Author: Donald Klip

Unlocked in Thailand: How to Use Kai Faak as a Foreign Property Owner in Thailand

Thai Land Department office where Kai Faak conditional sale transactions are registered for foreign property owners

Understanding what Kai Faak is represents the first step. Understanding how to actually structure, negotiate, and execute a Kai Faak transaction as a foreign property owner is where theory becomes practice. This article walks through the process from initial assessment to Land Department registration, building on the fundamentals covered in the first article of the Unlocked in Thailand series.

Global Mortgage Group assists foreign property owners in structuring and accessing Kai Faak arrangements in Thailand. Contact Donald Klip to start the process.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

Step One: Assess Your Property's Suitability

Not all Thai property is equally suitable for Kai Faak. The strongest candidates are freehold condominium units held in foreign names with a clean Chanote title, located in established markets with demonstrable liquidity, central Bangkok, prime Phuket, and well-known developments in other major centres. The cleaner the title, the more liquid the market, and the higher the asset quality, the more lenders will be interested and the better the terms you can negotiate. How your ownership structure affects borrowing power is worth understanding in detail before you approach any lender.

Leasehold property and Thai company-held property can be structured under Kai Faak in some circumstances, but the pool of willing lenders is smaller, the due diligence requirements are greater, and the terms will reflect the additional complexity. If your property falls into these categories, professional advice before approaching lenders is essential.

Step Two: Determine the Loan Amount and Terms

Kai Faak lenders typically advance 40-60% of assessed property value, though this varies by lender and property quality. Before approaching lenders, you should have a clear view of your property's current market value, ideally supported by a recent formal valuation or at minimum a realistic assessment based on comparable recent sales in your building or area.

You should also be clear about the term you need. Kai Faak is a short-term instrument, most arrangements run for 12 months, with some lenders offering up to 36 months for the right property and borrower. The term needs to align with your exit strategy: if you plan to repay from the sale of the property, the term needs to accommodate a realistic sale timeline. If you plan to refinance, the term needs to give you enough time to arrange replacement financing.

TERMS TO NEGOTIATE
In a Kai Faak, you have more negotiating power than you might expect. Key terms include: the advance amount (loan-to-value ratio), the monthly rate of return to the lender, the term length, extension provisions if you need more time, and the fee structure for arrangement and registration. Never accept the first terms offered without exploring alternatives.

Step Three: Engage a Thai Lawyer

A Kai Faak is a legal transaction registered at the Thai Land Department. Qualified Thai legal counsel is not optional, it is essential. Your lawyer will review the transaction terms, draft or review the conditional sale agreement, ensure your redemption rights are properly registered, advise you on the tax implications of the transaction, and represent you at the Land Department during registration.

Do not use the same lawyer as the lender. You need independent counsel whose sole obligation is to protect your interests. The cost of independent legal advice is modest relative to the value of the transaction and the risk of getting it wrong.

Step Four: Find the Right Lender

Kai Faak lenders range from private individuals, wealthy Thai nationals who deploy capital into property-backed transactions, to more structured private lending operations that operate semi-professionally in this market. The quality, reliability, and experience of lenders varies significantly.

Working with an established intermediary who has relationships with reputable Kai Faak lenders is strongly advisable, particularly for foreign owners who are less embedded in the Thai market and less able to assess lender quality independently. Global Mortgage Group has relationships with experienced Kai Faak lenders who have worked with foreign property owners, and can also compare a Kai Faak against a structured Thailand bridging loan if that route suits your situation better.

Step Five: The Land Department Registration

Once terms are agreed and documentation is prepared, the transaction is registered at the Thai Land Department. Both parties, or their authorised representatives, attend in person. The conditional sale is recorded, the title is transferred to the lender, and the seller's redemption right is registered. This process typically takes one day and requires payment of transfer fees and taxes.

The registration is the critical moment. Once complete, the lender holds the title and you hold the redemption right. From this point, your obligation is to exercise that right within the agreed period, by repaying the agreed buyback amount and completing the reverse transfer at the Land Department.

"The Land Department registration is both your protection and your commitment. Once registered, your redemption right is legally enforceable, but so is the lender's ownership if you fail to exercise it."
- Donald Klip, Global Mortgage Group

For guidance on structuring a Kai Faak transaction for your Thai property, contact Donald Klip at Global Mortgage Group. We work with experienced Thai legal partners and established lenders.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

Step Six: Managing the Term and Exercising Redemption

Once the Kai Faak is in place, your focus should be on managing toward redemption. This means monitoring your timeline carefully, maintaining communication with the lender if your plans change, and beginning the process of arranging repayment well before the deadline.

If your situation changes and you need more time, many Kai Faak lenders will agree to extend the term, but this is at their discretion and will typically involve additional cost. Extension terms should ideally be addressed in the original documentation rather than negotiated under pressure near the deadline.

