Shareblock Retirement Village
Silvermine Village is owned by a trust and leased to a share block holding company which manages the facility on a 99-year lease, with an option to renew.
In terms of the Share Block Act, shares are purchased which give residents the right to occupy a cottage and have access to a single-vehicle garage. A spouse is usually the nominated occupant. For this right the resident makes an interest-free loan to the Trust, which is refunded when the cottage is vacated. The loan value is the price paid to acquire the cottage.
No surplus goes to the resident but is retained and used to offset operating costs incurred in running the complex. On the death of the surviving spouse / partner the loan value is repaid, and the cottage reverts to the Trust for resale.
In effect, this means that residents ‘own’ the village and they annually elect from among themselves an internal board of directors, and trustees, to serve their interests. No external developer is involved, and no profits accrue to outsiders. This sets the village apart from most other retirement village schemes.