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
An overview of Hedge Road Landing. (Alliance Homes)
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
Highlights from the Delta Golf & Country Club listing brochure. (Colliers)