999 Leasehold property in Hope BC
Hello PFC,
I'm considering leasing land near Hope BC, and my plan is to build a summer cabin or place a tiny home for weekend use.
By looking at other properties around the area, most properties are under a 999 pre-paid private leasehold in the same community. based on what the real state agent mentioned, the value of the property will appreciate similar to regular freehold property because of the long-duration of the lease. I'm aware the main downside is that I would not own the land and any potential buyers (if I decide to pass the lease to somebody else) might need to find a lender that can offer mortgages for these types of properties.
Has any of you purchased/selling any property with these long pre-paid leases? what has been your experience? The company I'm leasing the land from has been in operation for a while and there's a decent amount of houses that were "sold" by the same developer since the early 90s.
Posted May 11, 2023, 6:27 AM UTC
Sounds like manning park / sunshine valley.
No issue, but just assume that you don’t own the land so there’s always a small downside to long term value. If you’re using this for your own benefit and not “investment” then leasehold really isn’t an issue, especially at 999 year lease. ( are you sure that’s not 99 year?)
Correct, it is in the Sunshine Valley. At the moment it is it for my own benefit and plan to keep it for a long time. I’ve double checked the information and it is indeed 999 years. Thanks for the feedback!
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Also sometimes harder to get mortgage approvals with lease land