When you are ready to exercise redemption, your lawyer initiates the reverse process: paying the agreed buyback amount to the lender and completing the reverse transfer at the Land Department. Once complete, the title returns to you and the Kai Faak is discharged. The process mirrors the original registration and typically takes a similar amount of time and cost.

Ready To Unlock Your Thai Property?

Global Mortgage Group specialises in cross-border property finance for foreign owners across Thailand.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

Unlocked in Thailand: Kai Faak vs. A Traditional Mortgage — Understanding the Difference

Kai Faak and conventional mortgages differ fundamentally in legal structure and risk. Understand which route makes sense for your Thai property.

For most property owners around the world, a mortgage is the default financial instrument for borrowing against real estate. In Thailand, that default does not apply to foreign owners. Understanding why, and how Kai Faak differs from conventional mortgage lending, is essential to making an informed decision about which route is right for you.

To compare your financing options as a foreign property owner in Thailand, contact Donald Klip at Global Mortgage Group.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

The Fundamental Legal Difference

A conventional mortgage is a security instrument. The borrower retains ownership of the property throughout the loan term. The lender holds a registered charge, a mortgage, over the property as security for the debt. If the borrower defaults, the lender must go through a legal process to enforce that security: initiating court proceedings, obtaining a judgment, and eventually forcing a sale through the courts. This process can take months or years, which is one reason mortgage rates are typically lower, the lender bears significant time and cost risk in a default scenario.

Kai Faak inverts this structure entirely. In a Kai Faak, the borrower transfers legal title to the lender at the outset. The lender becomes the registered owner of the property. The borrower holds a contractual and registered right to repurchase within the agreed period. If the borrower does not exercise that right, for any reason, the lender's ownership is absolute. There is no court process, no foreclosure, no period of grace. This fundamentally changes the risk profile for both parties.

Risk Profile: Borrower's Perspective

From the borrower's perspective, the risk in a Kai Faak is stark and must be clearly understood before entering the transaction. You are transferring title to your property. If you cannot exercise your redemption right, whether because you cannot repay, because you mismanage the timeline, or because circumstances change, you lose the property. Permanently.

In a conventional mortgage, a borrower who faces difficulty has options: restructuring, payment holidays, partial repayment, selling the property and clearing the mortgage, or going through a formal insolvency process that provides some degree of protection. In a Kai Faak, those options are significantly more limited. The transaction is contractual, the timeline is fixed, and the consequences of missing the redemption date are severe.

This does not mean Kai Faak is an inappropriate instrument. It means it must be approached with complete clarity about what you are doing and a robust plan for exercising your redemption right. Borrowers who use Kai Faak appropriately, with a clear exit strategy and realistic timeline, can access capital that would otherwise be completely unavailable to them.

CRITICAL POINT
In a Kai Faak, you transfer ownership of your property to the lender on day one. If you do not repurchase within the agreed period, you lose your property with no recourse. This must be fully understood before entering any Kai Faak arrangement. Always engage qualified Thai legal counsel before proceeding.

Risk Profile: Lender's Perspective

From the lender's perspective, Kai Faak is lower risk than a conventional mortgage. They already hold the title. In a default scenario, they retain a property they have already assessed as worth more than the amount they advanced. They do not bear enforcement risk, litigation cost, or timeline uncertainty.

This lower risk to the lender does not, however, translate into lower cost for the borrower. Kai Faak lenders are private individuals or non-institutional entities operating outside the regulated banking system. They set their own return requirements based on their capital, their risk appetite, and the specific property. Rates of 1-3% per month are typical, making Kai Faak significantly more expensive than conventional bank financing, when bank financing is available, which for foreign property owners in Thailand it is not.

Comparing Key Terms

Setting aside the fundamental legal difference, here is how Kai Faak and conventional mortgage lending compare across the dimensions that matter most to borrowers:

  • Availability to foreign nationals: Kai Faak is accessible to foreign owners of freehold condos. Conventional Thai bank mortgages are not available to foreign nationals.
  • Speed: Kai Faak can be structured and registered in two to four weeks. Bank mortgage processes, where available, take significantly longer.
  • Documentation: Kai Faak requires property title and basic identity documentation. Bank mortgages require income verification, credit assessment, and extensive financial documentation.
  • Cost: Kai Faak monthly rates of 1-3% are higher than bank mortgage rates. But the relevant comparison for foreign owners is not bank mortgages, it is the cost of not being able to access capital at all.
  • Term: Kai Faak terms of 6-36 months suit short-term capital needs. Bank mortgages offer longer terms suited to property acquisition rather than equity release.
  • Repayment structure: Kai Faak can be structured with the lender's return paid as a lump sum at redemption, meaning no monthly outflows during the term. Conventional mortgages require monthly repayments.

