Lease Protaction/loan Issue.

[thai4u]

The wife and me are going to take a loan.

I have the 30 years lease.

The bank will probably ask for the "chanote" to be garentee.

The bank may refuse unless I take off the lease protection.

How and what can I do to protect the lease(my actual investment and ownership).

Can I add a contract and register it in the land office that the lease continue after the loan period finish?

Its very important for me to know what r my options and how am I suppose to act.

thanks in advance.

[thai4u]

some answer?opinion?proffesional? nothing?

[thai4u]

I want to understand,

-Is it so much unimportant question in the section of house,land and ownership?

I think its very important for usthe foreigner to know the answer for situation like this.

[wolfmanjack]

I want to understand,

-Is it so much unimportant question in the section of house,land and ownership?

I think its very important for usthe foreigner to know the answer for situation like this.

I am not sure why anyone has not answered. Maybe no one knows a good answer. I think it is a very good question and i will attempt to give you my opinion of what the situation would be.

I suppose you could make a new contract with your wife but it would have to be more than just a lease. Contracts are verified by placing stamps on the document and having them canceled at the post office. I doubt that you would be able to register it at the land office and the bank would not make a loan on encumbered land. So the contract would state that you would have a 3 year lease which does not have to be registered at the land office. Make the contract state that the 3 year lease is renewable every 3 years and that the event that the loan gets paid off that the lease reverts to a 30 year lease and must then be registered at the land office. That would be the best protection i can think of. It may or may not be legal under thai law. Now the problem is that while the Chanote is at the bank your wife could find a buyer. Take him to the bank, pay off the loan and transfer the chanote the same day before you have a chance to find out about it and register the lease. This would only leave the option of going to court after the fact. You would win providing the contract was legal under thai law but if she has hidden the money then the only thing that you would win was the satisfaction of sending her to jail. I believe they can still go to jail for indebtedness here in thailand.

I am told by my adviser that the one saving grace in this situation is that if she has a foreign last name the land office will require her to have her husband sign a document allowing her to sell the land or she would have to provide a document showing she is divorced. I do not know if this is true or not or if an under the table payment would get around it if it is true.

I hope this helps stir some discussion on the legalities of what you want to do.

[quiksilva]

I think your orginal posts were not very clear which is why you had limited responses, for instance more information is needed on what you are trying to accomplish.

Are you trying to secure financing for leasehold property in Thailand (if so dont hold your breath unless its on Crown Property Bureau Land)

If you are trying to take a lease on property that is being mortgaged by your wife then any new lease or other type of lien or encumbrance will have to approved by the creditor and as wolfmanjack mentioned this approval is highly unlikely to be forthcoming.

The 3 year renewable lease term structre suggested above might be doable, I think, but its extremely cumbersome but then again your options are very limited.

The trouble that springs to mind with with options to renew on 3 year terms is if the legalese used makes them too secure, the land department (or the court if it came down to a dispute) may view the succsesive options as a single unregistered lease term (> 3 years) and hence unenforceable (yes they can be that bloody minded). Which puts you in a catch 22.

[thai4u]

The situation is that the property registered already with 30 years lease contracr (in the land department of course all clear 100% ).

Now, we want to take a loan and then I afraid that to get the loan I will need to cancel my lease contract/protection/Ownership in the land office..something that I dont want to do.

Is my only option is 3 years renewable lease ?I dont want to as I dont want to deal with the lease sxxt every 3 years.

Also an option that I think and pls advice me if it helps or not.. to make this usufruct (or whatever it called)that actually make me the USER for a lifetime.

Is it helping or make things worst.?

I want to know the options because I KNOW...when it will be the time everybody(except my wife that absolutly understand) will tell me mai penlai..you merry already..its like this in thailand.....well NO(!)

If its so mai penlai and we merry so why I had all the headache when I bought the house with my money from the first place.. bla bla.. u know the story.. hehe.

ADVICE PLS

[wolfmanjack]

The situation is that the property registered already with 30 years lease contracr (in the land department of course all clear 100% ).

Now, we want to take a loan and then I afraid that to get the loan I will need to cancel my lease contract/protection/Ownership in the land office..something that I dont want to do.

Is my only option is 3 years renewable lease ?I dont want to as I dont want to deal with the lease sxxt every 3 years.

Also an option that I think and pls advice me if it helps or not.. to make this usufruct (or whatever it called)that actually make me the USER for a lifetime.

Is it helping or make things worst.?

I want to know the options because I KNOW...when it will be the time everybody(except my wife that absolutly understand) will tell me mai penlai..you merry already..its like this in thailand.....well NO(!)

If its so mai penlai and we merry so why I had all the headache when I bought the house with my money from the first place.. bla bla.. u know the story.. hehe.

ADVICE PLS

You have to understand what encumbering a title means. If you place a usufruct on the title that is worse than a lease. It gives you the right to use the land for the duration listed on the deed. Usually for life. Now put yourself in the banks shoes. Would you loan money on land that you can not kick the person off that borrowed the money from you if they defaulted on the loan ???

If you do not want to give the bank an unencumbered title then my guess is there will be no loan.

[quiksilva]

I concur.