Bought a condo with girlfriend, but how do I protect my deposit?

[London Boy]

So this is the situation, have been with my girlfriend for two years and were both sick of renting. We thought the current crisis was a good opportunity to snap up a bargain and we found a 94 sqm apaprtment (two bed, two bath) for ฿4,300,000 near Chong Nonsi. Decent price, they usually go for between ฿5.2-฿5.5. I've been looking at apartments in the block for around 6 months so I had a good gauge of prices.

My girlfriend actually works for a bank and has managed to get a ฿3 million mortgage and I'm supplying the ฿1.3 million mortgage from savings in the UK. So all good so far, but what I'd like to do is have some kind of covenant to protect my deposit if anything were to go wrong (heaven forbid). I'm going into all this with my eyes open, no pressure from the GF, but I want us to have our own place and not waste any more money on rent. And I belive this is the perfect time to get a condo at a bargain price. However having already been through a divorce, you can't be too careful. So if we ever split I want that deposit paid back to me. Does anyone have any experience of drawing up a legal document or something similar? Many thanks in advance.

 

[BritManToo]

Nothing you can do on a property with a bank loan.

It's all hers.

 

1M3Bht .......... how much per bang does that work out at?

How many years rent would 1M3bht cover?

How much of the repayments will you be paying, all? or 50%?

Edited June 2, 2020 by BritManToo

[ianezy0]

If the marriage goes of the rails....How many floors up is it?!

[PatchinExPat]

You better find a good trust worthy Thai lawyer now

later will be to late.

I don't know who that would be, maybe ask for lawyer 

recommendations rather than legal advice on here.

[bkk6060]

9 minutes ago, ianezy0 said:

If the marriage goes of the rails

They are not married it is his GF.

[EVENKEEL]

The old "look how much money we save by not renting" routine. Been there twice. 

[bkk6060]

You could go to a lawyer and have them draw up a document saying you are loaning her the money.

Possibly documenting that if the relationship goes bad, she is obligated to pay you back in some manner.

But, I fear it may be difficult to recover your money.

The loan is in her name she will own the place.

I personally would never do it, not even in my home country.  But good luck with the relationship and eventual outcome.

[steven100]

27 minutes ago, London Boy said:

I want that deposit paid back to me

your joking right ....  !    how the heck do you think you can secure your deposit .

you can't even do that in a civilized country let alone Thailand.

[DaLa]

I may have missed something , but why can't they have joint ownership?

 

https://www.samuiforsale.com/knowledge/practical-legal-for-condos.html

[London Boy]

2 minutes ago, steven100 said:

your joking right ....  !    how the heck do you think you can secure your deposit .

you can't even do that in a civilized country let alone Thailand.

Actually that's not quite true. I bought a house in New Zealand with my ex wife. We bought it in the name of a limited company and the company took a loan from me, and when we unfortunately divorced, the loan had to be paid back. Houses in Auckland are quite pricey and the deposit was $210,000 so it was well worth paying for the legal work before hand. However both the loan, title and limited company were in joint names, so slightly different scenario.

[NCC1701A]

35 minutes ago, London Boy said:

However having already been through a divorce, you can't be too careful. So if we ever split I want that deposit paid back to me.

yes during a divorce women are very open to suggestion. 

 

how is your girlfriend protecting her percentage of ownership? 

 

that should tell you all you need to know.  

 

 

[spidermike007]

3 minutes ago, DaLa said:

I may have missed something , but why can't they have joint ownership?

 

https://www.samuiforsale.com/knowledge/practical-legal-for-condos.html

That is a reasonable question. Condo law allows foreigners to hold title to the unit. Obviously she is signing for the loan, so she is likely to be on the title. The bank may insist on that. Also, some banks tend to cower away from loans, if they know foreigner is involved, for some reason. So. joint title might be tricky, in regard to the bank and the mortgage. For a cash deal, no issues. 

 

I could consult a good foreign property lawyer working here. Not a local. It will be expensive, but worth it. 

[jvs]

37 minutes ago, ianezy0 said:

.How many floors up is it?!

You mean how many floors down?lol.

[NCC1701A]

45 minutes ago, London Boy said:

So this is the situation,

for future reference, your post has too much red flag personal information for Thai Visa.

 

you are optimistic, have a real girlfriend with a good job, mentioned renting verses buying, and expressed a opinion on real estate values. 

 

 

[Skallywag]

Money spent in a foreign country is money gone is my philosophy

Enjoy life and kiss that 1.3 M baht goodbye.

Never discuss finances with a lady.

You give, they take is all you need to know to be happy ????

 

[spiekerjozef]

Maybe you should have thought about that before the purchase ?

[Skallywag]

53 minutes ago, London Boy said:

My girlfriend actually works for a bank and has managed to get a ฿3 million mortgage

If similar properties were 5 million plus, the bank could mortgage the whole 4.3

[Antonymous]

50 minutes ago, London Boy said:

My girlfriend actually works for a bank and has managed to get a ฿3 million mortgage and I'm supplying the ฿1.3 million mortgage from savings in the UK.