"For a foreign property owner in Thailand, the choice is rarely between Kai Faak and a bank mortgage. It is between Kai Faak and nothing. Understood in those terms, it becomes a very different conversation."
- Donald Klip, Global Mortgage Group

Global Mortgage Group can help you evaluate Kai Faak against other available financing options for your Thai property. Contact Donald Klip to discuss your specific situation.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

When Kai Faak Makes Sense

Kai Faak is most appropriate when you have a specific, time-limited capital need and a clear plan for repayment or property sale within a defined period. It is not a long-term financing solution. It is a short-term liquidity mechanism that allows you to access capital from a property asset you own outright, and that no conventional lender will touch.

Common use cases include bridging capital to fund a purchase elsewhere while you sell the Thai property, raising working capital for a business with a clear repayment timeline, accessing funds for renovation or development that will increase the property's value and support a later sale or refinancing, and releasing capital for personal needs where the alternative would be a forced sale at a suboptimal time.

What Kai Faak is not appropriate for is open-ended capital needs with no defined repayment plan, situations where the borrower cannot afford to risk losing the property, or cases where the property is the borrower's primary residence with no alternative accommodation available. For time-limited needs, a structured Thailand bridging loan may also be worth comparing against a Kai Faak arrangement.

Ready To Unlock Your Thai Property?

Global Mortgage Group specialises in cross-border property finance for foreign owners across Thailand.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

Unlocked in UK: Knightsbridge — Unlocking Equity in London’s Most International Postcode

Knightsbridge mansion block near Brompton Road representing prime London equity release for international owners

Knightsbridge has long functioned as a magnet for Gulf and Asian buyers, anchored by trophy addresses like One Hyde Park and the portered mansion blocks along Brompton Road and Sloane Street. It remains one of the most internationally owned pockets of London property anywhere in the city, and one of the areas where the gap between headline value and current market pricing is widest.

Speak to GMG about releasing equity from your UK property. Donald Klip, Co-Founder and CIO, Global Mortgage Group.

[email protected] | +65 9773 0273 | www.gmg.asia

Knightsbridge and neighbouring Belgravia currently sit around 29.5 percent below their 2014 peak, among the deepest discounts in prime central London. For owners who bought at or near that peak, this can look like a paper loss on a valuation report. In practice, for anyone not planning to sell in the near term, it is simply a very large asset whose current market value has become disconnected from both its replacement cost and its long-term trajectory, and a strong argument for accessing capital through borrowing rather than a sale at today's discounted pricing.

Who Owns Property Here, and Why That Matters for Financing

The buyer profile in Knightsbridge skews heavily towards Gulf Cooperation Council families, Asian investors from Hong Kong and Singapore, and a smaller cohort of European and Russian-heritage owners who established positions here over the past two decades. A large proportion of this ownership sits inside trusts, offshore companies or family investment vehicles rather than individual names, reflecting the succession planning priorities of the families who buy here.

"Knightsbridge is a market built almost entirely on cross-border ownership. Any lender operating here needs to be as comfortable underwriting a beneficial owner behind a BVI company as they are underwriting a UK-resident borrower with a standard payslip. That is the baseline expectation, not a special case."
- Donald Klip, Co-Founder and CIO, Global Mortgage Group

What Equity Release Looks Like in Practice Here

A typical scenario involves a family that purchased a Knightsbridge lateral apartment a decade or more ago, holds it debt-free or with a small legacy mortgage, and now wants to deploy capital into a new business venture, a second property elsewhere, or a private credit opportunity, without selling into a market still meaningfully below its historic peak. Structured equity release allows the family to borrow against the current, discounted, value of the property, while retaining full ownership and upside as the market recovers toward its pre-2014 levels.

Rental demand in the area remains a relevant factor even for owners not currently letting their property: Knightsbridge and the wider prime central London lettings market continue to see rents running well above pre-pandemic levels, supported by relocating executives and corporate tenants, which underpins valuations even where sale prices have softened.

Knightsbridge at a Glance

  • Prices around 29.5% below the 2014 peak, among the deepest discounts in prime central London
  • Dominated by GCC and Asian buyers, with heavy use of trusts and offshore holding structures
  • Ultra-prime stock includes One Hyde Park and mansion blocks around Brompton Road and Sloane Street
  • Strong rental market supports valuations even where capital values have softened

About Global Mortgage Group

Global Mortgage Group (GMG) is a Singapore-headquartered cross-border real estate finance firm operating across 23+ jurisdictions, specialising in equity release, bridging loans and structured property finance for international property owners. GMG works with private clients, family offices and their advisers to unlock capital held in prime residential real estate.

