There are many reasons why residents may need to move from their Villa, including changing health, family or financial circumstances.
To start the departure process, the resident is required to complete the Notice of Termination form provided by the Village Manager. The Notice of Termination must include the date the resident intends to vacate the Villa with a minimum of 30 days’ notice required to be provided by the resident to the Village Manager.
On the date of passing, the contract is automatically terminated. Oak Tree will be in contact with the family to complete the appropriate departure documentation.
When the resident vacates the Village, the direct debit payment for the Recurrent Charges will cease on the termination date (death or vacant possession provided to Oak Tree) of the Lease or Licence. The Recurrent Charge will then accrue for a maximum of 90 days and this accrued debt will be deducted from the Ingoing Contribution repayment payable to you when the Villa is resold.
After the termination date the Recurrent Charge will accrue as follows:
|100% of Weekly Fees||50% of Weekly Fees||No Weekly Fees|
|Day 1 to Day 42||Day 43 to Day 90||Day 91 onwards|
If the Villa is resold before the 90 days has passed, the Recurrent Charges will only accrue to the date that the New Resident pays the Ingoing Contribution on for the Villa.
The resident may appoint an external real estate agent (“selling agent”) or Oak Tree to resell the Villa on their behalf. If the resident engages a selling agent other than Oak Tree, the resident must provide Oak Tree with the following information:
Any commission and marketing costs charged by the external real estate agent is payable by the resident. Oak Tree will not interfere with the resale of the Villa if the resident engages an external real estate agent. The external real estate agent engaged by a resident must comply with all the Village Rules and the Resale of Villa by External Agent Rules. The Village Manager can provide you and the agent with a copy of these Rules as required.
If the resident engages Oak Tree to resell the Villa the resident will not be charged any commissions or marketing costs to resell the Villa. As the selling agent, Oak Tree will use the following tools to resell the Villa:
Oak Tree commits to keeping the resident (or their estate) up to date during the resale process. If Oak Tree is the selling agent, Oak Tree will provide a written monthly update of the resale progress including the following:
The Departure Fee or Exit Fee (sometimes referred to as a ‘Deferred Management Fee’) is calculated on the Ingoing Contribution the resident paid when they entered the Village and the time spent living in the Village (this is calculated on a daily basis). The Departure Fee is payable when the right to reside in the Villa is resold to a new resident and is then deducted from the repayment of the Ingoing Contribution payable to the resident by Oak Tree.
The calculation of the Departure Fee is contained in the Residence Contract.
Once the Villa is resold to a new resident, the repayment of the Ingoing Contribution is payable to the former resident within 14 days after the date on which Oak Tree receives the full payment of the Ingoing Contribution from the new resident.
The repayment of the Ingoing Contribution to the resident may include the following deductions:
Any capital gain in the Villa will be shared as follows:
Any capital loss in the Villa will be shared as follows:
When the resident vacates their Villa, it will need to be refurbished to a marketable condition.
The refurbishment costs are funded by Oak Tree and works may typically include:
The outgoing resident may be required to fund reinstatement of the Villa made necessary by additions or damage caused during residency. If such reinstatement work is required, it will be agreed in writing prior to the work proceeding.
If you have any further questions regarding Oak Tree Retirement Villages please contact the Village Manager who will be only too happy to assist.