New Zealand 

The residents of eight units in the Crossdale Courts retirement complex in Riccarton were told about two weeks ago they had to leave their homes because the owner had not honoured the $1.1 million mortgage over the units.

A date for the sale has yet to be set by the mortgage owner, Cashmere Capital Limited, which has told the residents it wants to sell the units empty.

The shocked residents thought they were secure after a buying a right to occupy the units for life.

Association executive director John Collyns said he was appalled at the plight of the residents.

Crossdale Courts was not a registered retirement village, nor a member of the RVA, he said.

The 2003 Retirement Villages Act, which came into force in September last year, required all villages to register with the Companies Office and have a statutory supervisor, unless granted an exemption.

Residents in registered retirement villages had security of tenure by way of a memorial registered on the title, which the mortgagee had to honour, he said.

The statutory supervisor was responsible for overseeing the operator's financial status to safeguard the residents' interests.

"Failure to register may well be a breach of the law and it's essential that an investigation by the Ministry of Economic Development (the registrar of retirement villages) is undertaken," Collyns said.

A spokeswoman for the ministry said a response would be available today.

Minister of Senior Citizens Ruth Dyson said she was exploring every legal option to help the residents, and had asked her officials to report to her urgently.

If the Retirement Villages Act was unable to help these sorts of residents it would have to be looked at again, she said.

Meanwhile, the residents face an anxious wait to see if the owner can find the finance to stop a mortgagee sale.

Former printer Tom Rainey, 79, said he had not slept well since being told to vacate and was down to "rock bottom" with no money for another unit.

"It's the most traumatic period of our lives. I had a marriage upset and we split everything and this was all I could afford.

" I've spent about $5000 on a heat pump and insulation," he said.

He has been in his unit for nine years after paying nearly $50,000. His lawyer had told him his money was at risk but the owner's financial situation seemed healthy at the time.

"I like it here. It's close to the shops and I go down to the bowling club for a few beers. It suits me."

June Parsons, 82, said she greeted with horror the news she would be forced to leave the unit she paid $55,000 for a year ago.

"One of the other residents did not want to tell me because they thought I would have a heart attack," Parsons said.

"It's been awful. I just envisaged staying here for as long as I needed to. I don't think about moving out. I can't see myself moving out.

"We are just living in hope he (the owner) will get the money, knowing there's not much chance."

She had spent about $10,000 doing up her unit.

More Information on World Elder Rights Issues