Refund Policy

Throughout the world there is a myriad of Refund structures in place, each one tied to the financial strategy and cashflow needs of the organization. Within South Africa, organizations offering “retirement” facilities have Refund structures such as:

  • A fixed percentage of the Life Right purchase price (as in MHA’s case)
  • A fixed percentage of the eventual selling price of the Life Right
  • Inclusion of a measure of profit derived from selling the Life Right
  • A refund which reduces by 10% per year of occupation, with no refund payable after 10 years of occupation.


MHA’s Refund Policy has been amended over the years, to respond to MHA’s changing financial strategies, and to ensure the sustainability of our accommodation and frail care offerings. A refund
may depend on the length of the period of occupation of a cottage. The actual percentage would be written into the Life Right contract at inception, or altered only via a mutually agreed addendum to it. In general terms, however, 50% or more of the price paid by the Occupant at the time of taking occupation, plus that percentage of any alterations/additions capitalized by MHA, would be refunded on the following basis:

  • Any amount owing to MHA would first be deducted
  • The refund would be paid to the Occupant or the Co-Occupant or estate, as the case may be
  • Any refund amount owing by MHA would be retained until such time as a Life Right contract for the vacated cottage has been concluded with a replacement Occupant, and the new Life Right payment received in full from the new Occupant. Only at that stage would the refund owing be paid, and strictly in terms of the legal process in place, which is usually into an estate.