Frimley Village

Licence to Occupy Villages

What this could mean in reality

Frimley Village

Licence to Occupy Villages

Title

Freehold Title

No title – you have a legal right to occupy the house on the land which is owned by the village

Villa is purchased for $450,000

Villa is sold 10 years later

for $500,000

How much do you get when your villa is sold when you leave?

You receive all of the sale proceeds of the villa – the only deductions are for legal fees and a fee payable to the developer for assisting with your sale.

You only receive what you paid for your villa – LESS a Deferred Management Fee of 20%-30% of the purchase price (depending on how many years you have been in the village – typically written off at 5% per annum).

You receive $500,000 less legal and sales fees which we have estimated at $16,000.

TOTAL RECEIVED:  $484,000

You receive $450,000 less the DMF of 25% (mid-range) of $112,500. TOTAL RECEIVED:

 $337,500

(or could be as little as $315,000 if the village has a 30% DMF)

Capital gain

No – the village keeps it

Yes – you keep it

Weekly fee

$79

$119

Rates and water

Included in above

FINANCIALLY BETTER OFF BY $146,500