Lifestyle Communities’ Upfront Fee with no Exit Fee plan

Lifestyle Communities expects to introduce a brand new mannequin that can present option to prospects to both unlock money now (pay later), or purchase with no exit payment (pay upfront).

Lifestyle Communities is making ready to present incoming residents extra selection over how and after they pay village charges, because it reshapes its contract mannequin following a bruising yr of authorized and media scrutiny.

Chief Executive Henry Ruiz instructed shareholders on the ASX-listed operator’s annual common assembly that from Q3 FY26, residents will be capable of select between two contract choices, together with a brand new No Exit Fee mannequin.

“LIC expects to introduce a new model that will provide choice to customers to either free up cash now (pay later), or buy with no exit fee (pay upfront),” he mentioned.

Under the proposal, patrons will be capable of resolve after they pay their administration payment – both 10% upfront, or as much as 20% after they promote.

The overhaul follows a July resolution by the Victorian Civil and Administrative Tribunal (VCAT), which discovered that Lifestyle Communities’ long-standing contract – used for 22 years – was unlawful as a result of the Deferred Management Fee (DMF) was calculated on the exit worth of the house. At the time the contract was entered into, that exit worth was unknown and due to this fact void.

Lifestyle Communities, which is interesting the ruling, has since modified its DMF so it’s calculated on the acquisition worth as a substitute of the sale worth, permitting householders to retain 100% of any capital progress.

Claims made to VCAT – first aired in an ABC 7.30 investigation and disputed by Lifestyle Communities – have considerably dented investor confidence. Before the ABC report, the operator’s market capitalisation was $1.53 billion. By final Friday, it had fallen to $640 million.

The firm additionally used the AGM to replace shareholders on FY26 buying and selling:

• As at 31 October 2025, Lifestyle Communities had 202 unsold accomplished houses, down from 257 at 30 June 2025 – a 21% discount. There are 10 unsold houses underneath building, in contrast with 12 at 30 June 2025.
• Net debt as at 31 October 2025 was $338.3 million, down from $460.5 million at 30 June 2025, pushed largely by the receipt of $100 million in land sale proceeds.
• As of 19 November 2025, Lifestyle Communities had made 93 new internet gross sales.

“We have 240 contracts on hand. Of the 240 contracts on hand, 150 relate to homes that are expected to be available for settlement in FY26,” the corporate mentioned.

Updated

November 24, 2025 3:08 pm | an hour in the past