Understanding Leasehold Properties in British Columbia: What Are You Really Buying?
When people think of buying a home in British Columbia, they usually imagine owning the land and the home outright. But in certain areas, particularly in urban centres like Vancouver or Burnaby, you’ll come across leasehold properties — and that can raise a lot of questions. What exactly are you buying? What rights do you have? How does it differ from traditional freehold ownership?
Let’s break it down...
What Is a Leasehold Property?
In a leasehold arrangement, you are not purchasing the land itself. Instead, you are buying the right to exclusively possess a unit (or parcel) on a property for a specific period of time — commonly 99 years in British Columbia.
This structure is especially common on lands owned by government bodies (like municipalities or universities), Indigenous bands, or other institutional landowners. In these cases, the landowner leases the land to a developer, who then builds housing and sells sublease interests to individual buyers.
What Are You Actually Buying?
When you purchase a leasehold property, you are buying a home, just like in a freehold property — but more precisely, you're buying a subleasehold interest. This gives you:
The exclusive right to occupy your unit for the term of the lease (often 99 years from the original lease date)
The right to sell or assign your leasehold interest
The right to use common property, in the case of strata developments
Even though you don’t own the land, the home functions much like a freehold property in practice.
The Legal and Regulatory Framework
While leasehold ownership may sound different, it still falls within the typical legal framework governing property transactions in British Columbia. That includes:
Municipal bylaws (e.g., Burnaby’s zoning and building regulations)
Provincial building codes
Land Title Act (LTA) – even though leasehold units may not be registered in the Land Title Office the same way freehold units are, they are still recognized legal interests
Property Transfer Tax (PTT) – payable on the full purchase price, not just the value of the lease
Strata Property Act (SPA) – a strata corporation will govern the building once occupied
Real Estate Development Marketing Act (REDMA) – developers must provide a Disclosure Statement and buyers receive a 7-day rescission period to review and possibly cancel their agreement
The Leasehold Structure
The typical leasehold structure looks something like this:
Head Lease – The landowner (such as a municipality, university, or First Nation) leases the land to a developer (often for 99 years).
Sublease – The developer builds a strata property and sells subleasehold units to individual buyers.
Strata Corporation – Once enough units are sold, a strata corporation is formed, just like in a freehold strata.
Terms and Conditions – The subleaseholder agrees to abide by the terms of the head lease and sublease, including any renewal provisions, restrictions, or rent payable to the head lessor (if applicable).
Key Considerations for Buyers
Financing: Many major lenders finance leasehold purchases, but terms can differ — especially as the lease term nears its end.
Resale Value: Leasehold units may appreciate more slowly or differently than freehold homes, especially as the lease term shortens.
End of Lease: It's crucial to understand what happens at the end of the lease term. Some leases have renewal options; others may not.
Final Thoughts
Leasehold properties in BC can be a great opportunity, especially in high-demand urban areas where freehold land is scarce. But it's important to understand what you're really buying — a home with an exclusive leasehold interest, not the land beneath it.
By recognizing the legal framework that governs these transactions and understanding your rights and obligations, you can make an informed decision that works for your goals and timeline.
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Connection is COMING
EMBRACE A SENSE OF INDIGENOUS HERITAGE
Introducing: kʷasən Village in Burnaby
A Rare Opportunity to Own in a Landmark Leasehold Community
kʷasən Village is more than just a place to live—it’s a community deeply connected to the land, culture, and history of the Musqueam and Tsleil-Waututh Nations. Guided by the principle of Embracing Indigenous Heritage, the site has been intentionally designed to reflect the traditions, stories, and values of the Nations while welcoming all who enter.
If you're intrigued by the leasehold structure and want to take advantage of a high-quality, thoughtfully designed community in Burnaby — kʷasən Village is your opportunity. This new development offers beautifully finished homes backed by a long-term 99-year lease, located in one of Burnaby’s most exciting master-planned areas.
✅ Thoughtfully designed homes
✅ Backed by 99-year leasehold structure
✅ Full strata governance & modern amenities
✅ Subject to all typical consumer protections (SPA, REDMA, PTT, etc.)
🔒 Private Access & Early Info
I’m offering private access to kʷasən Village before the general public — including early floorplans, pricing, and VIP previews.
📩 Contact me directly to receive:
Exclusive information about the kʷasən Village project
A breakdown of the leasehold terms
Early access to unit selection before public launch
📞 Joy De Ocampo
📧 jdeocampo@rennie.com
📱 604-445-7082
📍 Licensed Real Estate Professional | Specializing in Pre-Sales & Leasehold Properties
Leasehold isn’t just a technicality — it’s a smart way to own in high-demand areas where freehold simply isn’t available. Reach out today and let’s explore if kʷasən Village is the right fit for you.
