If you’re buying real estate in Greater Vancouver, you’ve probably come across the terms “freehold” and “leasehold” — especially if you’ve been browsing strata property listings in areas like False Creek, UBC, the West End or even parts of East Vancouver. But what exactly do these terms mean, and why does this distinction matter when buying a stratified property?
Understanding the difference between freehold and leasehold ownership is crucial when purchasing a home, because each one carries unique rights, responsibilities, and long-term implications for your investment.
What are Freehold Properties in Greater Vancouver
Freehold properties are the most common type of home ownership. In a freehold property (also known as fee simple ownership), you own both the structure and the land it sits on. This is the most common form of ownership across Vancouver and its surrounding cities, especially for detached homes, townhomes, and most newer condos.
Key benefits of freehold:
- You have full control over the property (within local bylaws)
- You can renovate, rent, or sell without seeking permission from the landowner (unless you are in a stratified unit you will need strata’s permission for major renovations)
- Ownership does not expire — you can hold it indefinitely
- Resale values tend to be stronger due to buyer preference and lender comfort
Where you’ll see freehold: Virtually all single-family homes in Greater Vancouver area are freehold properties. A good majority of strata condos and townhomes outside of specific areas are also freehold.
What are Leasehold Properties in Greater Vancouver
In short, leasehold properties allow you to own the structure, but not the land. With leasehold ownership, you own the physical unit within the buildings structure, but you don’t own the land underneath it. Instead, you lease the land from a third party — often the City of Vancouver, the federal government, a First Nations group, or a private landowner, for a set period (usually 20–99 years).
Once the lease ends, several outcomes are possible: the lease may be renewed, renegotiated, or in some cases, not extended at all.
Key characteristics of leasehold properties:
- Lower purchase price compared to freehold equivalents
- Ongoing lease payments or land rent (on top of strata fees and property taxes)
- Limited ability to make changes or improvements to the land
- Difficult resale and more complex mortgage financing (especially as the lease term shortens)
Where you’ll see leasehold in Vancouver:
- False Creek South (leased from the City of Vancouver)
- UBC/University Endowment Lands (leased from UBC)
- Champlain Heights and some parts of East Vancouver
- West Endin Downtown Vancouver
- Some older co-ops and land trust properties across the Greater Vancouver areas
Why Leasehold Properties Are Cheaper — But Riskier
One of the biggest draws to leasehold real estate is the price. Leasehold condos near UBC or Granville Island often cost 20–40% less than similar freehold units nearby, but that price gap comes with trade-offs:
- Financing restrictions: Lenders may require higher down payments or limit amortization periods
- Resale concerns: Many buyers are hesitant to purchase leaseholds, especially with less than 30–40 years left on the lease
- Uncertainty: You don’t control what happens when the lease expires
Pro tip: Always read the lease agreement and consult your realtor and lawyer. Some leaseholds (like UBC) are prepaid and well-managed, while others have unclear renewal terms.
Which One Should You Choose?
It depends on your real estate goals! If you’re looking for a long-term investment with the most control, freehold is typically the safer and more flexible option. If you’re focused on location and affordability, and you’re comfortable with some uncertainty, leasehold might be worth exploring.
You need to ask yourself:
- Am I planning to live here long-term or sell in a few years?
- Can I afford a larger down payment if the lender requires it?
- Do I fully understand the lease terms and expiry timeline?
Final Thoughts on the Difference Between Buying a Freehold and Leasehold Properties
The difference between freehold and leasehold is more than just legal jargon — it directly affects how you use your home, how it appreciates in value, and how you sell it in the future. Vancouver’s real estate market is already complex, and understanding ownership types is key to making a smart decision.
Still unsure whether freehold or leasehold is right for you? At the Doma Group, we help buyers weigh the pros and cons of each option based on their lifestyle, budget, and goals.
Let’s connect and we can walk you through your options and find the best fit in this fast-moving market!