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Defiant elderly rest home residents are not moving despite an eviction order after the owner of their Christchurch retirement village failed to meet mortgage repayments.
The eight residents, most in their 70s and 80s, of Crossdale Courts in Curletts Road, Riccarton, thought they were secure for the rest of their lives but now face an uncertain future as a legal fight begins, The Press newspaper reported today.
A letter from the mortgage company telling them the bad news was personally delivered two weeks ago, with residents being told they must leave within three weeks.
The residents had paid between $40,000 and $60,000 for the right to occupy the units for as long as they remain independent. Under the contracts, the payments were a loan to the owner which the owner had to repay minus five per cent when they left.
They also pay a monthly service fee between $140 and $180.
Now the residents face losing their initial outlay as well as their occupancy rights.
"But we are not moving. Nobody crosses the door," resident Pat Brown, who has had his unit for five years said.
He said the situation was a "sad scenario which came out of the blue".
"I thought I had a roof over my head for the rest of my life.
"This is a pretty good little community, but some are not in the best of health and this is worrying the bloody tripe out of them," he said.
The units were owned by Crossdale Properties Limited, a company belonging to former police detective sergeant Gary Campbell, who bought the units, a former motel, while still in the police force.
Crossdale mortgaged the eight units in 2006 to Cashmere Capital Limited, which advanced $1.1 million over the property. The titles to the units are also subject to a further four or five other mortgages or encumbrances.
Crossdale owns another 15 units in the complex but they are not subject to the Cashmere Capital mortgage.
The company failed to make repayments in September last year, despite efforts by Mr Campbell to refinance.
The lawyer for Cashmere Capital, Ernie Tait, said his clients had given Mr Campbell at least two months to meet his mortgage obligations and had been led to believe the residents were tenants paying a weekly rent.
"Cashmere Capital is just acting under its rights as mortgagee. Unfortunately, the residents have been caught in the middle because of an agreement they had with Mr Campbell which is not noted on the title."
The units would be auctioned, he said.
- NZPA
