Leasing Land For 31 Years, With Option To Renew?

[onlycw]

Hi All,

minimum of 1.5 Rai of beach front property on a popular island. What is acceptable to sellers these days?

Do some accept a payment plan? A stream of revenue might be attractive to some and I could avoid dead capital and or a mortgage.

Anyone with experience in land deals who cares to share terms or have advice and the odd red flag?

[PattayaParent]

If you do a search I think you'll find that the maximum legal lease is for 30 years and a renewal option is not valid.

[TigerWan]

Agree , though most legal firms and realtors wil tell you otherwise.

Thai law is 30 year max on lease when registered with Land Department.

If not registered, then 3 years is max contract period on property .

Seems to me a lot of these 30 year land leases will be expiring in the next decade, how can the " owner's" sell a lease that is expiring?

If they have 10 years left on the land , then that is all you can sell ( lease,) unless the owner agrees otherwise.

Seems a lot of expensive villas are sitting on land under this scheme and will be having the land yanked out from under them.

BEWARE

[stgrhe]

I suppose you are not just planning to lease a piece of land but also build a house on it. Many lease holders think they own their houses but in too many cases that is not so, because the house is part of the lease right.

Therefore, in addition to the land lease (max. 30 years as others have said) you had better also register a superficies. The superficies gives you the right (according to the law that is) to build a house on someone else's (the land owner's) land. Further, you should ensure that building permit is applied for in your own name, not the builder's or in the case of a development, the developer's.