Donald Klip, Co-Founder and CIO

[email protected] | +65 9773 0273 | www.gmg.asia

Unlocked in UK: Mortgage Eligibility for Expats and Foreign Nationals in the UK

International buyer reviewing UK mortgage documents for a London property purchase as a foreign national

A recurring frustration among international buyers of UK property is discovering, often late in the process, that being an overseas national, an expat, or a foreign resident with no UK credit history dramatically narrows the pool of lenders willing to consider the application at all. This is not a reflection of the buyer's financial strength. Many of these buyers are cash-rich, high-earning professionals or established business owners, but UK mortgage underwriting is structured around domestic income verification.

Speak to GMG about releasing equity from your UK property. Donald Klip, Co-Founder and CIO, Global Mortgage Group.

[email protected] | +65 9773 0273 | www.gmg.asia

Mainstream UK mortgage lenders typically require PAYE payslips, UK tax returns, and a UK credit file built up over years. A Hong Kong-based executive earning in Hong Kong dollars, a Dubai-based entrepreneur with no UK tax history, or a Singaporean professional paid through an offshore employment structure will frequently fail this test on paperwork alone, regardless of the size of their income or their net worth.

What Specialist Expat Lenders Assess Instead

Specialist lenders in this space, America Mortgages among them, focused exclusively on US and international borrowers purchasing overseas property, build underwriting around foreign income documentation, overseas tax filings, and asset verification rather than a UK-specific credit history. This typically means accepting foreign currency income with appropriate stress-testing for exchange rate movement, recognising overseas tax returns as equivalent evidence of income stability, and assessing net worth and liquid assets alongside earned income rather than treating salary as the only relevant figure.

"The single biggest misconception we correct with international buyers is the assumption that no UK credit history means no UK mortgage. It simply means you need a lender whose entire underwriting model is built for exactly your situation, rather than one where your file is the exception nobody quite knows how to process."
- Donald Klip, Co-Founder and CIO, Global Mortgage Group

Deposit Requirements and Currency Considerations

Foreign national and expat buyers should generally expect to fund a larger deposit than a UK-resident borrower with a strong domestic credit file, often 25 to 35 percent of the purchase price rather than the 10 to 15 percent sometimes available to domestic buyers, reflecting the additional risk premium lenders attach to overseas income and enforcement. Currency exposure is the other major consideration: a buyer earning in US dollars, Gulf currencies pegged to the dollar, or Asian currencies needs to think through how sterling movements affect both the ongoing cost of a GBP-denominated mortgage and the eventual sale proceeds, particularly given how much prime London values have already moved against various currencies over the past decade.

Understanding how this compares with a structured equity release or bridging facility is often the difference between a workable plan and a stalled application.

What to Have Ready Before Applying

  • Two to three years of overseas tax returns or equivalent income documentation
  • Bank statements evidencing income and existing asset base, translated where necessary
  • A clear source of funds narrative for the deposit, particularly for funds moving across borders
  • An understanding of currency exposure on both the mortgage and the eventual exit

About Global Mortgage Group

Global Mortgage Group (GMG) is a Singapore-headquartered cross-border real estate finance firm operating across 23+ jurisdictions, specialising in equity release, bridging loans and structured property finance for international property owners. GMG works with private clients, family offices and their advisers to unlock capital held in prime residential real estate.

Donald Klip, Co-Founder and CIO

[email protected] | +65 9773 0273 | www.gmg.asia

Unlocked in Thailand: What Is Kai Faak? Thailand’s Hidden Equity Release Mechanism Explained

Thai land title deed and property documents representing the Kai Faak conditional sale lending mechanism

If you own property in Thailand and you have spoken to a local lawyer or a long-term Thai resident about financing options, there is a chance you have heard the term Kai Faak. It may have been mentioned in passing, with the caveat that it is complicated, or risky, or only for Thai people. None of those caveats are entirely accurate, and for foreign property owners who understand what Kai Faak actually is, it can represent one of the most accessible and practical routes to equity release available in Thailand.

To find out whether Kai Faak is suitable for your Thai property situation, speak to Donald Klip at Global Mortgage Group.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

The Literal Meaning

Kai Faak (ขายฝาก) translates directly from Thai as "sell and deposit" or "conditioned sale." In legal terms it is classified as a sale with right of redemption, known in Western legal traditions as a vente à réméré in French law or a sale with buyback in English commercial practice. The mechanics are straightforward: the property owner sells their property to a buyer at an agreed price, with a contractual right to buy it back within an agreed period at the same price plus an agreed return.

In practice, it functions as a secured loan. The "sale price" is the loan amount. The "buyback price" is the loan amount plus the lender's return. The property is the security. If the owner exercises their right of redemption within the agreed period, they pay the buyback price and the property is transferred back. If they do not, the buyer, the effective lender, retains ownership of the property outright.

