The benefits of leasing

Clover Creek is located on the Skowkale Indian Reserve in Chilliwack, BC. The proposed project received the approval of the Band Council and no further approvals are required from the band, and the band is not a party to the head lease or subleases.

Clover Creek II Limited Partnership, the developer, has entered into a head lease from “Her Majesty the Queen in Right of Canada”, in other words the Federal Government of Canada. This lease expires in the year 2092. The lease payments for the head lease have been prepaid for the full term. It is important to note that the only parties to the head lease are the Federal Government of Canada and Clover Creek II Limited Partnership.

While the developer has prepaid the head lease, homeowners will be given a choice of either prepaying their sublease, or paying approximately $290 per month (including the geo-thermal payment). The monthly rent will increase annually in accordance with the Consumer Price Index. As an example, if the Consumer Price Index increases by 2%, your lease payment will increase by only $3.90 per month. In the event a homeowner elects not to prepay, they will be fully protected from arbitrary lease increases for the full term. Neither the developer, the Band, nor the Federal Government will have any ability to change the terms of the lease without the consent of the homeowner.

Leasing Frequently Asked Questions

Can a Homeowner prepay their sub-lease?
Yes. You will be offered the choice of making a monthly lease payment, indexed to the Consumer Price Index, or prepaying the entire lease payment at the closing. If you elect to prepay, no further lease payments will be due for the entire term, except for contributions to the common area costs. If you elect to prepay a portion of the land lease, your lease payment will be reduced proportionately.

What other communities are under a lease arrangement?
Land leases are common in many parts of Canada, Florida, Europe, and southwest U.S.A. Many of the new homes being built at the University of British Columbia are on land leased from the University. The Burrard Indian Band in North Vancouver, and the Westbank First Nation have successfully developed many housing projects on band land. Promontory Lake Estates, a 15-year old project, as well has Halcyon Meadows on the Tzeachten Reserve, are two of Chilliwack’s most popular retirement housing communities. Homes in Halcyon Meadows, a project developed by Van Maren, have increased in value by over 80% in the past 3.5 years.

What about re-sale value?
Homes in Halcyon Meadows, a previous leased-land community completed by Van Maren, have been re-selling without difficulty at prices significantly higher than what they originally sold for.

What are the benefits of leasing?
Leasing is an alternative to putting all your money (equity) into your home. Because you are not paying for the land, you’ll have this money available for investment or to spend on other things you might enjoy. If you choose to invest the money you would otherwise spend on acquiring the land, even a very low 4% return on this investment will generate enough income to make your monthly lease payment. Or you may decide to purchase a motor home with the money you save by leasing. The choices are endless, and they are yours to make.

Who provides services to Clover Creek?
Utility service providers include BC Hydro, TELUS and Shaw Cable. Water, sewer, police, Fire, Ambulance and other services are provided by the City of Chilliwack, just as they would be for any other development in Chilliwack.

Will financial institutions provide financing for Clover Creek homes?
Yes, several financial institutions will provide financing to qualified home buyers.

Will I be able to get legal advice before committing to the purchase of a home at Clover Creek?
Yes, any offer to purchase a home at Clover Creek will be subject to your lawyer reviewing and being satisfied with all the legal agreements.

Disclaimer: In the event of any conflict between this information and the head lease or sublease, the head lease or sublease shall govern