by Faiza Ahmed (Broker) 
When it comes to buying a condo, most people focus on location, square footage, or amenities but there’s another crucial detail that often gets overlooked: Is the condo freehold or leasehold? This small line in a listing can have a big impact on what you actually own, how long you own it, and what it might cost you over time.
Let’s break down the core differences between freehold and leasehold condos in simple terms starting with what most buyers want to know first.
Quick Comparison: Freehold vs Leasehold Condos
| Feature | Freehold Condo | Leasehold Condo |
|---|---|---|
| Ownership | Own the unit and a share of the land. | Own the unit only; land is leased. |
| Land Ownership | Yes – jointly with other unit owners | No – land is leased from a third party |
| Term of Ownership | Indefinite | Fixed term (usually 50–99 years) |
| Renewal | Not applicable | May be possible, but not guaranteed |
| Cost | Higher upfront cost, but no lease fees. | Lower purchase price, but ongoing lease payments. |
| Appreciation | Stronger long-term value growth. | Value declines as lease expires. |
| Financing | Easier to mortgage (banks prefer freehold). | Limited financing if lease < 30 years. |
| Resale Potential | High demand; stable market. | Harder to sell near lease end. |
What Is a Freehold Condo?
A freehold condominium means you own your individual unit outright plus a portion of the land and common areas (like the lobby, rooftop, gym, etc.) along with the other unit owners. It’s the most common form of ownership in many areas, especially in North America.
Freehold Condo Advantages✔️ Full ownership that doesn’t expire ✔️ Higher resale value and appreciation potential ✔️ More flexibility when renovating or renting (subject to condo rules) | Freehold Condo Drawbacks❌ Higher purchase price ❌ More responsibility in maintaining common areas (through condo fees) |
What Is a Leasehold Condo?
A leasehold condominium means you own your unit, but not the land it sits on. Instead, the land is leased—often from a government body (like a university or Indigenous trust) or a private landowner—for a fixed number of years, typically between 50 and 99.
Leasehold Condo Advantages✔️ Lower purchase price upfront ✔️ Can be ideal for short- to mid-term living (especially in urban or university-adjacent developments) | Leasehold Condo Drawbacks❌ The value may decline as the lease term shortens ❌ Financing can be harder to obtain (some lenders avoid short leaseholds) ❌ Renewals may not be guaranteed or could come with additional costs |
Why Does This Difference Matter?
Imagine buying a leasehold condo with 20 years left on the lease—your rights to the unit could end when the lease ends unless it’s renewed. Even if renewed, new terms may apply. That uncertainty can affect:
Your ability to get a mortgage
Long-term resale value
Inheritance planning
By contrast, a freehold condo gives you long-term security. You can own, renovate, and pass it on—just like a house, but without the lawn care.
When Is a Leasehold Condo a Good Option?
Leasehold condos aren’t automatically a bad deal. They can be a smart move if:
You plan to live in the unit for a short period
You’re buying in a location where freehold options are scarce or too expensive
You understand the lease terms and future obligations clearly
For example, some downtown city centres or resort communities offer leasehold properties at lower prices—appealing for retirees, students, or investors looking for short-term value.
Final Thoughts
Freehold condos offer ownership security, better financing options, and greater resale potential. Leasehold condos can offer affordability, but require careful evaluation of the lease length, renewal terms, and associated risks.
If you’re considering either option, always review the condo declaration documents, lease agreements, and seek legal advice. Understanding what you truly own—or don’t—can make all the difference in your long-term satisfaction and investment.