In Thailand, the terms “leasehold” and “freehold” refer to different types of property ownership. Here are the key differences between leasehold and freehold in Thailand:
Leasehold:
- Definition: In Thai law, a leasehold is a long-term rental and personal right attached to the person. It is a right against another person for the performance of an obligation as a contracting party.
- Rights: The leasehold gives the holder a long-term tenant and the right of “use” on the property, but the rights are not ownership. The lessee, or long-term landlord, remains the owner.
- Duration: Leasehold in Thailand is usually for a period of 30 years, with the possibility of renewal for another 30 years[1][3].
- Cost: Leasehold properties are relatively cheaper since the land is arranged via lease, making them suitable for potential homeowners with budget constraints[2].
Freehold:
- Definition: Freehold is an ownership right and a real right attached to the property. It provides the owner with complete title to or control over the property.
- Rights: The freehold owner has full legal and undisputed rights to the property without any restrictions on its transfer, modifications, or construction. They take ownership of both the land and the home or standalone building or property.
- Cost: Buying a freehold property requires more capital due to significantly higher land prices, as the land is purchased on a freehold basis[2].
- Foreign Ownership: Foreigners may acquire land in Thailand through freehold ownership under certain limitations and provisions of the law[2].
In summary, leasehold properties are suitable for those with budget constraints, while freehold ownership provides more flexibility and clarity, albeit at a higher cost[1][2][3][5].
Citations:
[1] https://www.golawphuket.com/thai-real-estate/freehold-leasehold-rights/
[2] https://www.elitehomes.co.th/leasehold-vs-freehold-type-of-property-ownership-in-thailand/
[3] https://www.phuket.net/property/blog/difference-foreign-freehold-leasehold-thailand
[4] https://www.conradproperties.asia/blog-news/freehold-leasehold-property-ownership-thailand
[5] https://herorealtor.com/whats-the-difference-between-thai-freehold-and-leasehold-property-ownership/