Leasehold vs Freehold

When browsing villas and condos in Phuket, you will regularly see properties listed as either “freehold” or “leasehold.” Understanding the difference is essential to knowing exactly what you would be buying.

Freehold Ownership

Freehold (sometimes called “chanote ownership” when referring to land) means outright, permanent ownership of the property, transferable to heirs and sellable at any time without an expiry date. For foreign buyers, freehold is realistically available for condominium units, subject to the 49% foreign-ownership quota per building described elsewhere in this guide. Freehold condo ownership is registered directly in the buyer’s name at the Land Office and is generally considered the simplest, most secure route to property ownership in Thailand for a non-Thai national.

Leasehold Ownership

Leasehold is the standard route for foreigners buying villas and land-based property, since direct land ownership is not available to non-Thai individuals. A leasehold gives the buyer registered rights to use and occupy the property for a fixed term, commonly structured as an initial period with the possibility of renewal terms negotiated at the outset. Because a lease is a contractual right rather than outright ownership of land, the strength of a leasehold depends heavily on how the contract and any renewal terms are drafted and registered.

Key Points to Compare

• Security: Freehold offers indefinite ownership; leasehold offers a defined term with possible renewals.
• Registration: Both freehold transfers and long-term leases should be registered at the Land Office to be fully enforceable.
• Resale: Freehold units are typically easier to value and resell; leasehold resale value depends on the remaining term and renewal strength.
• Inheritance: Freehold passes to heirs like any owned asset; leasehold rights depend on the specific contract terms.

Neither structure is inherently right or wrong, it depends on the type of property you want and how you plan to use it. Speak with the Anan Property Group team about the specific ownership structure attached to any listing you are considering, and we will make sure you understand exactly what you are signing.