Living Kelowna Podcast: Buying on Leasehold Land

In this episode, we delve into the intricacies of leasehold properties in the Okanagan, particularly in West Kelowna, shedding light on what it means for homebuyers. Addressing common queries about leaseholds, the host navigates through the concept, its implications, and whether it's a viable option for potential buyers. Whether you're already in the real estate market or just curious about the dynamics of leasehold land, this podcast equips you with the essential knowledge to make informed decisions about property ownership in the region.

Highlights of Important Information Covered:

1. Definition of leasehold property and its significance in West Kelowna.
2. Explanation of leasehold titled listings in real estate, with a focus on the Okanagan region.
3. The distinction between owning the structure and leasing the land, particularly on Westbank First Nations land.
4. Overview of federally regulated leases lasting either 99 or 125 years, supported by major banks with a low down payment requirement.
5. Introduction to two main types of leasehold land: pre-paid lease (preferred) and unpaid leasehold, with a discussion on the associated costs and lending challenges.
6. Provision of a helpful library of available leases for review, linked in the podcast description.
7. Exploration of perpetual "lease fee" payments and the option to secure a lease with a one-time payment.
8. Emphasis on the importance of consulting a knowledgeable leasehold lawyer before purchasing, especially with unsecured leasehold land.

Key Takeaways:

1. Understanding the distinction between leasehold and freehold, and the implications for homeownership.
2. Awareness of the two main types of leasehold land: pre-paid and unpaid, and their respective advantages and challenges.
3. Recognition of the significance of federally regulated leases and their support from major banks.
4. Access to a library of available leases for review, aiding in making informed decisions.
5. Caution regarding the potential risks associated with unsecured leasehold land, highlighting the need for legal counsel.
6. Insight into the perpetual "lease fee" payment option and the ability to secure a lease with a lump sum payment.
7. Assurance that secure pre-paid leasehold land poses minimal drawbacks, ensuring a sense of security for homeowners.

Relevant Quotes:

1. "A leasehold property means that the owner owns the house/townhouse/condo itself but not the land it is built on."
2. "These [leases] are backed by the federal government and most of the major banks will lend with as little as 5% down."
3. "With a secure pre-paid lease, most of all the big banks will finance with a 5% down payment the same as a freehold property."
4. "In any event, it’s always great to get a knowledgeable leasehold lawyer to provide you with all the information you need before purchasing a property on leased land."

Listen to the Living in Kelowna Podcast with Brandon Grass on your favourite podcast platform.