Call for longer leases to boost home ownership

Three real estate associations have asked the next government to extend the lease period for residential properties from 30 years to 60 years, as a new generation of potential homebuyers can no longer afford to purchase them.

- KANANA KATHARANGSIPORN

Prasert Taedullayasatit, president of the Thai Condominium Association, said extending the leasehold period would enable tenants to obtain mortgages covering up to 100% of the property value, compared with the current 60-70%.

"For many people who cannot afford to buy a home, long-term leasing is a practical alternative," he said.

"However, most do not have sufficient savings to secure financing for long leases."

Mr Prasert said the current 30-year lease term, which typically can be renewed for another 30 years, does not qualify for mortgages as easily as a single 60-year lease. A 60-year lease offers security comparable to freehold ownership, he said.