I've been through all this recently too. From what I understand of what the AME told me, the above is correct, but you should get in touch with the CAA before three years are up, if you leave it that long. Five years is quite a long time to leave a class 1 dormant and I think they may make you go through the joys and £s of the intial again unless you have previously notified them of your ongoing circumstances & plans and come to an agreement based on them.