Buying Leasehold Land in BC: What Buyers Need to Know
Tanya Toye • November 20, 2025
If you’ve been exploring real estate options, you may have come across properties built on leasehold land. While freehold ownership is the most familiar form of property ownership, leasehold can offer unique opportunities for some buyers.
Here’s a breakdown of what leasehold really means, along with its pros and cons to help you decide whether it’s the right fit for you.
What is leasehold land?
Leasehold land is property where you own the home or unit, but not the land beneath it. Instead, you lease the land from a landlord – often the government, a university (such as UBC), a First Nations band or a private landowner. These leases typically range from 30 to 99 years. When you buy a leasehold property, you’re essentially purchasing the right to occupy the land for the remainder of the lease term.
Pros of buying leasehold
- Lower purchase price. Leasehold homes usually come with a lower price tag compared to similar freehold options. This can make desirable neighbourhoods more accessible.
- Potentially larger or newer properties. Some leasehold developments offer spacious layouts, modern amenities or prime locations that may otherwise be out of reach in the freehold market.
- Predictable lease terms. Long-term leases provide clarity on costs and expectations, including scheduled lease payments or renewals.
Cons of buying leasehold
- Financing challenges. Not all lenders finance leasehold properties, and those that do may impose restrictions based on the remaining lease term. Shorter leases can mean higher risk and fewer mortgage options.
- Uncertain future value. As the lease term shortens, property values may decrease. This can impact resale value and marketability.
- Lease payments and fees. Some leasehold properties come with annual lease payments in addition to strata fees. These ongoing costs need to be factored into your budget.
- Renewal uncertainty. When a lease nears expiry, renewal terms – if they’re even offered – can be unpredictable. Buyers should fully understand the renewal process before committing.
Is leasehold right for you?
Leasehold properties can offer great value, but they come with considerations that are different from traditional ownership. Before making a decision, it’s important to review the lease agreement carefully, understand financing limitations and consider your long-term plans.
If you’re exploring leasehold options in BC and want clarity on your mortgage choices, I’m here to help you navigate the details with confidence. 604-788-8693 |
tanya@tanyatoye.ca
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