Changing From 49% Company To 30 Year Lease

[Mobi]

I own my house through a 49 % company which bought the land. The company then built the house on the land. lets say Land cost 2m, house built for 10 m. Total: 12m.

I am worried about the legal staus of my 49 % company - have read extensively in this forum, and am somewhat concerned what my happen some time in the future. As I am knocking on 60, a thirty year lease will be fine for me as with my health problems I doubt I will make 80. I now realise I should have gone this route in the first place. So my company could sell to my wife, or indeed any respectable Thai national who would lease back to me for 30 years. Wife would be ideal, but not too sure about her at this point in time.

Can any of you experts out there advise what problems/ ramifications I will have, outside of the leagl fees involved. Is it a good idea, or am I worrying unecessarily? Thanks guys (and girls..)

[stevehaigh]

I own my house through a 49 % company which bought the land. The company then built the house on the land. lets say Land cost 2m, house built for 10 m. Total: 12m.

I am worried about the legal staus of my 49 % company - have read extensively in this forum, and am somewhat concerned what my happen some time in the future. As I am knocking on 60, a thirty year lease will be fine for me as with my health problems I doubt I will make 80. I now realise I should have gone this route in the first place. So my company could sell to my wife, or indeed any respectable Thai national who would lease back to me for 30 years. Wife would be ideal, but not too sure about her at this point in time.

Can any of you experts out there advise what problems/ ramifications I will have, outside of the leagl fees involved. Is it a good idea, or am I worrying unecessarily? Thanks guys (and girls..)

i think you should have no problems with a 30 year lease since it's pretty watertight in the eys of the law, even if things go wrong with your marriage.

you will have to pay 5.5% transfer fee on the government valuation of the land which may be 100,000 bhat! plus the leased registration fee so be sure you want to spend that before you do anything.

provided your company is obeying the laws on filing company reports and taxes, there's no reason to think you will run into trouble and if it ever becomes evident that the government is going on a farang hunt, you could do the transfer to thai/lease at that time.

steve

[GuestHouse]

I would look into the risks of closing your company before you make any decisions, see item #5 in this link Risks of Closing 51/49% Company

I think if I were you I would start by taking your company documents to a lawyer (Not the Lawyer who set the company up) and ask them to advise how you would go about closing your company and what the Liabilities are - Who gets what?

Do not make a move on this until you've settled that question.

Also, if it were me I'd be going to in BKK to be increase the chances of getting 'independent advice'.

[NotaNutter]

Stick with the Company Mobi, you can always change it to a lease later if necessary. What they gonna do? Confiscate the 1000's of properties owned by these Companies, that would hit tourism, investment, etc.. My guess is that the people in power would love to liberalise the property laws but they fear a backlash drummed-up by whoever is in opposition at the time. I think the status quo will remain as it suits everyone.

[GuestHouse]

Confiscate the 1000's of properties owned by these Companies, that would hit tourism, investment, etc.

No but agreeing an arbitary annual tax might be a possiblility

[johnnyk]

Stick with the Company Mobi, you can always change it to a lease later if necessary. What they gonna do? Confiscate the 1000's of properties owned by these Companies, that would hit tourism, investment, etc.. My guess is that the people in power would love to liberalise the property laws but they fear a backlash drummed-up by whoever is in opposition at the time. I think the status quo will remain as it suits everyone.

Good point..

I think most of us would agree that Thais, like many people, say one thing and do another. And of course, face is always a large issue (the elephant in the room).

My sense is one reason for the 49% law is so no Thai populist can get up and scream the country is being sold out from under poor Thais to rich falangs. But, naturally, there is money to be made (another chang in loom) so they have it both ways: keep face and make money through the 49% rule. Its working well enough so I don't think they will mess with it very much.

[Mobi]

Thanks for all the much appreciated advice guys. It has helped me put everyhting into perspective, and I have also learned some valuable facts.

Strangely enough, it was reading some other topics on this forum - especially from a certain female? lawyer - about how everything to do with farangs owning land through companies was full of holes, that put the wind up me a bit.

I think I'll sit tight for now, but its useful to know that I could switch to the lease option if the situation changes.

Once again thanks.

Mobi