Crown Property Sub-Lease

[ricklev]

A friend of mine is thinking of buying the remainder of a 30 year lease on a condo close to BTS Rajadamri (The Grand on Soi Mahadlek 2). I think there's fifteen years or so left. It was developed by Tanayong (now BTS Group). In any case, the agent told him he needs to bring in the money from outside Thailand and have an FET form or equivalent from his bank.

Is this true for a leasehold property?

Thanks.

[ricklev]

Another question he had was if he sells the leasehold at some point to buy another property, must transfer the money out of Thailand and then back into Thailand to pay for the new property?

I forgot to put in the first post that he works here and has a work permit.

Thanks again.

Edited March 1, 2013 by ricklev

[smutcakes]

I would advise him strongly to review if there is a renewal mechanism in the lease for when it expires.

I visited one of the leasehold apartments directly next to the BTS which were selling at circa 80-90 million baht. When I asked the agent what was the renewal mechanism on expiry, they said not to worry as the developer was good friends with the Land Owner. That did not convince me. Even if it just says 'at market value' it would be something- but absolutely nothing at all about renewal seems very open for abuse.

[ricklev]

Nobody yet knows what will happen when the Crown Property leases in the Rajadamri area expire. There is nothing clear about it. You have to assume there will be no renewal and base your purchasing decision on that.

[ricklev]

I did learn that no FET is needed for leasehold property.

[ricklev]

In any case, the lease is not with Crown Propery, BTS Group is the lessor (or another developer) and you are sub-leasing from that for profit company. They are under no requirement to do anything for the sub-lessors as far as I know. The only interest they have is maximizing their profit.

[smutcakes]

Nobody yet knows what will happen when the Crown Property leases in the Rajadamri area expire. There is nothing clear about it. You have to assume there will be no renewal and base your purchasing decision on that.

I believe the Four Seasons Lease expires very soon.

[Thereisnoif]

Leasehold = you own nothing . A fool's deal, even more so in a country like Thailand .