Lease/Usufruct and Mortgage

[Galee]

I'm reading conflicting reports about Banks not lending money if a lease/usufruct exists on the Chanote.
I don't want to use the majority of money I have building a property. I'd prefer to get a mortgage in the wife's name with me as the guarantor, as a kind of "bridging loan", until my final salary pension kicks in.
Has anyone had any experiences of having problems obtaining a loan for a property build if their name is on the chanote.

[dozer]

I believe it would be impossible as the value of the property with a 30 year lease on it is greatly reduced, so the bank would have no motivation to loan money on it. It is possible to register both a lease and a mortgage on the property but is normally done by the same person for asset protection reasons, ie. don't believe a 3rd party would lend on a property which a 30 year lease existed.

[BKKBILL]

Unless your wife can prove she has good cash flow and regular moneys coming in not just now but for an extended period of time I think it would be quite difficult to get any mortgage. A farang being the guarantor would probably help if you have been living here for a number of years. An Dozer said a lease/usufruct doesn’t really cut.

[Galee]

Thanks for the replies. Yes, wife has own small business, but not sure the income would guarantee the size mortgage I was thinking off. Was hoping her assets of rubber trees and land we have just purchased would help along with me a guarantor. I think a meeting with her bank manager is going to be required before I think about lease/usufruct.

[geordie]

[thaifly]

gidday galee its the thai fly from mae rim...cobber you are pissing into a hurricane on this .. its a gunners gidday to all ...its the thai fly from mae rim

[jazzman]

I can only speak from experience from people I know locally, but banks will generally not accept foreign husband's /boyfriend's assets abroad, or money that a husband/boyfriend regulary gives his partner, as collateral. The Thai contender for the mortgage should hold financial assets and/or land/property to a value of the required mortgage,and such holdings should not be compromised, as mentioned by a previous poster, by lease or usufruct to a third party.

Regular readers of this board will know that my personal view is that because the costs of houses and land are so low compared to western countries, anyone considering a loan to develop his/her own property in Thailand should also take into consideration the other additional costs of expat life here. IMHO a modest project of up to, for example, 5 mio baht, should preferably be within one's grasp from readily available savings, or from the sale of a house abroad.