Leasehold vs Freehold: Understanding Property Ownership in Vancouver

Leasehold homes in Vancouver can look like a great deal, but they come with important differences from freehold ownership. Here’s what to understand about how leaseholds work and what to watch for.

---

Understanding Leasehold Properties in Vancouver

If you’ve been browsing Vancouver listings, you may have noticed some homes described as “leasehold.” These properties often appear more affordable than similar freehold homes — but they come with a few important differences worth understanding before you decide if they’re right for you.

---

What “Leasehold” Means

A leasehold property means you own the home, but not the land it sits on. The land is leased from another party — often the City of Vancouver, UBC, or a First Nation — for a set number of years, usually 50 to 99.During the lease term, you can live in the property, rent it out, or sell it. When the lease expires, ownership of the land and building returns to the landholder unless renewal terms are negotiated.

---

Why Leasehold Properties Exist

Leasehold arrangements are common where land is publicly or institutionally owned. Examples include UBC and SFU communities, certain City of Vancouver developments like False Creek South, and properties on Musqueam or Tsleil-Waututh land.

---

What Many Buyers Don’t Realize at First

Many buyers first notice leasehold homes because of the lower entry price, which often looks like an incredible deal compared to similar freehold condos. What buyers don’t realize is that the lower price is tied to the ownership structure. Leasehold means you own the home but not the land, and the value, financing, and resale all depend heavily on how many years remain on the lease. Some lenders won’t finance certain leasehold properties at all, and others require larger down payments or shorter amortization. Understanding this upfront helps buyers compare options confidently and avoid surprises later on.