Why Kai Faak Exists

Kai Faak has deep roots in Thai commercial culture and predates modern banking infrastructure in Thailand. It developed as a mechanism for land and property owners to access short-term capital without the formal requirements of bank lending: no credit assessment, no income documentation, no regulatory process. The transaction is recorded at the Land Department as a conditional sale, which gives it legal standing and protects both parties.

For centuries, Thai farmers, merchants, and property owners used Kai Faak to manage cash flow, fund harvests, bridge business transactions, and access capital when formal credit was unavailable. The mechanism survived the development of the formal banking sector because it serves a purpose that banks, with their requirements and processes, often cannot: fast, asset-backed liquidity with minimal documentation.

HOW KAI FAAK IS REGISTERED
A Kai Faak transaction is registered at the Thai Land Department as a conditional sale, not as a mortgage. The property title is transferred to the buyer or lender at the point of registration. The seller or borrower's right of redemption is also registered, giving them a legally protected right to buy back the property within the agreed period. Both parties have documented, enforceable rights from day one.

Kai Faak vs. A Conventional Mortgage

The key difference between Kai Faak and a conventional mortgage is the legal mechanism. In a mortgage, the borrower retains ownership of the property and the lender holds a charge over it. In a Kai Faak, the lender technically becomes the owner of the property, and the original owner holds a right to repurchase.

This distinction has significant practical consequences. For the lender, Kai Faak is fundamentally lower risk than a mortgage: in the event of default, they already hold the title and do not need to go through a foreclosure process. For the borrower, this means they must understand clearly that if they do not exercise their redemption right, either by repaying or by negotiating an extension, they will lose the property. There is no foreclosure process, no court order, no grace period. The property simply remains with the lender.

"Kai Faak is one of the oldest financial mechanisms in Thai culture. For foreign property owners, it is also one of the least understood, and potentially one of the most useful."
- Donald Klip, Global Mortgage Group

Global Mortgage Group can help structure Kai Faak arrangements for eligible foreign-owned Thai property. Contact Donald Klip to understand whether this mechanism is right for your situation.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

Typical Kai Faak Terms

Kai Faak transactions are privately negotiated, so terms vary considerably. However, some general parameters apply across the market:

  • Loan-to-value ratios of 40-60% of assessed property value are most common, though some lenders will go to 70% for premium assets
  • Terms of 6 months to 3 years, with the most common duration being 12 months
  • Monthly returns to the lender of 1-3%, equivalent to annual rates of 12-36%, reflecting the private and non-institutional nature of the lending
  • The return is typically structured as a lump sum paid at redemption rather than monthly repayments, making it a retained interest structure with no monthly cash outflow during the term
  • Fees for registration at the Land Department, legal documentation, and intermediary arrangement are payable at inception

Is Kai Faak Available to Foreign Property Owners?

Yes, with important caveats. Kai Faak is primarily used for freehold condominium units held in foreign names, as these have the clearest title and the most straightforward transfer mechanism at the Land Department. A Kai Faak on a foreign-owned freehold condo involves transferring the condo title to the lender, registering the redemption right, and documenting the buyback terms.

Leasehold property and Thai company-held property are more complex. Leasehold interests can in principle be transferred under a Kai Faak structure, but lenders are understandably cautious about taking a diminishing leasehold as effective collateral. Thai company-held property adds the additional layer of corporate transfer rather than direct title transfer, which requires more extensive documentation and legal support.

The practical reality is that the best candidates for Kai Faak are foreign-owned freehold condominiums in established Bangkok locations or prime Phuket developments, where the asset is liquid, the title is clean, and the lender has confidence in the underlying property value.

Ready To Unlock Your Thai Property?

Global Mortgage Group specialises in cross-border property finance for foreign owners across Thailand.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

Unlocked in Thailand: Thai Company Structures and Property — Can You Borrow Against It?

Thai limited company documents and land title deed representing company-held property structures in Thailand

Of all the ownership arrangements available to foreign property owners in Thailand, the Thai company structure is the most common, the most misunderstood, and the most complex to finance. Hundreds of thousands of foreigners hold Thai property through Thai limited companies, and most of them have never seriously considered what happens when they need to borrow against it.

If your Thai property is held through a company structure and you need financing, contact Donald Klip at Global Mortgage Group to explore your options.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

Why Thai Company Structures Exist

The Thai Land Code prohibits foreign nationals from owning land in Thailand. Condominium units can be held freehold under the Condominium Act, but land, and the villas, houses, and commercial buildings that sit on it, cannot. The Thai company structure emerged as a workaround: a foreigner establishes or acquires a Thai limited company, ensures that Thai nationals hold the majority of shares as required by law, and the company purchases the land in its own name.

The foreigner then controls the company through directorship, preference shares, or other mechanisms that give them effective authority over the asset despite not holding majority equity. This structure has been used across Thailand for decades, particularly in Phuket, Koh Samui, Pattaya, and Chiang Mai where land-based foreign ownership is most concentrated.

