What is a Leasehold Property in Phuket?

Leasehold property in Phuket means you can use a place for a certain time. You make a deal with the owner to rent it for, say, 30 to 90 years. It’s perfect for foreigners who are planning to settle down. It’s flexible. You can use it for a while, then it goes back to the owner.

Let’s talk about leasehold property in Phuket and whether it’s the right choice for you!

What is a leasehold property in Phuket?

A leasehold property is one you don’t own outright but have the right to use for a set time. You agree with the owner, called a lease, which specifies how long you can use the property. It’s common in places like Thailand, where foreigners might want to live or invest in real estate without buying it outright. Typically, leasehold property in Phuketdurations can range from 30 to 90 years, depending on the terms of the lease agreement. After the lease expires, the property usually goes back to the owner.

Types of Leasehold Property in Phuket for Foreigners

Foreigners in Thailand can lease different types of properties. They can’t own land but can lease it for up to 30 years. It’s important to check the rules and get legal advice before leasing any property. Here are some properties foreigners can get:

1. They can buy leasehold condos but must follow rules in the Condominium Act.

2. Some developers let foreigners lease villas or houses, mainly in resort areas or gated communities.

3. Foreigners can lease shops, offices, or warehouses for business.

4. They can’t own land but can lease it for homes or businesses. Usually, leases last 30 years with renewal options.

Leasehold vs. Freehold in Thailand

Leasehold properties for Foreigners is different from freehold properties, which are more common in Thailand. With a freehold property, you own it completely and forever. This includes the land it’s built on. Simply put, freehold ownership means you own everything. Even if you have a mortgage and make monthly payments, once it’s paid off, you don’t owe anything more for the property or land.

In Thailand, most properties for sale are freehold. But in certain places like cities or popular tourist areas, there is leasehold property out in the market. This is because land can be limited or expensive in these areas. Leasehold properties are often found in developed areas, not rural ones with lots of space.

Is Leasing Property in Thailand Safer?

Leasehold property in Thailand can be safe, but there are things to consider:

• A 30-year lease is protected by Thai law, but renewing it for another 30 years can be hard, especially if the owner is a person. 

• To avoid problems, developers often use Thai companies. This makes it easier to renew leases. It’s good to involve a Thai company when leasing. 

Why is a Leasehold Property Cheaper?

Leasehold property in Thailand is often cheaper than freehold because you don’t own the land outright. With leasehold, you’re essentially renting the land for a set period, usually 30 to 90 years, whereas freehold means you own the land and the property on it indefinitely. Since leasehold property has a limited term of ownership, their prices can be lower compared to freehold properties. Plus, the law restricts land ownership for foreigners in Thailand making leasehold properties more affordable. So, if you’re considering investing in Thailand, leasehold property might be a good option for you.

How to Buy and Sell a Leasehold Property in Thailand?

Buying and selling a leasehold property in Thailand is pretty simple. Here’s how it goes:

Getting a New Leasehold Property

If you’re buying a new property from a developer, you’ll get the lease directly. Sometimes, you can sign a new lease for more years. To seal the deal, the land owner, lease seller, and buyer need to meet at the land office.

Taking Over an Existing Lease

If you’re taking over someone else’s lease, only you and the seller need to go to the land office. But remember, you’ll only have the property for the rest of the lease period. The price is decided based on this.

Start Renting With Leasehold Property

A leasehold bought from ourvillas is like renting something, such as a building or a unit in one. You make a deal with the owner or landlord to use it for a while, and you pay them regularly during that time. Commercial leasehold is for running a business like a store or doctor’s office, while residential leasehold is for living in a place.

Frequently Asked Questions