Why Is This Condo So Much Cheaper? Leasehold vs Freehold in West Vancouver

by Debbie Evans

West Vancouver Buyer's Guide · Leasehold & Freehold · June 2026 · Debbie Evans, REALTOR® | eXp Realty

"Why is this unit so much cheaper per square foot than everything else in West Vancouver?" It is the question I hear most often at open houses in the Park Royal area — and the answer is almost always the same: leasehold versus freehold ownership. These two words determine your monthly costs, your financing options, your resale market, and your long-term ownership experience. Before you fall in love with a unit, make sure you understand exactly what you are purchasing — and what you are not.

A West Vancouver condo priced at $800 per square foot and one priced at $1,600 per square foot can look nearly identical on paper — same neighbourhood, similar finishes, comparable views. The price gap is not a market error. It is a direct reflection of a fundamentally different legal ownership structure, and every buyer needs to understand that structure before making an offer.

This guide covers everything: the difference between leasehold and freehold, who actually owns the land under WestRoyal, why leasehold properties are not all the same, what a municipal ground lease means for your finances, and when leasehold can represent genuine value for the right buyer.

Is WestRoyal on First Nations Land? The Answer Most Buyers Get Wrong

This is the most frequently asked question I receive about WestRoyal at Park Royal — and the answer surprises most buyers.

WestRoyal (328 and 338 Taylor Way) is not on First Nations reserve land. It is built on fee-simple municipal land within the jurisdiction of the District of West Vancouver, held under a municipal ground lease.^[1,2] The strata plan is registered as LMS445, and the landowner on the ground lease is the District of West Vancouver — a municipal government, not a First Nation.^[3]

Why the Confusion Exists

The confusion is completely understandable — and it has a specific geographic cause. Park Royal South, the shopping centre immediately adjacent to WestRoyal, is located on Squamish Nation land — specifically on Capilano Indian Reserve No. 5, one of the Squamish Nation's reserves along the Capilano River.^[4] The Squamish Nation reserve boundary runs immediately east of the WestRoyal site, across the Capilano River. Buyers who know that Park Royal South operates on reserve land understandably — but incorrectly — assume WestRoyal does too.

The legal boundary matters enormously. WestRoyal sits on District of West Vancouver municipal land. Park Royal South sits on Squamish Nation reserve land. They are adjacent. They are not the same.

This distinction has direct practical consequences. First Nations leasehold properties and municipal leasehold properties operate under completely different legal frameworks, carry different financing considerations, and involve different landowners with different renewal processes. Buyers evaluating WestRoyal are dealing with a municipal ground lease — not a reserve land lease — and the two should not be confused. WestRoyal's leasehold structure has been well known in the marketplace for decades and is reflected in the building's pricing, financing options, and resale values.

The single most important question in any leasehold purchase is not "how long is the lease?" — it is "who owns the land?" The answer shapes everything else: the legal framework, the renewal process, the financing landscape, and the long-term security of your investment.

Not All Leaseholds Are the Same

The word "leasehold" covers a wide range of ownership structures in British Columbia. Buyers who have researched leasehold properties elsewhere — on reserve land, near universities, or through private landlords — should understand that WestRoyal's municipal leasehold structure is meaningfully different. Here is a brief overview of the four main types.

Type 1

Municipal Leasehold

Example: WestRoyal, 328–338 Taylor Way, West Vancouver

Land owned by a municipal government. Ground lease negotiated and renewed with the municipality. Title is fee-simple municipal land. Financing from major Canadian banks is generally available when sufficient lease term remains. Many buyers view municipal leaseholds as among the more predictable leasehold structures because the landowner is a public entity. This is the structure at WestRoyal.

Type 2

First Nations / Reserve Land Leasehold

Examples: Park Royal South (Squamish Nation)

Land held as reserve land under the Indian Act or a First Nation's self-government framework. Ground lease negotiated with the Nation's council. Financing can be more restrictive — some lenders decline reserve land properties entirely. Legal framework differs from municipal or provincial fee-simple land. Rights of renewal depend on the Nation's policies and the specific lease terms.

