What a leasehold is
With a leasehold, you lease a plot of land, often together with a house, for a fixed period. You acquire the right to use the property, but you do not become the owner of the land. Many buyers say they have "bought" a villa. Legally, they have acquired a time-limited right of use. Keep this distinction clearly in mind from the start.
The key rules
- •Maximum 30 years: The Thai Civil and Commercial Code limits leases of land to 30 years.
- •Registration is mandatory: A lease of more than three years must be registered on the land title at the Land Department. Without registration, it is enforceable for three years only and does not bind a later buyer.
- •Sale of the land: A registered leasehold remains valid if the owner sells the land. The new owner is bound by the lease.
30+30+30 does not hold
For years, leaseholds were marketed as "90 years": three consecutive 30-year terms agreed in the contract from the outset. In Decision No. 4655/2566 of 18 March 2025, the Supreme Court confirmed that such pre-agreed renewals are void, even if they have already been paid for. Only the first 30 years are secure. A renewal must be newly agreed and registered at the end of the term, and the owner is not obliged to agree. If you already hold a 30+30+30 lease, have it reviewed and start negotiating with the owner well before it expires.
Further risks
Death of the lessee: Under Thai law, a lease generally ends on the death of the lessee. More recent case law (Decision No. 11058/2559) allows it to pass to the heirs, for example if the rent for the entire term was paid in advance or the contract clearly provides for it. This is not certain. A clear inheritance clause and a will are therefore essential.
Transfer and alterations: Unless the contract expressly provides otherwise, the lessee generally needs the lessor's consent to transfer the lease or to make structural alterations.
Mortgages: If the land was already mortgaged before your leasehold and the bank enforces the mortgage, your leasehold may be at risk. Have the title checked in advance.
Checklist for your lease
- •Registration with the Land Department for the full term
- •Check of the title for mortgages and other encumbrances, and the bank's consent where necessary
- •A clear inheritance clause, ideally with the rent for the full term paid in advance
- •The right to sublet and to transfer the lease to a buyer
- •An express right to renovate, demolish and rebuild
- •An obligation on the owner to co-sign building applications and permits
- •A superficies for the house, so that the building belongs to you
- •Provisions for the end of the term
- •Treat renewal as an option to negotiate, not as a guarantee
Who a leasehold suits
A leasehold is a sensible solution for many buyers, for example part-time residents or a retirement home with a manageable time horizon. Combined with a superficies, it is the proven standard solution for houses and villas. If you are looking for a stronger, transferable solution, ask your lawyer about a Sap Ing Sith as well.
Never sign a standard contract provided by the seller or developer without review. Such contracts primarily protect the owner. Have the contract reviewed by an independent lawyer before signing and before any payment.