Lifestyle <sup>PLUS</sup>

Lifestyle PLUS

Our Lifestyle PLUS land lease home loan means you can now purchase a land lease home in an accredited land lease community.

Your loan amount is dependent on a number of factors including; your age, income and expenses (ability to service the loan), the value of your land lease home and other assets (like superannuation, shares and investment property), along with any debts (like car loans, credit cards or investment property loans).

If you meet our loan approval criteria, a Lifestyle PLUS land lease home loan may be provided as a principal and interest loan over 5 or 10 years, with or without a balloon payment of up to one third of the loan, payable at the end of the term.

A Lifestyle PLUS land lease home loan may enable you to borrow up to 40% of the home’s purchase price up to a maximum of $150,000.

Trevor and Judy are 55 and working part time.

Wanting to work another 10 years, when they can access superannuation and age pension, they have chosen a home in a land lease community valued at $550,000 and want a loan for $100,000.

Trevor and Judy can afford to pay $75,000 of principal over the term of the loan and interest on the full amount. As such they have elected to make a lump sum payment (a balloon) of the remaining $25,000 of principal at the end of the 10 year loan term, when they can access their superannuation of $200,000. With their Lifestyle PLUS land lease home loan, Trevor and Judy can move into a land lease community a lot sooner, and start enjoying their new lease on life.

Please note this is an example only and we refer you to the Important Notice found at the bottom of this page.

Susie is 55 years old and working full time.

Susie is seeking to live in a land lease community and enjoy all the benefits of community living but particularly the social and security aspects.

Susie earns $55,000 per annum and is seeking a loan of $40,000 to help her purchase a two bedroom home for $350,000.

She plans on retiring at 65 - in considering her needs and objectives, financial situation and ability to service the loan as part of our credit assessment, a 10 year land lease home loan is approved for $40,000 and Susie can move in by the end of the month.

Please note this is an example only and we refer you to the Important Notice found at the bottom of this page.
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Please feel free to use our repayment calculator as a guide to what your repayments could be on a Lifestyle PLUS land lease home loan.

Repayment Calculator

FAQ's

Lifestyle PLUS land lease home loan

Land Lease Home Loans is the only financier currently in the market that allows you to borrow against your home equity in a land lease community. We have two loan types and we will discuss with you the most suitable option.

  • A Lifestyle CAPITAL land lease home loan is a reverse mortgage available to those over 65 years, allowing you to borrow using the equity in your home but not making any repayments until you sell or leave your home or, in most cases, if you move into residential aged care (further details under What is a Lifestyle CAPITAL land lease home loan).

A Lifestyle PLUS land lease home loan is similar to a traditional Principal and Interest loan to assist you to purchase a land lease home, borrowing up to 40% of the home’s purchase price up to a maximum of $150,000. The loan is called a Chattel loan and instead of a mortgage over your property you provide property security which is logged on the Personal Property Security Register (known as PPSR). We also take a charge over the Residential Site Agreement you have with the community operator, and we have a separate agreement with the operator that restricts any transfer of the Residential Site Agreement whilst a loan is outstanding.

A Lifestyle PLUS land lease home loan allows you to purchase a land lease home by borrowing a percentage of the purchase price and repaying the principal and interest over the term of the loan. The amount you can borrow is a function of your age, income & expenses (ability to service the loan), the value of your land lease home, any other assets (like superannuation, shares and investment property) and any other debts (like a car loan, credit cards or an investment property loan).

We encourage you to understand how it may affect your personal circumstances – by talking to friends, speaking to professionals, and using available resources such as www.moneysmart.gov.au. Before you enter into a Lifestyle PLUS land lease home loan we will ask that you obtain independent advice from a financial adviser or legal professional, and that you check with the Services Australia Financial Information Service how it will affect any pension or government benefits you are receiving or entitled to receive in the future. Learn more here.

