Australia.
   

Our Expert Valuation Approach: As a leading property valuer in Adelaide and across South Australia, McLean Gladstone's licensed property valuers are highly experienced in valuing these unique interests. We are the leading valuation experts in providing most of the valuations in the retirement sector for both individual and corporate providers. Our approach considers:

• Contractual Terms: A thorough review of the specific residence contract, including the Licence to Occupy agreement, to understand the rights and obligations of the resident and the operator, and how exit entitlements are calculated.

• Market Value of the Right to Occupy: While not valuing the freehold, we assess the market value of the right to occupy, often linked to the initial interest-free loan or entry payment, and how this value may appreciate or depreciate based on market conditions and contractual terms.

• Comparable Sales within the Village: Analysing recent sales or re-licensing prices of similar units within the same retirement village, as these provide the most direct evidence of market value for such interests.

• Village Amenities and Facilities: Considering the quality and range of communal facilities and services available, as these contribute to the desirability and perceived value of the Licence to Occupy.

• Compliance with Legislation: Ensuring our valuations adhere to the Retirement Villages Act 2016 and other relevant South Australian legislation. Land within a retirement village may even qualify for land tax exemptions if occupied as a principal place of residence under a residence contract.
   

Our local property valuer team provides detailed and defensible valuation reports that are accepted by all relevant parties, including residents, operators, and legal advisors. Whether you need a residential valuation for a specific unit or advice on the broader real estate valuation context of a retirement village, McLean Gladstone is your trusted real estate valuer.
 

Contact McLean Gladstone, your property valuer near you in Adelaide or broader South Australia, for expert advice and reliable valuation services for retirement village units.