Some homes on the North Shore and around Vancouver are sold as leaseholds: you buy the right to live in the home for a set number of years, not the land itself. They often cost noticeably less than similar freehold homes nearby, and for good reasons. Here’s what you’re buying with a leasehold, the different kinds, and what to check before you write an offer.
Freehold and leasehold
With a freehold, you own the land and the home on it, with no end date. With a leasehold, someone else owns the land, and you buy the remaining years of a long-term lease, often a sublease from a developer who holds the main lease. When the lease ends, the right to the property generally returns to the landowner, unless the lease says otherwise or is extended. Whatever the original term, you’re only buying the years that are left.
Prepaid and non-prepaid leases
- Prepaid. The rent for the whole term was paid up front, usually when the home was first sold. You pay no ongoing lease rent, though you still pay property tax, strata or association fees and maintenance. Many newer leasehold condos and townhomes are prepaid.
- Non-prepaid. You pay rent to the landowner, monthly or yearly, on top of your other costs, and the lease may allow it to rise at set times. Read exactly how and when it can change.
Leaseholds on First Nations land
Many leasehold homes on the North Shore are on First Nations reserve land. For example, the homes in the Raven Woods area of North Vancouver’s Roche Point neighbourhood are on Tsleil-Waututh Nation land and are sold as prepaid leaseholds. The Squamish Nation also holds reserve lands on the North Shore, and in Vancouver, the Musqueam Nation has leasehold housing.
Buying on reserve land is different in important ways:
- A different land registry. Leases on reserve land aren’t registered at the BC Land Title Office. They’re registered in a federal First Nations land registry or the Nation’s own registry, and transfers may need the Nation’s or the head landlord’s approval. BCREA notes these approvals and registrations can be lengthy and unpredictable.
- The Nation’s taxes. Some Nations levy their own property tax and property transfer tax under their own laws. The Tsleil-Waututh Nation, for example, has a Property Transfer Tax Law (2025), with its own exemptions, filed with the Nation’s lands registry.
- Different remedies. BCFSA cautions that the usual remedies for contract disputes may not be available, because provincial courts or tribunals may not have jurisdiction.
What’s different for any leasehold buyer
- No 3-day rescission period. BC’s home buyer rescission period doesn’t apply to leasehold interests. See The 3-day home buyer rescission period.
- Financing. Fewer lenders finance leaseholds, and they look closely at how many years are left. As the remaining term shortens, financing gets harder, and so does selling.
- Value over time. A leasehold’s value tends to fall as the lease runs down, while a freehold’s land value doesn’t expire. That’s a large part of why leaseholds sell for less.
- Presales on leased land. If a new development on leased land isn’t covered by the Real Estate Development Marketing Act, you may not get a disclosure statement or its 7-day right to cancel. See Buying a presale in BC.
Before you write an offer
- Get the lease (and the head lease) and read it with a lawyer experienced in leaseholds: the remaining term, any rent and how it can change, what happens at the end, approval and assignment requirements, and fees to assign.
- Confirm with your lender, before subject removal, that they’ll finance this specific property and term.
- Confirm which taxes apply on purchase and every year, and who levies them.
- Compare the price with freehold homes nearby, and think about how many years will be left when you’ll want to sell.
Questions people ask
Is a leasehold a bad investment?
Not necessarily. It can be a way into a newer home in a good location for less money, especially with a long term remaining. But you’re buying a right that ends, so price, term and your plans need to line up. This isn’t investment advice; get legal and financial advice for your situation.
What happens when the lease ends?
It depends on the lease. Generally the right to the property returns to the landowner. Some leases have provisions for extension or renewal; many don’t.
Do I pay property tax on a leasehold?
Yes, generally: to the municipality or, on reserve land where the Nation has its own tax law, to the First Nation.
General information for buyers in British Columbia, current as of publication. Every lease is different. Get independent legal advice before you buy a leasehold, as BCFSA recommends.