Type 3

University / Institutional Leasehold

Examples: UBC properties (University Endowment Lands)

Land owned by a university or institutional endowment. Common at UBC, where extensive residential development sits on University Endowment Lands. Generally treated similarly to municipal leasehold for financing purposes when sufficient term remains. Governed by the university's own leasehold policies and BC's University Act.

Type 4

Private Leasehold

Examples: Some older strata and resort properties

Land owned by a private individual or corporation. This structure carries the most variability in renewal certainty — the landowner is a private party with no public accountability obligation. Financing can be the most challenging of all leasehold types. Due diligence on the landowner's identity and financial stability is particularly important.

Freehold Strata: The Standard Structure

Freehold strata is the default ownership structure for most condominiums in West Vancouver and on the North Shore. When you purchase a freehold strata unit, you own your individual suite outright and hold a proportional share of the common land with every other owner in the building. There is no expiry date on that land interest. Your strata fee covers building maintenance, management, and shared amenities — but there is no separate land lease cost embedded in it.

This is what most buyers assume they are getting when they purchase a condominium anywhere in BC. In most buildings, they are right.

Leasehold Strata: What's Different — and Why It Matters

In a leasehold strata, you own your individual unit — but the land beneath the building is owned by a third party, and the strata corporation leases it under a long-term ground lease. At WestRoyal at Park Royal, the land is owned by the District of West Vancouver. The lease runs until 2087 — 61 years remaining as of 2026.^[2,5]

Prepaid vs not prepaid

Some leasehold stratas have purchased the ground lease obligation in full upfront — a prepaid lease. In a prepaid leasehold, the ongoing land cost is no longer a recurring obligation and monthly carrying costs are lower. WestRoyal is not prepaid. The ongoing land lease cost is bundled into the $920.81/month strata fee. This is the primary reason leasehold buildings with unprepaid ground leases carry strata fees substantially higher than comparable freehold buildings.

Standard structure

Freehold Strata

✓ Own the unit and a proportional share of the land
✓ No lease expiry — ownership is permanent
✓ Standard mortgage financing from all major lenders
✓ Lower strata fees — no land lease component
✓ Broader buyer pool at resale
− Higher purchase price per square foot

WestRoyal / municipal ground lease

Leasehold Strata (Not Prepaid)

✓ Own the unit — land leased from District of West Vancouver
✓ 61 years remaining — financeable for standard amortizations
✓ Significantly lower purchase price per square foot
✗ Lease expires 2087 — term shortens over time
✗ Higher strata fees (land lease cost embedded)
✗ Narrower buyer pool; some lenders decline
✗ Resale value compresses as remaining term decreases

The Price Gap — What the Market Is Telling You

$588–$661

Per sq.ft. — Leasehold strata (WestRoyal recent sales)

$1,083–$1,619

Per sq.ft. — Freehold strata (West Vancouver comparable sales)

At 1,245 sq.ft., a freehold strata unit of comparable quality in West Vancouver would likely be priced in the $1.35M–$1.6M range. A leasehold unit of the same size in WestRoyal has been trading at $760,000–$850,000 when sold. The gap — roughly $1,000 per square foot — reflects what buyers correctly price into the leasehold structure: higher monthly costs, a narrower financing landscape, and a resale market that shrinks progressively as the lease term decreases.

This is not a hidden risk. It is the market correctly valuing a different tenure type — and any buyer who understands both sides can make a genuinely informed decision.

Monthly Carrying Costs: The Number Buyers Most Often Underestimate

Cost Component	Monthly Amount	Notes
Strata fee	$920.81	Includes gas, hot water, caretaker, management, and embedded ground lease cost
Property taxes	~$245	Based on 2024 annual assessment of $2,941.93
Fixed costs before mortgage	~$1,166	Confirmed carrying costs regardless of purchase price

What buyers often miss

The strata fee at a leasehold building isn't just "higher maintenance costs." Part of it is the embedded cost of leasing the land your building sits on. When you see a $920/month strata fee versus $650/month at a comparable freehold building, the difference is partly structural — not a reflection of the building's quality or management efficiency.

