Leasehold/freehold?

[minefield]

I am shifting to Thailand in the new year so I have been looking at house prices etc.

I have seen houses for sale, ie; for 5 mil THB freehold............BUT......... They also say that it can be converted to leasehold for a Farang, If you were to go with the lease hold , DO YOU STILL PAY THE FREEHOLD PRICE EVEN THOUGH IT IS BEING CONVERTED TO LEASEHOLD AND YOU WILL NOT OWN THE LAND ?

If it converted to leashold who holds the lease???

[gotlost]

Same price and the original owner (Thai) holds the title.

[minefield]

Same price and the original owner (Thai) holds the title.

If thats the case and the thai is paid in full for the house land price he was asking how is the lease set?? ie; How is he, Or is able to charge for something he has allready been paid for??

Edited December 5, 2009 by minefield

[gotlost]

Same price and the original owner (Thai) holds the title.

If thats the case and the thai is paid in full for the house land price he was asking how is the lease set?? ie; How is he, Or is able to charge for something he has allready been paid for??

Lease is for 30 years and filed at land office. The lease cost is part of the total cost. If you lease for 30 years and you pay 5M baht for everything thats it. Technically you can sell your lease on.

[Bemused]

You could set up a company then grant yourself a lease. The downside of this is the remote possibility that the Thai government gets round to disolving companies with nominees then invalidates any transactions made by said company. In this case you lose everything. The upside is that you have complete freedom over granting new leases. If you wanted to sell on you could grant a new 30 lease year inorder to have something more valuable to sell on.

Bear in mind that investing in Thai property isn't a secure investment in the same way as investing in a country where porperty rights are more strongly protected by the law. However you buy, this is not going to be 'safe as houses'. You can get problems with leases or companies or condos - all different kinds of problems, but still problems nonetheless.

How you buy should depend on what your objectives are. If you want to make money out of the purchase as an investment then don't buy it as a lease. If you want to have somewhere to live, buy as a lease and accept the money has gone, or just rent. Alternatively, forget about Thailand and buy a comparably cheap investment in a country with better prospects for foreign investors.

Some people make money out of property in Thailand, most don't. Do yourself a favour and don't caught up with the dream.

[PattayaParent]

I've read that a lease usually costs 80% of the freehold value.

You hold the lease.

[minefield]

Same price and the original owner (Thai) holds the title.

If thats the case and the Thai is paid in full for the house land price he was asking how is the lease set?? IE; How is he, Or is able to charge for something he has already been paid for??

Lease is for 30 years and filed at land office. The lease cost is part of the total cost. If you lease for 30 years and you pay 5M baht for everything thats it. Technically you can sell your lease on.

So what you are saying is that, If I was to buy -lease for 5mil THB thats the lease paid for 30 years, I have read on a legal site that the lease's are structured by the Thai Govt for farangs that they 30x30x30 lease's and there is a clause in there that if at a later date the Thai govt wants to change the leasehold to free hold...........Possible wont happen in my life time

Technically at the end of 30 years and the Thai that you bought the property off has been paid in full, The renewal after 30 years are up it would be interested to know how the next 30 years lease payment is structured and do you have to pay as the original owner has been already been paid for the land and if you do have to pay who gets the money?

The more info I can find out the easy'er it will be to make my deceison on weather to take up a lease on a property when I arrive in Thailand as I personaly think that renting is a waste of money

Edited December 5, 2009 by minefield

[trogers]

Same price and the original owner (Thai) holds the title.

If thats the case and the thai is paid in full for the house land price he was asking how is the lease set?? ie; How is he, Or is able to charge for something he has allready been paid for??

I have read on a legal site that the lease's are structured by the Thai Govt for farangs that they 30x30x30 lease's and there is a clause in there that if at a later date the Thai govt wants to change the leasehold to free hold...........Possible wont happen in my life time

Sounds like OP is referring to using a nominee to own the land and then award him a 30-year lease, with a contractual obligation to extend the lease twice.

[PattayaParent]

There's no such thing as a 3X30 year lease

They are only valid for maximum 30 years and can nly be registered at the land office for 30 years.

[minefield]

I have read a lot of replys and the 30x30x30 lease seems dead even legal sites say the same, BUT and i say BUT

what if you were to get your legal co. to buy the property and you lease it off them????

you have just done away with the Thai that can come back at you after the 30 years lease has expired and you could tie it up with the legal co. so the lease is automatic,,,well almost

comments

you have to smile

Edited December 6, 2009 by minefield

[LennyW]

There was a thread a couple of months ago about a board member who had successfully registered two consecutive 30 year leases, i think it was Katabeachbum, the second one to commence on the day the first one expired. In Phuket i think.

I cant find the thread now, i remember Quicksilva commenting that this was not unheard of in Bangkok too.

[minefield]

There was a thread a couple of months ago about a board member who had successfully registered two consecutive 30 year leases, i think it was Katabeachbum, the second one to commence on the day the first one expired. In Phuket i think.

I cant find the thread now, i remember Quicksilva commenting that this was not unheard of in Bangkok too.

if you can think of the solicitor involved please PM me and let me know................thanks

[LennyW]

Found it, see here.....

http://www.thaivisa.com/forum/60-Years-Lea...&hl=leasing

[Bemused]

Just because the Land Office registers it means sweet FA. Under Thai Law (from memory I think it is the Land Code) staff at the Land Office are immune from prosecution for incorrect registration. Seriously, they can register anything and reguarly do without any worries. The registration of multiple lease period contradicts what Thai law says and would be overturned in a Thai court without more than a momentary deliberation.

[johnnyk]

Just because the Land Office registers it means sweet FA. Under Thai Law (from memory I think it is the Land Code) staff at the Land Office are immune from prosecution for incorrect registration. Seriously, they can register anything and reguarly do without any worries. The registration of multiple lease period contradicts what Thai law says and would be overturned in a Thai court without more than a momentary deliberation.

No worries indeed. An envelope will suffice.