Strata Leaseholder FAQs
Strata leaseholders could consider consolidating leases at the enclave or community level, by establishing a homeowner corporation/association to achieve collective strength to negotiate future lease modifications or extensions. *RePlan is investigating what’s involved in this option.
Each leaseholder will make their own decisions as they have the final say for their own lease. Our ask has been that leaseholders be given options to consider by the City by June 2018.
By being and staying informed and by talking to your neighbours about the issues and options.
No, the City plans to consider options for infill development in the “neighbourhood edge” area along 6th Avenue to increase affordable housing, where the first phase of community planning will take place. Planning and any redevelopment of existing housing is not part of this phase. The planning process for existing FCS sites under long term land leases doesn’t begin until the second phase, and that timeline is still to be determined.
The City has not yet indicated the length of term it is considering. But we are requesting a total remaining lease term that extends an existing lease to a minimum remaining term of 60 years.
We would also like a mechanism in place for future lease extensions that ensures the remaining term does not fall below 30 years – a kind of “rolling renewal” – without impairing the ability to redevelop lands as required. And so mortgages can be amortized over 25 years. (Financial institutions will amortize for five years less than the lease term.) This approach will preserve affordability for purchasers and for maintaining and improving buildings.
We are seeking different options to suit different leaseholders’ preferences and needs. Payment options could include:
- Monthly payments
- Full pre-payment which would integrate cost savings
- Deferring payment, with interest applied, until transfer of title upon sale or transfer to an estate (similar to a reverse mortgage)
- Sharing future incremental equity with a governing body, or capping or limiting the sale price of leases as part of the lease payment
If the City decides to modify the lease payment terms, this would be negotiated by agreement with leaseholders.