With freehold you own the land and the building forever. With leasehold you own the building and the right to use the land for a fixed number of years, after which it reverts to the landowner.
Leaseholds sell for roughly 15% to 30% less than comparable freehold units. That discount is real money, and it is also the market pricing in real risk.
Leasehold vs Freehold: The Difference in One Table
| Freehold | Leasehold | |
| What you own | Land and building, indefinitely | The building and a right to use the land for a set term |
| Price vs comparable | Market | 15% to 30% below |
| Ongoing land cost | None | Ground rent, often $150 to $600 a month, on top of strata fees |
| Mortgage options | Every lender | A short list of credit unions and a few banks |
| Minimum down payment | 5% on qualifying purchases | Often 20% to 35% |
| Resale liquidity | Normal | Shrinks as the lease shortens |
| Property transfer tax | Yes | Yes, on the leasehold value |
| At the end | Nothing happens | Building reverts to the landowner unless the lease is renewed |
Why a Leasehold Condo Is 20 to 40% Cheaper
Three reasons, and it helps to separate them.
A shrinking asset. A freehold condo is a claim on land forever. A leasehold with 55 years left is a claim on 55 years of use. That is worth less, and it gets worth less every year.
Financing friction. Most lenders will not touch it. Fewer buyers can get a mortgage, so the buyer pool is smaller, so the price is lower. This alone explains a large part of the discount, and it is a very different situation from the standard minimum down payment rules in BC.
Resale uncertainty. When you go to sell, your buyer faces the same shorter lease and the same lender list, only worse. The discount you enjoyed going in is the discount you pay going out, usually a bigger one.
The upside is genuine though. For the same monthly cost you often get more space, a better building, or a location you simply could not afford freehold. In False Creek South, the West End and on UBC lands, leasehold is how a lot of people got into a neighbourhood at all. If you are weighing that trade off, our comparison of condo, townhouse and detached ownership in North Vancouver is a useful companion read.
Prepaid vs Non Prepaid Leasehold: The Distinction That Changes Everything
This is the single most important thing to establish, and many listings blur it.
Prepaid leasehold. The ground rent for the entire term was paid upfront by the original developer. You pay strata fees and property taxes, and no monthly ground rent. Your carrying cost is predictable, and lenders are far more comfortable. Most institutional lenders who touch leasehold at all will only do prepaid, and typically only government or university land.
Non prepaid leasehold. You pay ground rent monthly, and critically, that rent gets renegotiated at set intervals, often every five, ten or twenty years. If land values have doubled, your ground rent can jump dramatically at the reset. This has happened in Vancouver, and owners have been forced to sell.
The BC Assessment and title records will say “Leasehold Prepaid Strata” or “Leasehold Nonstrata” and similar. Read the actual lease, not the listing description. If it is non prepaid, you need to know the exact date of the next rent review and the formula used to set the new rent. Not the current rent. The formula. That ground rent sits on top of the strata fee, so read it alongside what strata fees actually cover in a BC building.
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Years Remaining on the Lease: The Number That Decides Your Financing
Everything about a leasehold comes back to years remaining.
| Years remaining | What it means in practice |
| 80 plus | Financing is available from the leasehold lenders, resale is reasonable |
| 60 to 80 | Still workable, but expect 25% to 35% down and a shorter amortization |
| 40 to 60 | Lender list narrows sharply, amortization gets capped, resale slows noticeably |
| Under 40 | Very difficult to finance, mostly a cash market, price falls steeply |
| Under 25 | Effectively a long term rental you paid for upfront |
The rule lenders actually apply is not about the lease alone, it is about the lease relative to your amortization. Several BC lenders require the lease to run at least five years past the end of your amortization. A 25 year amortization therefore needs 30 years of lease. One bank requires an amortization at least 10 years shorter than the lease term. Scotiabank’s First Nations leasehold program wants 30 plus years remaining.
Run the number before you fall in love with the unit. A 45 year lease and a 25 year amortization works. A 28 year lease and a 25 year amortization does not. Because the amortization is capped, the payment is higher than a freehold buyer’s at the same price, which changes how much you can actually borrow.
Which Lenders Will Finance a Leasehold and What Down Payment They Want
The list is short and it is mostly credit unions.
| Lender | What they will consider |
| BlueShore Financial | Government prepaid leaseholds only, max 75% loan to value |
| Coast Capital Savings | Prepaid leaseholds on an approved list, up to 80% on the first $1 million |
| Prospera Credit Union | Municipal, UBC, SFU or First Nations land, up to 75% |
| CTBC Bank | UBC and SFU leased land |
| Scotiabank | First Nations leasehold program, 30 plus years remaining |
| Envision, Island Savings, Shinhan | Case by case |
| Strive | Government, First Nations and private leaseholds if insurable |
Practical translation: budget 20% to 35% down, expect a shorter amortization, and get a mortgage broker who has actually closed a leasehold in BC before you write an offer. A subject to financing clause is not optional here, and it should be longer than usual. Our guide to contract conditions in a BC purchase covers how to give yourself that extra time properly.
