Freehold versus Leasehold

💒“Leasehold in Phuket provides short-term possession with lower initial costs, whereas freehold offers full, long-term ownership.”💥

 

Properties in Phuket offer condos, houses, and luxury villas but choosing between freehold and leasehold options can be confusing.

Land ownership in Phuket, Thailand is restricted for foreign nationals and the only legal way is "LEASEHOLD". We're here to help you understand the differences between buying a leasehold or freehold property in Phuket.

Join us on this journey to understand condo ownership in this tropical paradise and make informed decisions.

Table of Contents

What Does a Leasehold and Freehold Property Give You?

A leasehold property gives you the right to use and possess a property for a set period, typically 30 to 99 years. However, you don't own the property outright; it's owned by the freeholder (landowner). When your lease expires, ownership reverts to the freeholder, unless you negotiate an extension.  A flexible and affordable form of leasehold ownership. 

A freehold property offers you full and complete ownership rights over the property and the land it stands on. You own it for life and can pass it on to your heirs. Besides, freehold properties provide security and control making them an attractive choice for you seeking long-term stability in your real estate investments.

What is Freehold Property in Phuket?

When you buy a freehold property in Phuket, you have full ownership rights. This means you have complete control and indefinite ownership of both the property and the land it sits on. It means you can use, modify, and enjoy your property without the constraints of a lease.

As a freehold owner, you have complete control over your property in Phuket with no worries about lease expiration. Freehold ownership frees you from paying ground rent or service charges and leads to significant financial savings over time. Plus, owning the property outright means any increase in its value directly boosts your investment. It also secures a strong financial foothold in Phuket.

What is a Leasehold Property in Phuket?

A leasehold property in Phuket offers a flexible arrangement. This property ownership allows foreigners in Thailand to acquire property rights for a predetermined period, which can range from 30 to 99 years. As a lessee, you get to use and enjoy the property for the time you've agreed on. Most leases start with a set term but come with the option to renew. These renewals are usually in 30-year chunks as long as the property owner agrees. Think of it like a 30-year lease that you can potentially extend twice and reach up to 90 years. It's all about flexibility and making the most of your time in Phuket!

For instance, you lease a stunning beachfront villa in Phuket for 30 years to experience tropical living. When the lease period expires, property ownership returns to the owner unless you renew it. It safeguards your short term investment  according to Thai regulations.

Phuket Luxury Villa

Below are clear rights and benefits you can expect from a leasehold property:

• Extended Lease Period: If laws change, the lessor may extend your lease upon request.
• Building Freedom: You can build a house or make changes with the lessor's consent.
• Lease Flexibility: You have options to sub-lease, assign, or even sell your lease.
• Future Sale Rights: You might even have the right to sell the property outright.
• Lessor's Promises: Expect clear terms about lease renewals, what happens if they refuse to renew, and any penalties involved. It's all laid out for peace of mind.

Key Differences between Leasehold vs Freehold

Below, we present you with three key differences between buying a leasehold property and freehold property in Phuket. A simple comparison assisting you in making an informed decision.

Aspect	Leasehold Property	Freehold Property
Ownership Duration	Typically 30 to 99 years	Indefinite, for life and beyond
Rights During Lease	Temporary usage and enjoyment	Complete control and ownership
Usage Benefit	Short-term investments, temporary residency	Long-term stability, enduring investments

Thai Leasehold Laws

Land ownership in Thailand is restricted for foreigners, but leasehold offers a legal and accessible alternative. By Thai law, the maximum lease term is set at 30 years. While a lessor can agree in advance to two additional 30-year renewals, this doesn't automatically guarantee a 90-year lease. Instead, it provides the option to extend the lease for up to 90 years, contingent on the lessor's approval at each 30-year interval. Essentially, it's a 30-year lease with the potential for two renewals, leading to a total of 30 + 30 + 30 years.

Unlock Your Property Ownership with Us!

Are you ready to move forward in finding your Phuket property? Our guide clearly shows leasehold and freehold properties' benefits in the beautiful setting of Phuket. 

Whether you want the flexibility of a leasehold or the lasting security of a freehold, it's up to you to choose in Phuket. Don't just imagine a life filled with comfort and peace; make it happen. Step into an exciting world of Phuket real estate where the perfect property is waiting to become your own paradise.

Find Your Phuket Property Now!