Leasehold Land & Freehold Land: What's the difference

We often get the question about the difference between Leasehold Land & Freehold Land.  While the majority of purchases in Greater Vancouver are "Freehold" there are Leasehold properties also (Land owned by Indigenous peoples, Cities, municipalities, others), so it's important to know the difference. Let's break it down:

 

Freehold Land:

   - When you own freehold land, you have absolute ownership of both the land and any buildings or structures on it.

   - You have the right to use, occupy, and sell the land as you wish, subject to any local regulations or restrictions.

   - Freehold ownership typically lasts indefinitely and can be passed down through generations.

 

Leasehold Land:

   - Leasehold land involves leasing the land from the freehold owner for a specific period, usually long-term but with a defined end date.

   - As a leaseholder, you have the right to use the land for the duration of the lease, but you don't own it outright.

   - The terms of the lease, including rent payments and any restrictions on use, are outlined in a lease agreement between the leaseholder and the freehold owner.

   - Leasehold properties often involve paying ground rent to the freehold owner and may have additional charges or conditions outlined in the lease.

 

In essence, with freehold land, you own the land outright, while with leasehold land, you have the right to use the land for a specified period under the terms of a lease agreement.

Want to know more about specific Leasehold Land on the North Shore, how they stack up in value compared to Freehold property and how they react to market changes?  Send us a message for all the details!