Leasehold Properties in Whistler
What is a leasehold property?
A leasehold property is a property that has a landlord and a tenant, whereby the tenant occupies the land/property for the duration of an agreed upon term. Sometimes these leases are prepaid, or have ongoing lease payments. Whistler’s leasehold properties are prepaid. At the end of the term, the lease is either renewed based upon an initial lease agreement stipulating a ‘right of renewal’ for an agreed upon term(s), or the lease expires without a renewal option in which case 1 of 2 things can happen in the case of a stratified property:
1- the landlord and tenant agree to a new lease agreement under the same terms and conditions as before, however the rent (for the lease) can be charged at current market rates and the term length can also be changed.
2- the landlord must buy out the tenants if no new lease can be agreed upon, again at current market rates; if the basis for calculating the purchase price was not set out in the original strata lot lease.
So what properties in Whistler are Leasehold?
Eva Lake Village
1,2,3 bedroom condos/townhomes located in the Nordic Whistler subdivision. This complex also has an employee restricted covenant on the title to the properties, meaning anyone can own them but an employee or retiree of a Whistler based business must occupy it. There is also 1 building in the complex that is freehold, not leasehold; confusing right?! The leasehold buildings have a 99 year lease with a plan for the municipality to purchase the units at fair market value, or as decided by arbitration. However when the time comes I am sure the municipality will try and renegotiate a lease.
2 and 3 bedroom townhomes located in the Brio Whistler subdivision which is within walking distance to Whistler village. Again, this complex also has an employee restricted covenant. It too too has a 99 year lease with no right of renewal.
Studios, 1 bedroom and 2 bedroom units. Built in the 1970’s this complex is located in the southern end of the Nordic Whistler subdivision, close to the creekside gondola. This complex is a little different from the first 2 in that banks do not lend on it (meaning no conventional mortgages), but also that anyone can own or occupy it (no employee restrictions) and it can also be rented out on a short-term (nightly) basis which is great for revenue production. All your expenses (maintenance fees, taxes etc) are covered in your monthly strata fee, and it has a 200 year lease but all owners make up the value inn association and therefore have a voice in decision making about the leases when they expire.
Leasehold properties in Whistler don’t have to be daunting, you just need to understand them!