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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Buying a home is one of life’s biggest accomplishments. Finding someone you want to build a future with is another. If you’ve achieved both, congratulations! Owning real estate before entering a serious relationship can provide a strong financial foundation for your future together. However, while no one wants to think about the possibility of a relationship ending, it’s important to understand how your home could be affected if it does. In British Columbia, family property laws can become complex when couples separate. Depending on your circumstances, a home that one partner owned before the relationship may not remain entirely separate property. In some cases, any increase in the property’s value during the relationship or other financial contributions made by a partner could become part of a property division discussion. Factors such as whether you’re married or in a common-law relationship, how long you’ve lived together, whether you’ve combined finances and whether your partner has contributed to mortgage payments, renovations or maintenance can all influence the outcome. This isn’t meant to discourage anyone from building a life together. Rather, it’s a reminder that planning ahead is just as important in your personal life as it is in your financial life. Protecting yourself with a cohabitation or prenuptial agreement One option some couples consider is a cohabitation or prenuptial agreement. These legal agreements can clearly outline how assets, including real estate, would be treated if the relationship ended. Having these conversations early, while they may feel uncomfortable, can provide clarity and help avoid costly disputes down the road. From a mortgage perspective, it’s also worth thinking carefully before making changes to your home’s ownership or mortgage. Adding a partner to the title, refinancing together or using your home’s equity for joint expenses are significant financial decisions that can have long-term implications beyond your monthly mortgage payment. Before making any major changes, speak with both a family lawyer and your mortgage broker. Your lawyer can explain your legal rights and responsibilities under British Columbia law, while your mortgage broker can help you understand how changes to ownership, refinancing or borrowing against your home could affect your financial goals. Protecting the home you’ve worked so hard to purchase doesn’t mean you expect the worst. It simply means you’re making informed decisions about one of your largest investments. If you’re considering adding a partner to your mortgage, refinancing together or simply want to understand your options, I’d be happy to help you navigate the mortgage side of the conversation and connect you with the right professionals as needed. A little planning today can help provide greater peace of mind for whatever the future holds. 604-788-8693 | tanya@tanyatoye.ca
