Leasehold Estate
Understand leasehold estates in Canadian real estate — what they are, how they work, and their implications for property value.
August 08, 2025
What is a Leasehold Estate?
A leasehold estate is an interest in real property where a tenant holds the right to use and occupy the property for a specified term under a lease agreement.
Why Leasehold Estates Matter in Real Estate
In Canadian real estate, leasehold estates allow tenants long-term use of land or property without owning it outright.
Key points:
- Lease terms can range from short-term to 99 years or more
- Tenant’s rights and obligations defined in the lease
- Leasehold interests may be sold or assigned with landlord consent
Understanding leasehold estates helps buyers and tenants evaluate property value and obligations.
Example of a Leasehold Estate in Action
The buyer purchased a condo on leasehold land with 70 years remaining on the leasehold estate.
Key Takeaways
- Tenant’s right to use property for a fixed term
- Lease terms define rights and responsibilities
- Common in commercial and some residential settings
- May affect financing and resale value
- Requires understanding of lease conditions
Related Terms
- Ground Lease
- Lease Agreement
- Fee Simple
- Net Lease
- Title Search
Zenterra Developments
KPMB Architects, Toronto Community Housing Corporation
WW+P Architects and Planners, Cobe, Castlepoint Numa
Karakusevic Carson Architects, Toronto Community Housing Corporation
BDP Quadrangle, Tridel 
AS + GG Architecture