Property Mortgage

[Esset]

My GFs father recently transferred some land (Chanote) with a house to her.

Can she borrow money from a bank using the land/house as collateral?

I remember reading somewere that you have to wait a certain time before you can sell/mortgage property, but I may remember wrong.

How much of the estimated value of the property would the bank be willing to lend?

I´m thankful for any input.

[mark5335]

Whether a bank would lend against the particular landed property would depend upon the location, purpose of the loan, your TGF's ability to repay the loan (her salary/business etc), and her credit record with the National Credit Bureau. If the property meets the banks collateral criteria, they might lend 60 - 70% of bank valuation.

[Esset]

Whether a bank would lend against the particular landed property would depend upon the location, purpose of the loan, your TGF's ability to repay the loan (her salary/business etc), and her credit record with the National Credit Bureau. If the property meets the banks collateral criteria, they might lend 60 - 70% of bank valuation.

Thank you for your excellent answer.

Does anyone know if you need to own the property for a certain time before the bank is willing to take it as collateral for a loan?

[nara80]

Form my experience, there are few categories is divided for ownership transfer such as purchase, give, mortgage and heritage.

In your case, I'm not sure how's your GFs father transfering to her (Give of heritage)

However, you could check on behind of Title Deed (Chanote).

If he gave to her, she could getting loan for the bank but he still have right to take it back if he want.

If he make it as heritage, he probably put granting permission period to purchase or mortgage, if not she could make whatever she want.

According to Department of Land website>> Click

see . Chapter 1. Application and investigation. Article 7

Edited October 21, 2010 by nara80

[Esset]

Form my experience, there are few categories is divided for ownership transfer such as purchase, give, mortgage and heritage.

In your case, I'm not sure how's your GFs father transfering to her (Give of heritage)

However, you could check on behind of Title Deed (Chanote).

If he gave to her, she could getting loan for the bank but he still have right to take it back if he want.

If he make it as heritage, he probably put granting permission period to purchase or mortgage, if not she could make whatever she want.

According to Department of Land website>> Click

see . Chapter 1. Application and investigation. Article 7

Thank you.

I will try to find out if the land was given to her or made as heritage (I´m not in Thailand at the moment).

If land was purchased, could there be any time limits on reselling or mortgaging it?

[nara80]

It's very simple and easy for land purchased because no time limits.

[Esset]

It's very simple and easy for land purchased because no time limits.

Excellent!

Thank you

[alfieconn]

It's very simple and easy for land purchased because no time limits.

Excellent!

Thank you

Beware of the banks high interest rates .

[CDNinKS]

Shop around to all the banks. My wife has just done this and all the banks had differant criteria. Some would lend 70% of the value and some 90%. There is a lot of competition going on right now and the banks are running all kinds of "promotions". They will ask you to pay for the assessment of the property, but I have been told by a Thai friend that can be negotiated as well.