 

I think you meant that you are providing the cash deposit, right?

 

In the UK you can draw up a legal agreement on how to divide the proceeds of the property in the event that you split up at a later date. It would state how much each party would get if the property is sold and how to assess the amount if one party remains in the property. It would also state in what proportions the ongoing mortgage payments would be made. I did exactly this in the UK many moons ago and we did indeed split a few years later and all was hunky dory and there were no arguments. The house mortgage and ownership was in my name, not joint names.

 

I don't see why you can't do something similar in your case with your condo. I would advise at the very least that you discuss and agree all of the practical financial aspects and ramifications with your GF anyway. Having done that simply have it all typed up and signed and witnessed.

[bert bloggs]

12 minutes ago, Skallywag said:

Money spent in a foreign country is money gone is my philosophy

Enjoy life and kiss that 1.3 M baht goodbye.

Never discuss finances with a lady.

You give, they take is all you need to know to be happy ????

 

How sad to go through life feeling like you do ,by the way in your other post you say that the bank would lend the whole amount as the property is "undervalued" no they wont ,they will only loan according to her salary, my wife has been in the property business many years and her besty is a lawyer . also one of my friends ran an agency  . so i know a little about the work????

[London Boy]

39 minutes ago, NCC1701A said:

for future reference, your post has too much red flag personal information for Thai Visa.

 

you are optimistic, have a real girlfriend with a good job, mentioned renting verses buying, and expressed a opinion on real estate values. 

 

 

Thanks, that so true. I've been in Thailand just over 6 years and worked out I've spent £25,000 in rent (current exchange rate). Chances are I'll be here for another 6 years and dont want that figure to be 50k. Would much rather pay off our own mortgage. Although I don't expect any significant capital gain, the real value is selling of an assest when I'm ready to leave and (hopefully) getting my money back.

[stouricks]

8 minutes ago, London Boy said:

Thanks, that so true. I've been in Thailand just over 6 years and worked out I've spent £25,000 in rent (current exchange rate). Chances are I'll be here for another 6 years and dont want that figure to be 50k. Would much rather pay off our own mortgage. Although I don't expect any significant capital gain, the real value is selling of an assest when I'm ready to leave and (hopefully) getting my money back.

Paying interest to the bank is just the same a paying rent to an owner. DEAD.

You don't want to pay a further GBP 25,000 rent over 6 years = GBP 4170 per year = Bht 167,000 = ca THB 16,000 per month. What's the INTEREST on your THB 3M mortgage, plus the interest you are losing on you THB 1.3 M. Just asking.

 

Edited June 2, 2020 by stouricks

[PatOngo]

1 hour ago, London Boy said:

no pressure from the GF,

Why would there be? ????

[thaibeachlovers]

1 hour ago, London Boy said:

So if we ever split I want that deposit paid back to me. Does anyone have any experience of drawing up a legal document or something similar?

Time to do that was BEFORE shelling out the moolah. I just hope you don't have a joint bank account or tell her how much money you actually have.

[thaibeachlovers]

21 minutes ago, London Boy said:

Although I don't expect any significant capital gain, the real value is selling of an assest when I'm ready to leave and (hopefully) getting my money back.

Have you read any of the posts on TVF about how difficult it is to sell a condo?

[thaibeachlovers]

55 minutes ago, kenk24 said:

always have to amortize your sex life? 

 

 

Most men marry to have sex, so it's kind of important.

If we want a sexless marriage that is easily found in western countries. No need to move to LOS to be disappointed.

Edited June 2, 2020 by thaibeachlovers

[PatOngo]

1 hour ago, London Boy said:

but what I'd like to do is have some kind of covenant to protect my deposit if anything were to go wrong (heaven forbid).

Let Banksy sum it up!

 

[thaibeachlovers]

1 hour ago, Antonymous said:

I would advise at the very least that you discuss and agree all of the practical financial aspects and ramifications with your GF anyway. Having done that simply have it all typed up and signed and witnessed.

So, you are advising the OP to discuss what happens when the partnership fails. That's going to make her a happy girly, not.

[thaibeachlovers]

This thread is what an OP can expect if they come on TVF, a forum full of hard done by men that got screwed by the women they trusted.

Better to have just asked for a recommendation for a trustworthy lawyer, though that might be a hard task in LOS.

[petermik]

7 hours ago, London Boy said:

 Although I don't expect any significant capital gain, the real value is selling of an assest when I'm ready to leave and (hopefully) getting my money back.

You will find here the law(s) lean heavily towards a Thai person and are cumbersome and time consuming...I had a house built here 5 years cost (no pressure from her) 1.3 million baht....it was/is money I can afford to walk away from if needed (not as yet) you should apply the same principle....do NOT spend 1 baht more than you cannot afford to walk away from if needed.

Good luck with the relationship BTW....

[smutcakes]

Why dont you joint own the condo? A condo can be owned by more than one person, with both names on the title deeds. As long as you are in Thailand legally there is nothing to stop you buying a condo.

 

Make sure its a Condo (which is freehold) versus apartment which is leasehold.