The Legal Grey Zone

Thai company structures for property ownership exist in an acknowledged legal grey zone. The intent of Thai law is clear: land in Thailand should be owned by Thai nationals. Using a company structure to give a foreigner effective control of land is, at minimum, contrary to the spirit of that law. Thai authorities have periodically tightened enforcement, investigated suspicious company structures, and in some cases unwound arrangements deemed to be nominee schemes.

This legal uncertainty has direct implications for financing. A lender considering security over a Thai company-held property is also considering the regulatory risk attached to that structure. If authorities were to challenge the company structure, the underlying asset, the land and property, could be at risk. Most institutional lenders will not accept this risk at any price.

LEGAL NOTE
This article provides general information only and does not constitute legal advice. If you own Thai property through a company structure, independent Thai legal advice from a qualified practitioner is essential before making any financing decisions.

Can You Borrow Against a Thai Company-Held Property?

The honest answer is: sometimes, in limited circumstances, through specialist lenders who are prepared to navigate the complexity. This is not the same as saying it is easy, common, or cheap.

Thai banks will not lend against company-held property where the beneficial owner is a foreign national. This is consistent with their general position on foreign property lending, compounded by the additional complexity of corporate ownership and the regulatory risk of the structure.

Private lenders and specialist non-bank financiers will consider Thai company-held property on a case-by-case basis. The factors they assess include the age and cleanliness of the company structure, the share register and nominee arrangements, the underlying land title quality, the property type and location, the loan-to-value ratio requested, and the borrower's overall financial profile and exit strategy.

LTV ratios offered against Thai company-held property are typically lower than those available against freehold condos, reflecting the additional risk. Interest rates are higher. Due diligence is more extensive and therefore more expensive. And the number of lenders willing to consider the structure at all is significantly smaller.

"A Thai company structure does not close the door on financing entirely. But it does mean a smaller door, a more rigorous process, and a lender who genuinely understands the Thai legal landscape."
- Donald Klip, Global Mortgage Group

Global Mortgage Group has experience navigating company structure financing in Thailand. Contact Donald Klip to discuss whether your specific structure can support a financing arrangement.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

What Lenders Want to See

If you are approaching a specialist lender about a Thai company-held property, the following documentation and structural clarity will significantly improve your prospects:

  • A clean company register showing properly structured Thai majority shareholding
  • Audited company accounts for the past two to three years
  • Clear documentation of directorship and control arrangements
  • The original land title (Chanote or equivalent) held in the company name
  • Evidence of the purchase history and source of funds used to acquire the property
  • A clear exit strategy for repayment, typically sale of the property or refinancing
  • Independent legal opinion on the structure from a qualified Thai lawyer

Alternatives Worth Considering

For owners of Thai company-held property who need liquidity but find financing difficult to arrange against the Thai asset, there are alternative approaches worth exploring. Cross-border equity release, using assets held outside Thailand as primary collateral, with the Thai property as additional supporting security, can sometimes provide a route to liquidity that does not require direct lending against the company structure. This approach depends on the borrower having sufficient offshore assets and a lender willing to assess the cross-border picture.

In some cases, restructuring the ownership arrangement, converting from a company structure to a leasehold, for example, or consolidating ownership in a cleaner legal vehicle, can improve financing prospects. This requires legal advice and should be approached carefully, but it is an option worth understanding.

The key point is that owning Thai property through a company structure does not mean financing is impossible. It means it requires specialist knowledge, specialist lenders, and a clear-eyed understanding of the complexity involved. Global Mortgage Group operates in this space and can help owners of company-held Thai property understand what is genuinely possible for their specific situation.

Ready To Unlock Your Thai Property?

Global Mortgage Group specialises in cross-border property finance for foreign owners across Thailand.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

Unlocked in UK: Trusts, SPVs and Offshore Companies — Financing UK Property Held Through a Structure

Prime London townhouse held through a trust or offshore company structure for UK property financing

A significant share of prime central London property is not owned in an individual's own name. Family trusts, British Virgin Islands and Jersey holding companies, and UK-registered special purpose vehicles are common ownership structures across Mayfair, Knightsbridge and Belgravia, particularly at the upper end of the market where succession planning, confidentiality and asset protection are as important to the owner as the property itself.

Speak to GMG about releasing equity from your UK property. Donald Klip, Co-Founder and CIO, Global Mortgage Group.

[email protected] | +65 9773 0273 | www.gmg.asia

These structures are entirely legitimate and, for many international families, the natural way to hold significant assets. The challenge arises when the owner wants to borrow against the property, because most UK high-street mortgage lenders are simply not set up to underwrite a loan where the legal owner on the title is a company rather than a person.

