Lifestyle Communities denies allegations after ABC exposé over exit fees, targeting “Miss Lonely”

The ABC's 7:30 current affairs program revealed 80 residents of the company's Wollert Lifestyle Community in Melbourne's north have filed a claim with the Victorian Civil and Administrative Tribunal (VCAT) alleging Lifestyle's fees are excessive and in breach of the law.

The story took aim at Lifestyle's exit fee policy for residents of 4 per cent, which rises in increments to a cap of 20 per cent by the fifth year, meaning that someone who sells their house at $500,000 after five years receives $400,000.

The ABC also revealed allegations from residents of rent being charged to dead people and misleading marketing, while it was also revealed that at an investor conference the company described a key cohort of its buyer market as "Miss Lonely, Miss Homely and Miss Active" - a description the company said it regretted in a statement given to the broadcaster.

In its statement released to the ASX today, Lifestyle did not specifically deny certain allegations made within the ABC's story, but rather the claims made in the residents' VCAT applications which it says it will defend.

The company emphasises that deferred management fees are permissible in all states except for South Australia, claiming that in Victoria most land lease operators charge such a fee.

"Lifestyle Communities have been engaging with the group of homeowners since February 2024. The homeowners have not been satisfied with our responses and have made applications to the Victorian Civil and Administrative Tribunal (VCAT)," the company stated.

"Lifestyle Communities respects the rights of homeowners to pursue the VCAT pathway and believes this is the appropriate forum for resolution of the matter.

"Lifestyle Communities takes its compliance obligations extremely seriously and has obtained legal advice throughout its 21 years to ensure it operates in accordance with relevant legislation, and its policies are consistent with other industry operators."

The group said it took pride in the transparency provided throughout its sales process, including all fees being clearly articulated and explained on its website and in marketing materials, with draft agreements given to every homeowner at the fully refundable first deposit stage alongside detailed explanations of fees provided by the sales team.

It said agreement read-throughs were conducted with each homeowner prior to signing agreements, and fee acknowledgments were signed by all homeowners at each stage of the sales process and after signing their agreement.

Lifestyle also pointed to a cooling off period for all customers, as well as a Smart Buy Guarantee that enables them to leave the community within the first year with no exit fees payable.

"The group members that we met with acknowledged that they fully understood that the DMF was in their site agreements and was payable as a percentage of their resale price when they moved out," the company stated.

The story also reported one case of a deceased resident whose family wished to sell their home but their request was allegedly declined as it was "not in their best interest to sell the property", although the company claims it has "no incentive to delay the sale of a home" and the average time to sell was currently 63 days.