30 Year Lease On House While Mortgage Is Being Paid

[chiangmaibruce]

3. In the case of an already husband and wife wanting to buy a house without a mortgage, I gather a usufruct still goes out the door, because it can be voided by either party if executed by a couple who is already married. But in an all cash purchase by a married couple with the property title held in the wife's name, then I'm assuming some kind of a rental or contract agreement could apply.

Two related queries here:

1. I am aware of the Civil Code provisions for husband/wife to set aside agreements. I am not aware however of any actual instances where a husband/wife has been able to have a usufruct voided ... have any Thaivisa users heard (first-hand) of this occurring?

2. If we proceed on the basis that a usufruct between husband and wife could be set aside ... could it be possible to purchase land in a two stage process whereby original land owner signs off on a usufruct to foreign husband/wife and then signs over ownership of land to Thai husband/wife? Has anyone heard of this happening? Have thoughts on its viability?

[stgrhe]

2. If we proceed on the basis that a usufruct between husband and wife could be set aside ... could it be possible to purchase land in a two stage process whereby original land owner signs off on a usufruct to foreign husband/wife and then signs over ownership of land to Thai husband/wife? Has anyone heard of this happening? Have thoughts on its viability?

I believe this process has been suggested by Isaan Lawyers.

[quiksilva]

The OP really should listen to Interested Observer's advice, he is 100% correct. The bank will never allow you to register a 30 year lease on a property that they have mortgaged.

If the lease is not registered then it will be unenforceable under Thai law. The best you can do is enforce a three year term, and before you ask, no, ten options to renew are not a good enough substitute for a registered lease of 30 years. If they foreclose on the mortgagee (your landlord) due to bankruptcy then they will not be under any obligation to renew your contract.

The three year solution with equal valued rental / mortgage payments suggested above is entirely dependant upon the contractual terms of unregistered three year lease agreements. All of which have unenforceable options to renew, you can agree to look at it, but the landlord is under no legal obligation to agree to renew.

Essentially you are at the mercy of the owner to renew your lease. That should be screaming at you: "Don't do it!"

Yes legally speaking it could be leased before the mortgage is taken out, but that assumes that the bank will agree to lend on a particular property with a registered lease in place, which is unlikely in the case of a single residence.

Edited August 16, 2010 by quiksilva