Financing a Leasehold Property

Lease Term vs. Amortization Most major lenders require the remaining lease term to extend substantially beyond the end of the mortgage amortization — typically by five to ten years or more. With 61 years remaining on the WestRoyal lease, standard 25–30 year mortgages are generally accommodated by most lenders.
Lender Policy Variation Unlike freehold properties where virtually all lenders participate on similar terms, leasehold financing involves more variability. Some institutional lenders decline leasehold properties categorically. Confirming with a mortgage broker who has direct experience with leasehold properties before writing an offer is not optional — it is essential.
Buyer Pool Implications A narrower lending landscape for your purchase also means a narrower lending landscape for your future buyer. A property that some lenders won't finance today is a property with a smaller resale buyer pool tomorrow. That constraint compounds over time as the remaining lease term shortens.

What Happens When the Lease Expires?

The WestRoyal ground lease expires in 2087. At that point, the lease would need to be renegotiated with the District of West Vancouver. Given that WestRoyal is a well-established 183-unit concrete tower on prime municipal land, renewal is a realistic expectation — but it is not guaranteed, and the terms of any renewal, including the ground rent, are unknown.

The more immediate concern for most buyers is not 2087 itself. It is the predictable compression in resale value that occurs as any lease term shortens. A property with 61 years remaining behaves very differently in the market than one with 30 years remaining. For a buyer with a 10–15 year horizon, this is manageable. For someone thinking about a multi-generational asset, it is a material consideration.

Why WestRoyal Continues to Attract Buyers

Location is one reason WestRoyal continues to attract buyers despite its leasehold structure. Situated adjacent to Park Royal, residents can walk to shopping, restaurants, Whole Foods, medical offices, banks, and daily conveniences that many communities require a car to access. Downtown Vancouver is minutes away via the Lions Gate Bridge, while Ambleside's waterfront, the Seawall, and the North Shore trail network are close at hand — a combination of urban access and outdoor lifestyle that is difficult to replicate at any price point.

The building itself offers concrete construction, generous floor plans that are larger than most new West Vancouver condominium development, an indoor pool and spa, fitness facilities, and a resident caretaker. Views from many units — particularly on the higher floors facing southwest — take in the ocean, Lions Gate Bridge, Stanley Park, and the city skyline. These are assets that would command a significant premium in comparable freehold properties.

For many buyers, the conversation is not simply leasehold versus freehold. It is whether the combination of location, lifestyle, amenities, and purchase price provides better overall value than a smaller or less well-located freehold alternative at the same budget. That is a question worth answering carefully — and with complete information about the carrying costs on both sides.

Frequently Asked Questions

Questions buyers ask me regularly about leasehold properties, WestRoyal, and how the tenure structure affects their decision.

Is WestRoyal on First Nations land?

No. WestRoyal at 328–338 Taylor Way is built on fee-simple municipal land owned by the District of West Vancouver. It operates under a municipal ground lease — not a reserve land lease. The confusion arises because Park Royal South, immediately adjacent to WestRoyal, is located on Squamish Nation land (Capilano Indian Reserve No. 5). The two properties share a neighbourhood but are governed by entirely different legal frameworks.

Is a leasehold condo a bad investment?

Not categorically, but it is a different investment with different parameters. The purchase price discount is real. So are the higher monthly costs, the narrower financing options, and the resale compression as the lease term shortens over decades. Whether it makes sense depends on your time horizon, your monthly budget, and what alternatives exist at the same price point.

Can I get a mortgage on a leasehold property in BC?

Generally yes, provided sufficient lease term remains relative to your amortization period. With 61 years remaining on the WestRoyal lease, most standard 25-year mortgages are accommodated by most major lenders. That said, leasehold financing is more variable than freehold — not all lenders participate, and the differences between institutions are meaningful. Confirming with a mortgage broker before writing an offer is essential.

Why is the strata fee so much higher in a leasehold building?

In a leasehold building with an unprepaid ground lease, the ongoing land lease cost is collected through the strata fee rather than invoiced separately. The $920.81/month strata fee at WestRoyal covers caretaker, garbage, gardening, gas, hot water, and management — but it also includes the embedded ground lease component. The embedded lease cost is what drives the gap versus comparable freehold buildings.

What is a prepaid leasehold, and is it different from WestRoyal?

