housebuilding on a leased land

[josef53]

I have built a house on a leased land(for 30 years).

What happens when the owner of the land dies before the contract is ending?

Can the new owner of the land force me to leave the house?

[nattymatt]

I'm not 100% sure so might not be too helpful, but i don't think they can...

I think the contract stands ...

However if you agreed 2 more 30 year extensions I don't think they have to honor the extensions...

[bob4you]

I think you are correct, as more than 30 years is not allowed.

[johnnyk]

If the lease is registered at the Land Office and inscribed on the chanote then it must be honoured by the heirs and successors to the end of term. They are under no obligation to renew the lease. 30+30 years is a fiction devised to dupe gullible falangs, a second or third 30 years is NOT recognized by the Land Office whose opinion outweighs real estate agents, barstool lawyers and anyone else.

Edited October 29, 2013 by johnnyk

[Bpuumike]

Talk to Sebastian at www.isaanlawyers.com - not expensive

[Naam]

If the lease is registered at the Land Office and inscribed on the chanote then it must be honoured by the heirs and successors to the end of term. They are under no obligation to renew the lease. 30+30 years is a fiction devised to dupe gullible falangs, a second or third 30 years is NOT recognized by the Land Office whose opinion outweighs real estate agents, barstool lawyers and anyone else.

[mccw]

Just out of interest- what happens to the house under the farang name when the lease expires? I mean if its wood then they could move it but how about concrete and they don't remove it? Is there a time limit to remove buildings by or else they revert in ownership to the land owner or something?

[mccw]

What the lease holder dies?

[johnnyk]

When the lease expires and is not renewed the house owner is entitled to "fair" compensation. En principe, as the French say.

In reality the landowner could offer 500 baht for the building.

The choices then are

1) take it or leave it

2)spend time and money going to court (not fun if you are elderly and it was your home) to get some kind of judgement that may not be enforceable

3) walk away

4) knock it down and haul away the debris at your cost

By "lease holder" do you mean the one who is leasing (lessee) or the one giving the lease (lessor)? If the lessor dies his heir(s) are legally bound to honour the lease to term.

If the lessee dies I'm not sure, it may depend on how the lease contract is written.

Effectively, the house will be worth little to you as the landlord will know he holds the best cards.

Edited October 30, 2013 by johnnyk

[falang07]

build a house that can be moved... I am surprised no one has yet come with a good business plan in this ideal market for such a product

[falang07]

maybe something like in here: www.megeshelters.com

Edited October 31, 2013 by falang07

[falang07]

-- good video from Thailand

[simon43]

Effectively, the house will be worth little to you as the landlord will know he holds the best cards.

Yes .... and no.

The leasee also has some good cards to play because the landlord would much prefer to gain a nice house on his land, rather than a pile of rubble. So it may be possible to either negotiate a lease extension or some payment - albeit discounted - for the house

I lease land on which I build small hotels. The hotel business is mine, not the landlord's. At the end of the lease term, if the lease is not renewed, I can demolish the hotel buildings and move my hotel to a neighbouring plot of leased land and build new buildings, (cheap to build compared to the profit earned from them over the lease term)

Simon

[nattymatt]

What!!!

Are you serious.....

tell me more... have you had to demolish and rebuild yet?

what sort of lease are you getting... i mean time wise..

it surely cant be profitable to demolish and rebuild.....

[Langsuan Man]

What!!!

Are you serious.....

tell me more... have you had to demolish and rebuild yet?

what sort of lease are you getting... i mean time wise..

it surely cant be profitable to demolish and rebuild.....

If you can't recoup you investment in thirty years, you should not be in business

[simon43]

To date, I have never had to move the business, because the land leases that I get are typically 15 - 20 years. Build costs are no more than 4 million baht (these are 10-room hotels), and net profit is typically 2 million per year.

I did sell one hotel with only 9 years left on the lease and sold it for 8 million baht for a 5 million baht investrment...