Why Mainstream Lenders Struggle With Structured Ownership

Conventional mortgage underwriting is built around an individual borrower: their income, their credit history, their personal guarantee. When the title-holder is a BVI company, a lender has to look through the corporate structure to the beneficial owner, assess that individual's global financial position, and be comfortable that the loan can be enforced against an asset held offshore. Many lenders' credit committees are simply not mandated to do this kind of underwriting, regardless of how strong the beneficial owner's balance sheet actually is.

"We see well-capitalised families turned away from perfectly good lenders for a structural reason that has nothing to do with their creditworthiness. The property is fine. The beneficial owner is fine. The lender just isn't built to look through a Jersey trust to get there. That is a solvable problem, but it requires a lender who treats it as routine rather than exceptional."
- Donald Klip, Co-Founder and CIO, Global Mortgage Group

What a Structured Facility Actually Requires

Financing a property held through a trust or offshore vehicle is entirely possible with the right lender, but it requires more documentation upfront than a standard mortgage: the trust deed or company constitutional documents, clarity on beneficial ownership, and often a personal guarantee or additional security from the underlying individual or family office. None of this is unusual to a cross-border specialist lender, it is the standard file for this segment of the market, but it does mean the process differs meaningfully from a conventional remortgage application.

GMG structures facilities, including bridging loans, against trust-held and corporately-held UK property across its jurisdictions on a regular basis, working directly with the family's existing trustees, lawyers and tax advisers rather than asking a family to unwind a structure that exists for good reason simply to fit a lender's process.

Documentation Typically Required for a Structured Facility

  • Trust deed or company constitutional documents and register of beneficial owners
  • Confirmation of the beneficial owner's source of wealth and source of funds
  • The beneficial owner's personal financial statement or family office consolidated position
  • Existing lender consents where the property already carries debt within the structure

About Global Mortgage Group

Global Mortgage Group (GMG) is a Singapore-headquartered cross-border real estate finance firm operating across 23+ jurisdictions, specialising in equity release, bridging loans and structured property finance for international property owners. GMG works with private clients, family offices and their advisers to unlock capital held in prime residential real estate.

Donald Klip, Co-Founder and CIO

[email protected] | +65 9773 0273 | www.gmg.asia

Unlocked in UK: The Non-Dom Exit and What It Means for Financing a UK Property

London super-prime townhouse representing non-dom sellers and buyers financing a property transition

Through 2025, London's super-prime market saw a distinctive shift. A wave of long-resident non-domiciled owners sold their principal UK residences, responding to the abolition of the remittance basis and the wider tax reforms affecting non-doms. Many of these sellers did not leave the London property market altogether. They retained a presence in the city, but at a lower price point, often acquiring smaller homes in the £7 million to £10 million range rather than the £15 million-plus properties they were exiting.

Speak to GMG about releasing equity from your UK property. Donald Klip, Co-Founder and CIO, Global Mortgage Group.

[email protected] | +65 9773 0273 | www.gmg.asia 

At the same time, a new generation of international buyers has stepped into the space these sellers vacated. This is not a market in retreat. Beauchamp Estates' annual survey of London transactions above £15 million describes 2025 as a year of resilient, selective activity at the very top of the market, with demand now focused on quality, convenience and long-term value rather than the tax planning considerations that shaped the previous decade of ownership.

Why This Shift Creates a Financing Need, Not Just a Transaction

Every non-dom exit sale creates at least two financing questions. The seller downsizing into a smaller London home often needs to bridge the gap between the sale of their existing property and the purchase of the new one, particularly when timelines do not align, or when part of the proceeds from the original sale are held offshore and take time to repatriate. The buyer stepping into the market, meanwhile, is frequently structuring their purchase through a trust, a family investment company or an offshore holding vehicle for reasons entirely separate from the old non-dom remittance rules, such as succession planning, asset protection, or simply the structure their family office already uses globally.

"The non-dom story gets told as a tax story, and it is one. But underneath it is a financing story that most people miss. Sellers need short-term bridging to manage the gap between transactions. Buyers need a lender who can underwrite a purchase held through a BVI company or a Jersey trust without treating that structure as a red flag rather than a normal feature of how international wealth is held."
- Donald Klip, Co-Founder and CIO, Global Mortgage Group

What Has Actually Changed for Financing Purposes

The end of the remittance basis and its replacement with a residence-based regime changes how and when UK-resident non-doms are taxed on foreign income and gains, but it does not, on its own, change UK mortgage lending criteria. What it has changed is buyer behaviour: shorter intended holding periods for some owners, more scrutiny of total cost of ownership including tax, and a greater willingness among family offices to hold UK property through structures optimised for the new regime rather than the old one.

For a lender, this means underwriting has to keep pace with structures that did not exist, or were rare, a decade ago. GMG's approach is to treat the ownership vehicle as a design choice to be understood and accommodated, not an obstacle, structuring bridging facilities against trusts, corporate holding structures and family investment companies as a matter of course, with underwriting built around the underlying beneficial owner's global financial position.

