In some of the holiday destination markets in Thailand, it is common for the foreign ownership quota to be filled. Due to demand from non-Thai nationals in these markets the developer will offer the rights to units outside of the foreign quota on a leasehold basis.
A 30 year lease period is legally protected under Thai law and ownership cannot be disrupted. It is common for developers to offer an additional two terms of 30 contractually obligating a total of 90 years.
Leasehold structures have to be examined on a case by case basis looking into the security. Prior to purchasing a leasehold property it is important to secure a copy of the lease agreement or get further clarity on these three points.
#1 - Who is the lessor? (an individual or a Thai Company) Securing a lease from a Thai Company offers much more security than a private individual.
#2 - Do I have voting rights as a Lessee? (Some lease contracts do not allow lessee to have voting rights)
#3 - Is there a succession clause in the lease agreement that will allow inheritance of the lease?
Work with your FazWaz sales consultant to ask these three questions to ensure your protection (long term) of leased property.