Lease For Land Holding

[garyinthailand]

I'm getting ready to buy a townhome, and go the route of a 30-year extendable lease on the land it's on. (No kids).

Does anyone have experience with a lease of this kind, and how is it structured relative to the value of the land?

Is it typical for the leesee to pay the agreed value of the property up front, for example? Or are monthly, quarterly, or annual pro-rated installments typical?

In the case of extension after 30 years, what payment then?

thanks. new to this, obviously

[bangsaen bob]

I think the best thing is to use a Real Estate Lawyer. First of all you want to make sure you are leasing it from the owner, and there are no leans or other leases on it already. I'm sure the lawyer will have a standard lease.

You want to get a 30/30 year lease.

Good luck

[ProThaiExpat]

When I did this, I was shocked at how unsophiticated the lease was. The lawyer, and in Thailand they have undergraduate degree, explained that it is code law, not common law as in U.K or U.S., so much simpler.

While my lease is held by my love interest, I was concerned about what the Thai family would do, especially when I was really old and my Thai was deceased.

Thus I had the lawyer create the lease, he used original language, ( don't know is there is a standard one or not)

I also had him create a mortgage on the property in the amount of the purchase price of the land and house, (I gave ownership to both) receipt of the purchase money recited in the mortgage, and had the mortgage equate to the rent so in 30 years, when I am 97, the mortgage was paid off. The lease payments equaled the mortgage payments due, thus a wash.

Additionally, I had him put a penalty clause in the lease to the effect that if my "quiet enjoyment" was disturbed during the pendancy of the lease, a penalty of five million baht was payable.

Thus, "relatives" were faced with the 30 year lease, the penalty clause and a mortgage due on the propery to contend with if they wanted to evict me.

[LivinLOS]

You can also have clauses which state that it should be renewable 2 more times but this is not truly enforcable by law (it will depend on the intention of the leasee after the 30 years are up) but does assist in fixing a price for 3x30 years.

Also wise to add is the clause that if land ownership does ever become possible for farang or non thais that you have first purchase option at a fixed (low) price.