A balloon payment is an agreed upon lump sum that you will pay to your lender at the end of the loan term. You will be required to pay interest on the balloon amount, however you are not required to pay principal on the balloon amount each month. You can choose to make higher than the minimum repayments which will go towards reducing your balloon payment at the end of the term.

Usually a balloon payment is set if you will have access to funds at the end of the loan term such as access to your superannuation, investments or the sale of other assets to enable you to manage your cashflow.

Advice

We encourage you to get financial advice. This will help you determine how best to deploy your home equity to ensure improved long-term retirement funding. A financial adviser can also help structure your financial affairs to maximise entitlements to the Age Pension.

As the advice needs to be independent we can only suggest you speak to a local solicitor or adviser. For further assistance, read more here.

The Age Pension is an important source of income for many retired Australians. We always recommend you speak to Centrelink and get financial advice to ensure you understand any impact on your entitlements.

Interest rates

The Variable Interest Rate on a Lifestyle PLUS land lease home loan depends on the term of your loan. We do not provide fixed interest rates. Refer to Interest Rates for further information.

Yes, under a Lifestyle PLUS land lease home loan we may offer an interest-only loan for a maximum period of 5 years. You pay nothing off the principal amount (the amount borrowed) so it doesn’t reduce.

Your interest rate can rise or fall throughout the term of the loan.

The variable interest rate Land Lease Home Loans offer could be affected by a number of factors, including but not limited to, higher or lower funding costs for the Lender.

Acting reasonably, we can change the pricing of your loan (including your interest rate and credit fees and charges).

Regarding the notice period, we will give not less than 20 days notice of a change to any fees and charges payable and not later than the day on which any change to the interest rate takes effect.

For further details please refer to Terms & Conditions.

The Establishment Fee is $750, and Account Keeping Fee (payable monthly in arrears on each repayment date) is $10 per month. Other fees/charges:

  • Special attendance fee (e.g. variation or substitution of security, discharge of mortgage) is $250
  • Fee for provision of paper copies of documents is $25
  • Drawdown fee is Nil
  • Early repayment fee is Nil.

Security

The loan is called a Chattel loan and instead of a mortgage over your property you provide property security which is logged on the Personal Property Security Register (known as PPSR). We also take a charge over the Residential Site Agreement you have with the community operator and we have a separate agreement with the operator that restricts any transfer of the Residential Site Agreement whilst a loan is outstanding.

Yes, home insurance is required to be in place prior to contracts being exchanged and settlement.

The Personal Property Securities Register (PPSR) is the single, national online database of security interests in personal property in Australia.

Yes, buyers need to check the PPSR if they are looking to buy an existing land lease home. A PPSR search will show if the land lease home they want to buy is debt-free and safe from repossession. Land Lease Homes Loans will register a borrower's home as their security on the PPSR in the same way a car is registered as security for a car loan. Homes in land lease communities are on leasehold land titles and a mortgage cannot be taken over this type of title in the same way as a traditional home. To check if the home you are looking to buy is registered as security on the PPSR you will need to do an individual search and enter the existing homeowner's full name and date of birth at a cost of $2.

Land lease communities

For information on land lease communities refer to www.landleaseliving.com.

Yes, in a land lease community, you own the home but lease the land where the home sits from the community operator. You pay rent for the right to occupy the site with a manufactured home or a moveable dwelling.

Please do not hesitate to contact us on 1300 555 626 or info@LLHL.com.au.

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© Copyright Land Lease Home Loans 2021

IMPORTANT NOTICE: This information has been prepared without taking account of the needs, objectives, or financial situation of any particular individual. Applicants should consider their own circumstances and, if necessary, seek professional advice. Applications are subject to loan approval criteria. Terms, conditions, fees and charges apply.

Land Lease Home Loans Pty Ltd ACN 642 684 053 is a Credit Representative 527929 of Mortgage Direct Pty Ltd ACN 075 721 434 Australian Credit Licence 391876.