FREEHOLD NEWS
The freehold program has now ended, until further notice. Any future offerings of freehold purchase are subject to demand. To register your interest in purchasing freehold, please fill out the form provided on the contact page.
BACKGROUND
Starting in late 2010, Mount Washington Ski Resort (MWSR) began determining the viability of converting existing sublease properties to freehold (fee simple) interest.
Prior to 2011, every MWSR property “owner” was in fact the holder of a long-term sub-lease, set to expire in 2078.* At its own expense, in 2010 MWSR investigated and determined the process of converting subleases to freehold.
In December 2010, the introductory round of freehold purchase began. Over 200 units were registered and fully a third of all units at Mount Washington converted to freehold ownership in Phase 1.
In the Fall 2011, a second freehold offering was put forward for consideration and another third of all units chose to purchase freehold. As of March 2012, the majority of properties (65%) at Mount Washington are now held by freehold ownership.
BENEFITS
There are many legal and financial benefits to purchasing freehold title to a property.
Legally, it is much more complicated to deal with the transfer of sub-leasehold property than with freehold. The majority of alpine resorts in British Columbia feature exclusively or predominantly freehold ownership. With this in mind, it is unlikely the process of transferring recreational subleaseholds will become any easier or more straightforward in the future.
Furthermore, many lending institutions are unwilling to finance leasehold interests as they steadily depreciate over time. Prospective or current subleaseholders may face difficulty in negotiating a loan or mortgage for their property from their bank or credit union.
On the other hand, those sub-leaseholders who convert to freehold are likely to realize a marked increase in their long-term property value. Over time, properties held by freehold title are likely to substantially increase in value relative to subleasehold properties.
In addition to simplifying financing and sales transactions, freehold unit holders enjoy the freedom and confidence that comes with knowing that they alone own their property.
Freehold ownership of future developments is necessary for the ongoing growth and sustainability of Mount Washington Ski Resort. Developers are far more inclined to build on freehold land than leasehold property, and any new real estate offerings by MWSR Ltd. will be solely on this basis.
In short, freehold ownership is a valuable asset, and is anticipated to further appreciate as MWSR Ltd. develops.
*Excepting Beaufort Heights, which has a second lease until 2177.
THE INFORMATION PRESENTED HERE DOES NOT CONSTITUTE AN OFFERING FOR SALE OF ANY LOT ON MOUNT WASHINGTON. An offering for sale can be made only by way of a Disclosure Statement prepared in accordance with the Real Estate Development Marketing Act and filed with the Superintendent of Real Estate.