Yes — significantly. A prepaid leasehold means the strata corporation has purchased the ground lease obligation upfront and in full. Individual owners no longer pay an ongoing land lease component. Prepaid leaseholds are generally easier to finance and carry lower monthly costs than unprepaid leaseholds like WestRoyal.

How do I know if a property is leasehold when searching MLS?

The land tenure is disclosed in the MLS listing details — look for "Leasehold Not Prepaid" or "Leasehold Prepaid" in the tenure field. You will also find the lease expiry year and the name of the landowner. If you are unsure what you are looking at, ask your agent before you book a showing.

What due diligence should I do before buying a leasehold property?

Confirm who owns the land and the specific legal framework governing your lease. Complete the standard strata document review — minutes, financials, depreciation report, bylaws — plus request and review the full ground lease agreement including renewal provisions. Confirm your lender will finance the specific property, and verify exactly what is included in the strata fee.

Before You Make an Offer on a Leasehold Property

Due Diligence Checklist

Confirm who owns the land — municipal, First Nation, university, or private — and understand the specific legal framework that governs your lease
Confirm mortgage pre-approval with a broker who has direct experience financing leasehold properties — not all lenders participate on the same terms
Verify the full strata fee breakdown: what portion is building maintenance and what is the embedded ground lease cost
Request and review the complete ground lease agreement with the District of West Vancouver, including renewal provisions
Complete the standard strata document review: meeting minutes, financial statements, depreciation report, and bylaws
Confirm the current rental allowance percentage and any waitlist if you anticipate needing to rent the unit in future
Walk the unit before any offer — assess condition and develop a realistic update budget that factors into your negotiated price
Understand the resale timeline implications of the specific years-remaining figure at the time of your exit

The Bottom Line

West Vancouver's leasehold properties offer real value in a market where freehold condos of comparable size and quality often price buyers out entirely. The discount is genuine, the buildings are well-established, and the amenities are real. For buyers with a clear-eyed view of the monthly costs, a confirmed financing path, and a time horizon that works with the lease term, leasehold can be the right answer.

WestRoyal is not on First Nations land. It is a municipal leasehold property governed by a ground lease with the District of West Vancouver — a stable, accountable landowner in one of the most desirable municipalities in Canada. The tenure type needs to be the first conversation, not the last.

If you are evaluating a leasehold property and want a full picture of what the monthly costs, negotiating position, and leasehold comparables look like for a specific unit, that analysis is worth completing before you sit down at the table — not after.

Sources & References

[1] Federal Lands Registry / Natural Resources Canada — Strata Plan LMS445, confirming West Royal site as fee-simple District of West Vancouver land. partii-partiii.fng.ca
[2] Real Estate North Shore — WestRoyal Building Profile, 328–338 Taylor Way — leasehold structure and District of West Vancouver ground lease details. realestatenorthshore.com
[3] Zealty.ca — Strata Plan LMS445, The Westroyal, 338 Taylor Way — strata registration and land tenure confirmation. zealty.ca
[4] Squamish Nation — Capilano Indian Reserve No. 5 and Park Royal land holdings. squamish.net
[5] YouLive.ca — The West Royal building profile, leasehold term and strata details. youlive.ca
[6] BC Real Estate Association MLS® / SnapStats® — West Vancouver attached market sales data, April–May 2026. Leasehold and freehold comparable sales used in pricing analysis.
[7] BCREA MLS® Records — Sale history for 18D, 338 Taylor Way and comparable WestRoyal units. MLS® listing R3123820.

Debbie Evans | REALTOR® & Registered Interior Designer

eXp Realty | West Vancouver, North Shore & Sea-to-Sky Markets

35+ years of combined real estate and registered interior design practice on the North Shore and Sea-to-Sky. If you have questions about a specific leasehold property, the full carrying cost picture, or how WestRoyal compares to freehold alternatives at the same budget, that conversation is worth having before you make an offer.

westvanliving.ca · debbie.evans@exprealty.com · +1 (778) 875-4934

This article is prepared for informational and educational purposes only. It does not constitute legal advice, financial advice, or a formal appraisal. Land tenure and reserve land boundary information is sourced from publicly available records as referenced above — buyers should independently verify all land title details with a BC lawyer or notary before completing any transaction. Market data references West Vancouver and North Shore MLS® sales through spring 2026.