Leasehold Estate

Understand leasehold estates in Canadian real estate — what they are, how they work, and their implications for property value.

Leasehold Estate

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

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

For Shopping Malls, Is Yorkdale’s “Snobbery” Simply A Sign Of The Times?

For Shopping Malls, Is Yorkdale’s “Snobbery” Simply A Sign Of The Times?

From Rolex, Tiffany & Co., and Van Cleef & Arpels, to new Chanel, Dior, and Gucci stores, Toronto’s Yorkdale Shopping Centre houses the world’s top luxury brands under one ever-evolving roof. It’s sleek, chic, and curated – a different world than the Yorkdale I knew growing up. And the now-luxury mall’s message is becoming loud and clear: Unless you’re one of us, you can’t sit with us. In a court ruling on February 9, Justice Jessica Kimmel blocked Fairweather-owned brand Les Ailes de la Mode from moving into Yorkdale’s former Hudson’s Bay Company (HBC) real estate.

According to court filings, Oxford Properties, Yorkdale’s landlord, said Fairweather stores “look and feel temporary and downmarket.” So, Oxford would rather lose millions in rent than cheapen the Yorkdale brand, which they call a “leading luxury retail destination.” Harsh? Maybe. But when we consider the future of Yorkdale, and of the shopping mall in general, the “mean girl” move makes sense.

Keep ReadingShow less

BC Raises Taxes, Adjusts Housing Investments, And Partners With Build Canada Homes

BC Raises Taxes, Adjusts Housing Investments, And Partners With Build Canada Homes

BC Minister of Housing & Municipal Affairs Christine Boyle and federal Minister of Housing Gregor Robertson. (Government of British Columbia)

This week, a series of announcements were made that will go a long way towards shaping what the near future of government investment in housing looks like in British Columbia.

On Tuesday, right after the long weekend, the Province unveiled Budget 2026, confirming what was widely expected to be a record-setting deficit. In 2022, the Province had a $1.3 billion budget surplus. A few years later, the Province is now projecting a deficit of $13.3 billion for 2026-2027.

Keep ReadingShow less

Hyde Park Homes Purchases Berkeley Church, Cites Plans To Reopen Fall 2026

Hyde Park Homes Purchases Berkeley Church, Cites Plans To Reopen Fall 2026

The Berkeley Church at 315-317 Queen Street East in Toronto/Google Maps

More than two years after its parent company, Berkeley Events, was placed under receivership, Toronto’s Berkeley Church has been purchased by Hyde Park Homes, with the company revealing to STOREYS that they have plans to reopen the historic event venue later this year.

Built in 1871, the three-storey, brick-faced building at 315-317 Queen Street East in Corktown was initially a Wesleyan Methodist Church. In 1999, the space was converted into an event venue, used for weddings, corporate events, parties, conferences, and even some concerts (Tegan and Sara, Feist, and the Yeah Yeah Yeahs, just to name a few). The property was designated under the Ontario Heritage Act in 1997.

Keep ReadingShow less

CREA: Winter Storms Suppress January Home Sales

CREA: Winter Storms Suppress January Home Sales
Max Sandelin/Unsplash

Canadian home sales started 2026 on a colder note, with activity dampened by severe winter weather across parts of the country.

According to new data released Tuesday by the Canadian Real Estate Association (CREA), home sales recorded over Canadian MLS® Systems fell 5.8% month-over-month in January. Actual (not seasonally adjusted) sales were also 16.2% lower than in January 2025.

Keep ReadingShow less

New (Free) Guide Shows Toronto Homeowners How To Tap Into ‘Missing Middle’

New (Free) Guide Shows Toronto Homeowners How To Tap Into ‘Missing Middle’

'Missing Middle' housing in Toronto

Liam Gill doesn’t describe himself as a developer, but that hasn’t stopped him from carving out a place in Toronto’s development landscape. Now, the lawyer and tech entrepreneur wants to help others do the same with his Citizen Developer’s Guide, released Wednesday morning in collaboration with More Neighbours Toronto.

The guide is designed for people like Gill — those without a formal background in real estate development, but with an interest in densifying their own home or investment property. Throughout the document, Gill walks readers through how to estimate build costs, cash flow projections, and ultimate market value, and go about the zoning, permitting, and financing processes.

Keep ReadingShow less

Rental Proving An Anchor In Canadian Real Estate For 2026

Rental Proving An Anchor In Canadian Real Estate For 2026

TELUS Living Nanaimo (Omicron)

Canada’s rental housing market may not always grab snappy headlines, but it’s quietly proving its staying power.

Across the country, large-scale organizations are putting capital into purpose-built rental housing, whether through acquisitions, repurposed properties, or REIT activity. The trend is less about flashy growth and more about steady, strategic investment — a trend that’s already shaping 2026.

Keep ReadingShow less

Vancouver To Develop Affordable Multiplex Via Housing Design Catalogue, Federal Funds

Vancouver To Develop Affordable Multiplex Via Housing Design Catalogue, Federal Funds

The “BC Fourplex 01” concept from the Housing Design Catalogue. (CMHC)

Last week, Vancouver City Council greenlit a new social housing project that will be undertaken using a series of tools introduced, in recent years, by the Government of Canada.

The project is set for 3122 SE Marine Drive, at the intersection with Kerr Street near the Fraser River and River District.

Keep ReadingShow less

City Council Advances 3 Projects Under ‘Toronto Builds’ Framework

City Council Advances 3 Projects Under ‘Toronto Builds’ Framework

Rendering of 9 Shortt Street/CreateTO, Montgomery Sisam

Toronto City Council approved zoning for about a dozen housing projects at its February session — held last week — and of those, three will be rolled out under the new Toronto Builds policy framework.

Toronto Builds, approved in May 2025, consolidates the eligibility criteria and requirements of Housing Now, ModernTO, and the parking-to-homes and public developer initiatives. A CreateTO progress update from July identified 36 sites that will be developed under the unified framework, including the three that have just been green-lit by Council.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.