Freehold vs. Leasehold in North Vancouver: Part 1
What does it really mean to buy a home on leasehold land? Let's break down how it compares to freehold ownership, and what makes Raven Woods a standout example in North Vancouver.
Freehold Properties
- Ownership: You own both the property and the land it's built on.
- Duration: Ownership is perpetual; you can hold the property indefinitely.
- Control: Full control over the property, subject to local zoning and building regulations.
- Market Dynamics: Typically, freehold properties appreciate in value over time, influenced by land value and property improvements.
Leasehold Properties
- Ownership: You own the property (house or condo) but lease the land it sits on for a specified period.
- Duration: Lease terms can vary; common durations are 99 years, 49 years, or even shorter.
- Control: Limited control over the land; subject to the terms of the lease agreement.
- Market Dynamics: Leasehold properties often have lower market prices due to the finite land lease, but this can vary based on lease terms and property location.
🌲 Raven Woods: A Unique Leasehold Community
Located in the serene Roche Point area of North Vancouver, Raven Woods is a distinctive residential community situated on Tsleil-Waututh First Nation land. The development comprises various phases, including Seasons, Deerfield, Destiny, Seymour Village, and The Signature Estates - to name a few - offering a mix of townhomes and condominiums.
Key Features of Raven Woods
- 99-Year Prepaid Lease: Residents purchase a sublease from the developer, Takaya Developments, who holds the head lease with the Tsleil-Waututh Nation. This arrangement means that the lease rent has been prepaid for the entire 99-year term (specific to each development phase), providing stability for homeowners.
- Community Amenities: Despite the leasehold nature, Raven Woods residents enjoy full access to municipal services and amenities, including parks, schools, and recreational facilities, through agreements with the District of North Vancouver.
- Ownership Structure: While you own your home, the land remains under the jurisdiction of the Tsleil-Waututh Nation. This unique structure requires specific legal considerations, especially when it comes to selling or transferring ownership.
🧭 Considerations for Potential Buyers
When contemplating a purchase in a leasehold community like Raven Woods, it's essential to consider:
- Lease Duration: A 99-year lease offers a long-term horizon, but it's crucial to understand the remaining term and any implications for future resale.
- Market Value: Leasehold properties may appreciate differently than freehold properties. It's advisable to consult with real estate professionals familiar with leasehold markets, like us here at Rossetti Realty! We've helped many families both buy and sell in the Raven Woods community.
- Financing Options: Some lenders may have specific requirements or limitations when financing leasehold properties. It's recommended to discuss options with mortgage specialists experienced in leasehold transactions - and we have access to the contacts available that can get you across the finish line.
- Community Governance: Understand the role of the Tsleil-Waututh Nation in community decisions and how it may impact property use and development.
Matt's Final Thought
Raven Woods offers a unique living experience in North Vancouver, combining the tranquility of a forested setting with the benefits of a well-established community. It’s an incredible family and pet-friendly area, with plenty of green space and close access to outdoor activities like hiking, biking, and exploring nearby Deep Cove. While leasehold ownership comes with its own set of considerations, the benefits - including lower upfront costs and a beautiful, serene setting - make it an appealing option for many buyers. If you’re looking for a community that feels like home, Raven Woods might just be the perfect fit.
Reach out to me directly via the form on this page if you'd like to explore homes in this neighbourhood or learn more about leasehold properties!
