Life Lease is a form of real estate tenure that has been popular throughout North America and Europe for many years. There are now over 125 Life Lease projects operating in Ontario and it is recognized by the Ministry of Municipal Affairs and Housing. Buyers pay to purchase upfront. Property taxes and operating costs (the “Occupancy Charge”) are paid monthly.

It varies by project. Use restrictions are stipulated in the lease. At Mansfield Ski Club Village, owners must be Members in good standing and we ask that the Life Lease unit not be their primary residence.

Life Lease sponsors include churches, cultural organizations, nursing and retirement home operators, hospitals, private developers and municipalities. Sponsors develop the project and provide the necessary equity and financing. The financing for construction and subsequent operation ultimately comes from the people who purchase Life Lease interests in the development.

No. However, Mansfield Ski Club Village has incorporated many provisions outlined under the Act into the standard Life Lease. The Ontario Ministry of Municipal Affairs and Housing has been monitoring the Life Lease housing industry and reported at the Ontario Bar Association in May 2003, that the industry is deemed to be self-regulating. A sound Life Lease Occupancy Agreement should incorporate adequate consumer protection in the absence of provincial legislation. The Life Lease being used at Mansfield Ski Club Village is similar to those in use at other projects in Ontario.

Yes, we don’t prohibit it, but we don’t recommend it.  We suggest you use a Home Equity Line of Credit on your principal residence or another source of financing because it will be less expensive. Mortgages on Life Lease properties are harder to obtain.

If you use a real estate agent or lawyer to help sell, you will need to pay their fee.  You will also need to pay any legal costs incurred by Mansfield Ski Club Inc for the transfer of the lease interest to the purchaser. Mansfield Property Management will maintain a list of interested buyers and as a member of Mansfield Ski Club, you will be entitled to advertise privately to other members.

Each purchaser pays a monthly occupancy fee based on the size of their Unit. The fee is intended to allow Mansfield Property Management Ltd to recover the costs of operating the common areas and it includes HST.  Residents will receive annual financial statements which break down operating costs and revenues for the common areas and separate accounts will be maintained for ski v non-ski costs.  The board of directors for Mansfield Property Management Ltd includes a minimum of two village residents.

Mansfield Property Management Ltd will maintain the common areas, building exteriors including windows, infrastructure and facilities and costs are recharged to residents through the Occupancy Charge. Residents must maintain the interior of their Units. Ski-related buildings and infrastructure are paid by Mansfield Ski Club member dues.

Unit owners. This includes kitchen and bathroom exhaust units.

Drinking water for the Village comes from wells located on Mansfield Ski Club property.  It is treated in a filtration system and hot water is generated in a central boiler plant. A flow test was completed on these wells to ensure there would be no impact on surrounding wells or ponds.  Wastewater (both sewage and “grey water”) will be discharged into Mansfield Ski Club’s existing treatment plant for the first phase of the village. The existing system provides “primary” treatment and effluent is discharged into the ground which drains to the Pine River through the local watershed, as is the case with most septic systems in the area.  For future phases, a new “tertiary” treatment system will be built including a final UV treatment stage and effluent will discharge into the Pine River.  The well and septic systems are both subject to licencing and approval by the Ministry of the Environment.

Owners would become creditors in the insolvency process and they can participate on the board of directors so they have input into what happens.

Yes, check the Rules and Regulations though. You must advise Mansfield Property Management in writing in advance and get written approval.

Life Lease tenure is better for creating a community of people with shared interests.  The sponsor, in this case, Mansfield Ski Club Inc., retains ownership of the land.  Mansfield Property Management Ltd can provide programming based on direction from residents and members while residents retain exclusive use of their Units and the opportunity to build value and sell at market. The Life Lease interest provides a resident with shared use of all common areas and building amenities while residents share in the ongoing operating costs through payment of a Monthly Occupancy Fee, similar to a condo fee.

The Mansfield Ski Club Life Lease model has no termination date so it extends in perpetuity. An owner may sell any time at any price in which case the Life Lease interest is transferred to the purchaser.  Upon the death of one spouse or co-owner, the Life Lease interest automatically transfers to the surviving spouse or co-owner at no cost. Upon death of the second spouse or partner, the Life Lease interest automatically transfers to his or her estate. The resident’s Will may then prescribe the devolution of the suite. The beneficiary may retain the suite as an investment.

Mansfield Ski Club Inc.

Yes.  Life Lease suites acquired for investment or as seasonal residences are subject to LTT and capital gains tax.  Ontario Regulation 88/04, filed April 2 2004, stipulates that purchasers of Life Lease interests are exempt from the payment of land transfer tax , provided that the Life Lease corporation is a non-profit corporation or a registered charity, and the purchaser is acquiring the Life Lease interest for the purpose of his or her occupancy of the suite as his or her principal residence or the principal residence of his or her spouse, parent or co-owner.

Yes but check the Rules and Regulations that form part of the Life Lease.

Pets of certain types and sizes are permitted. The Rules and Regulations contain further restrictions.

The Occupancy Charge is set at the break-even cost of operating Mansfield Ski Club Village and common areas, excluding ski-related activities. The charge will vary with costs, whether up or down.

Unit owners maintain the interior finishes at their own cost.

Each Unit is equipped with a high-efficiency heat pump for heating and cooling which is maintained by Mansfield Property Management on a cost-recovery basis. Fresh air provided to each unit through similarly maintained unit and the Village includes a central heating and cooling plant.

Skiing relies on a healthy, cool environment and the Village has been designed to minimize impact on the environment.  Club membership will not rise because of the development. Instead, the proportion of members who stay overnight on weekends will increase and vehicle trips to and from Toronto will decrease, reducing the impact on the environment. An Environmental Impact Study was completed as part of the development plan.  Threatened species and important habitat will be protected and the trails and common areas have been designed to allow long term improvements to the forested, meadow and wetland areas on the property. The Rules and Regulations for the Village will include limitations on light and noise and the thematic focus of the Village is on sustainability and maintenance of the rural character. Lastly, the Village physical plant has been designed to facilitate a long term transition to renewable power which could ultimately service the entire club.

The lease would be transferred to the new owner. The terms of the lease would not be changed.  Sale of the property would require a vote of the membership.

Yes.