Where Leaseholds Are Found on the North Shore and in Vancouver
Leasehold in Metro Vancouver clusters in a handful of places:
- False Creek South, on City of Vancouver land, leases originally 60 to 99 years, with ground rent commonly in the $200 to $600 a month range
- UBC and the University Endowment Lands, 99 year leases on university or provincial land
- The West End, private and institutional landowners, terms from 40 to 99 years
- Coal Harbour, some Port and City owned parcels
- First Nations lands, including significant developments across the region
On the North Shore leasehold is comparatively rare. Most North and West Vancouver strata inventory is freehold, which is one reason a leasehold listing here can look like a bargain in a search filter and needs a closer look than a similarly priced freehold unit down the street. You can scan current inventory yourself through the MLS search, but the tenure will not always be obvious from the listing page.
If you are seeing a North Shore listing priced well below the comparables, it is worth a five minute check on the title before you get attached. Navid Hakimi can pull the title and the lease terms on any listing you are considering and tell you quickly whether the discount reflects the lease or reflects an opportunity.
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What Happens When the Lease Expires
At expiry, the buildings and improvements revert to the landowner. Legally, your ownership ends.
In practice, leases usually get renegotiated. False Creek South has a history of extensions and renewals, and municipal landlords face real political pressure not to displace hundreds of households. But renewal is not a legal right, and any renewal comes on new terms, which can mean substantially higher ground rent or a payment to extend.
The way to think about it is this: you are not buying a home that vanishes in year 60. You are buying an asset whose value drops toward zero as the term runs out, unless a renewal happens on terms you can afford. That is a legitimate thing to buy at the right price. It is a bad thing to buy at freehold minus 10%.
Who a Leasehold Actually Makes Sense For
It can work if you:
- Have a large down payment, 30% or more, and are not stretching
- Plan to live there ten years or longer, not flip in three
- Are buying with 60 plus years remaining on a prepaid lease
- Want a neighbourhood or unit size that is otherwise out of reach
- Understand you may recover less equity than a freehold owner would
Walk away if you:
- Need minimum down payment financing
- Are buying as an investment or expect strong appreciation
- Are looking at a non prepaid lease with a rent review coming up
- Have under 50 years remaining and no clear renewal framework
- Would need to sell quickly if life changed
Whichever way you land, the building itself still needs the same due diligence as any strata. Run through the North Vancouver condo buyer checklist and learn how to review strata documents before buying in BC, because a short lease and a failing envelope is a combination with no exit.
Frequently Asked Questions
Do I pay property transfer tax on a leasehold?
Yes, on the fair market value of the leasehold interest. First time buyer exemptions can still apply.
Can I get a leasehold with 5% down?
Almost never. Expect 20% to 35% down.
Do leaseholds appreciate?
They can in a rising market, but the shrinking term works against you, so they generally underperform freehold in the same building type.
What is ground rent and who sets it?
A payment to the landowner for use of the land. On a prepaid lease it is already covered. On a non prepaid lease it is set by the lease formula and reviewed at fixed intervals.
Is leasehold the same as a co op?
No. A co op means you own shares in a corporation that owns the building. Leasehold means you own the unit and lease the land. Both are harder to finance, for different reasons.
Can I rent out a leasehold unit?
Usually yes, subject to strata bylaws and the head lease. Some university and municipal leases restrict it, so check both documents.
What happens if the strata wants to redevelop?
On leasehold land the landowner’s consent is required, which makes redevelopment far harder than in a freehold strata.
Are leasehold strata fees higher?
Not inherently, but on a non prepaid lease the ground rent sits on top, so the total monthly cost is higher than the strata fee suggests.
How do I find out how many years are left?
It is on title and in the head lease. Your realtor or notary can pull it in a few minutes.
Will the lease be renewed?
Nobody can promise that. Look at the landowner’s track record and any renewal framework written into the lease, and price the uncertainty in.
Considering a Leasehold Unit? Have the Lease Reviewed Before You Write an Offer
Leasehold is one of the few areas of BC real estate where the document matters more than the property. Two units in the same building can be worth very different amounts depending on lease type, years remaining and the rent review clause.
Navid Hakimi reviews the title, lease terms and financing reality on any leasehold a North Shore or Vancouver buyer is considering, and will tell you plainly when the discount is not big enough for the risk.
Send over a listing you are looking at and get a straight answer before you write an offer.
Lender criteria and market conditions are current as of September 2026 and vary by applicant. Confirm financing with a licensed mortgage professional and lease terms with your lawyer or notary.
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