Glossary · Ownership and rights
Leasehold
In short
The right to use a property for a fixed period under a lease. In Thailand a lease can run for up to 30 years and must be registered at the Land Office if it is longer than three.
What it means
A leaseholder does not own the property. They hold the right to use it for the term of the lease, in return for rent, which for a home is normally paid in full at the start. When the term ends, the property goes back to its owner.
How it works in Thailand
- The longest term the law allows is 30 years.
- A lease of more than three years must be registered on the title at the Land Office. A registered lease stays in force if the owner sells.
- Renewal clauses are promises by the owner, not registered rights, and Thai courts have refused to treat renewals agreed in advance as an extension of the 30 years.
- A lease is personal to the tenant unless the contract says otherwise. Selling it on, and what happens if the tenant dies, should be written into it.
Longer leases have been proposed several times. At the time of writing none of the proposals is law.
When it is used, and how to value it
Leases are used for the land under villas, and for condominium units where the foreign quota is full. A leasehold home costs less than the same home freehold because it is a right that runs out. Value it on the registered first term, and treat any renewal as something that may or may not happen.