A life lease, a rarely used instrument these days for tenancy, typically involves an older individual or couple who acquire the right to occupy a unit, usually a condominium, until they die or decide to vacate. They pay the owner a ...
It's essentially paying rent in advance by way of a balloon payment in a negotiated amount calculated as a percentage of the market value of the property. They would also normally be responsible for paying a modest monthly fee towards the management and maintenance of the property.
... usually appeals to senior adults since
it allows older homeowners the opportunity to move from impractically
large family homes into smaller, more affordable and easily maintained housing using their
life-long accumulated home equity.
Such residents are granted a leasehold interest in the property by way of a negotiated contract and are not considered owners or tenants. In addition to the right to occupy their apartment, they can typically also use various common areas and facilities.