There is a new trend in leases of Westbank First Nation’s reserve lands. Developers and landlords are moving to 125 year terms, up from the previously common 99 years, and agreeing that the lease may not be cancelled by the landlord during the term.
The key features of this new form of lease are:
- 125 year term allows plenty of time for build out and still have 99 years left on the term when selling subleases; and
- non-cancellable lease provides an even greater level stability for mortgage-holders and subtenants by eliminating the need for non-disturbance agreements from the landlord.
Further, CMHC has approved for use with insured mortgages of leasehold interests on reserve for homes which are leased directly from the landlord (i.e. are not part of a larger development with a head lease and sublease structure).
If you would like to use the 125 year non-cancellable lease, you need to ask for it when negotiating your offer to lease. We can help.
Andrea East is a business lawyer at Pushor Mitchell LLP practicing in the area of First Nations Law. You can reach Andrea at 250-869-1245 if you would like assistance.
