Investing in Chiang Mai Real Estate via Long-Term Leasehold — Is It Viable and How Worthwhile Is It?

Investing in Chiang Mai Real Estate via Long-Term Leasehold — Is It Viable and How Worthwhile Is It?

Leasehold is one of the main options foreigners use to hold property in Thailand when Freehold purchase is not possible. This article analyzes honestly whether it is worthwhile.

What Is Leasehold?

A long-term lease registered at the Land Department — maximum 30 years per Thai law. Some contracts include renewal provisions for another 30 years (30+30 years total). The lessee has full use rights throughout the lease term but does not hold title ownership.

Leasehold Advantages

Access to property foreigners cannot buy Freehold: Houses, villas, land intended for long-term use
Lower price than Freehold: Leasehold typically 20-40% below equivalent Freehold property
Full use rights: Can use the property exactly as an owner throughout the lease term

Key Disadvantages and Risks

1. Not actual title ownership: When the lease expires, the property reverts to the landowner — no guarantee of renewal
2. Renewal concern: 30+30 year private contract clauses may not be legally enforceable, as Thai law only recognizes 30 years maximum per registration
3. Value decreases over time: The shorter the remaining lease, the lower the Leasehold value
4. Harder to resell than Freehold: Buyers don't want short-remaining leases
5. Mortgage extremely difficult: Most Thai banks will not accept Leasehold as collateral

For Investors Focused on Long-Term Returns

We recommend Freehold Condo over Leasehold because an asset always remains at the end. For any Leasehold purchase, always consult an independent lawyer before signing.

MORE Value. MORE Trust. Always.
Contact us today for a free consultation:
Line: @morecm | www.morepropertycm.co.th
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