Henry Ruiz, the CEO of the Victorian land lease operator, has released a video statement on the company's website addressing the VCAT ruling, the appeal process and its approach to future homeowners. 

"Based on the current ruling, for new homeowners our approach to the Deferred Management Fee will now be based off the purchase price, instead of the sale price. This means going forward new homeowners will benefit from 100% of any capital growth," he said.

"Above all, we stand by our model. The Deferred Management Fee put simply means homeowners can enter one of our great communities at a lower price."

CHRIS BAYNES' TOP-RATING OPINION ARTICLE: The law is an ass - and it has cost Lifestyle Communities $1.5 billion and counting

VCAT President Justice Tim Woodward, whose orders were released by Lifestyle Communities on Monday, 7 July, has now issued orders to give effect to his reasons but simultaneously issued an interim stay on those orders, the operator told the ASX last Friday.

Lifestyle Communities now has until 5 September to lodge its appeal. A hearing has been set down for 27 August for Lifestyle Communities to seek an extension of the stay of President Wooward's orders. 

In the video, Henry explained the operator has used the DMF model for over 20 years to keep the entry price of its homes substantially lower.

The CEO said that President Woodward's ruling was surprising given the Victorian Government's Consumers Affairs agency recognises the validity of the DMF being calculated on sale price, adding its contracts had been reviewed by legal experts many times over the years.

Lifestyle Communities also made the commercial decision to cease charging fees for services provided to deceased estates and submitted that should be reflected in the orders by Justice Woodward.