What Non-Dom Sellers and Buyers Should Check Before Financing

  • Whether sale proceeds are held onshore or offshore, and how quickly they can be repatriated or deployed
  • Whether the new purchase will be held in the same structure as the old property, or a different one
  • Whether existing lenders will finance a purchase through a trust or offshore company, or whether a specialist facility is needed
  • The realistic timeline gap between selling one property and completing on the next

About Global Mortgage Group

Global Mortgage Group (GMG) is a Singapore-headquartered cross-border real estate finance firm operating across 23+ jurisdictions, specialising in equity release, bridging loans and structured property finance for international property owners. GMG works with private clients, family offices and their advisers to unlock capital held in prime residential real estate.

Donald Klip, Co-Founder and CIO

[email protected] | +65 9773 0273 | www.gmg.asia

Unlocked in Thailand: Leasehold vs. Freehold in Thailand: How Your Ownership Structure Affects Your Borrowing Power

Comparison of a Bangkok freehold condominium and a Phuket leasehold villa representing Thailand property ownership structures

When foreign buyers purchase property in Thailand, the question of ownership structure is often treated as a legal formality, something to sort out with a lawyer and then file away. In reality, the structure you choose at the point of purchase has profound and lasting consequences for your ability to access finance later. It is one of the most important financial decisions a foreign property owner in Thailand will make, and most people do not realise it until they need to borrow.

To understand how your ownership structure affects your financing options in Thailand, speak to Donald Klip at Global Mortgage Group.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia

The Two Main Structures for Foreign Owners

Foreign nationals in Thailand generally hold property in one of two ways: freehold condominium ownership under the Condominium Act, or leasehold ownership of land-based property such as villas, houses, shophouses, and commercial buildings.

Freehold condo ownership means you hold outright title to your unit. The Chanote deed, the highest grade of Thai land title, is registered in your name at the Land Department. You can sell it, transfer it, mortgage it, and pass it on. Within the 49% foreign quota of any given building, this is genuine, clean, unencumbered ownership.

Leasehold ownership is fundamentally different. Under a leasehold arrangement, you do not own the land or the structure built on it. You own the right to use and occupy it for a defined period, typically 30 years, sometimes with contractual renewal options for one or two further 30-year terms. When the lease expires, the land and everything on it reverts to the landowner unless the lease is renewed.

Why Freehold Condos Are the Stronger Borrowing Basis

From a lender's perspective, freehold condominium ownership is the cleanest collateral available to a foreign property owner in Thailand. The title is clear, registered, and unambiguous. Ownership can be independently verified at the Land Department. The asset can, in principle, be sold to recover a lender's funds in the event of default.

This does not mean Thai banks will lend against freehold condos owned by foreigners, as we explored in the previous article, they will not. But it does mean that private lenders, non-bank financial institutions, and cross-border specialists are more willing to consider freehold condo security than leasehold. When structuring a bridging loan or equity release facility against Thai property, a freehold condo title is the starting point that most specialist lenders will work with.

KEY POINT
Freehold condo means a stronger borrowing basis. Leasehold means significantly more complex. The structure you hold determines not just whether you can borrow, but how much, at what cost, and through which channels.

The Leasehold Lending Problem

Leasehold security is challenging for lenders for several reasons that compound one another.

First, the diminishing nature of the asset. A 30-year lease started in 2010 now has fewer than 15 years remaining. A lender advancing funds today on a 5-year term is taking security against an asset that will have only 10 years left at maturity. The shorter the remaining lease, the lower the residual value, and the less comfort a lender can take from the collateral.

Second, enforceability. A lender who takes security over a leasehold interest needs to be confident they can enforce that security, step into the lease, sell the leasehold interest, or otherwise recover their funds, if the borrower defaults. In Thailand, leasehold enforcement by a non-resident lender involves legal complexity that not all private lenders are willing to navigate.

Third, renewal uncertainty. Many leasehold arrangements in Thailand include contractual rights of renewal for additional 30-year terms. But a contractual right is not the same as a guaranteed right. Disputes over lease renewal are not uncommon in Thailand, and a lender taking security over a leasehold property needs to assess the renewal risk as part of its credit analysis. Properties with short remaining terms and uncertain renewal positions are very difficult to finance.

Thai Company Structures: A Third Category

Some foreign property owners, particularly those who acquired land-based property before leasehold structures became standard, or those who wanted to own land outright rather than lease it, hold their Thai property through a Thai limited company. In this structure, the foreign national owns shares in a Thai company, and the Thai company holds the land title.

Thai company structures occupy an uncomfortable legal position. They are widespread and have been tolerated by authorities for decades, but they sit in a grey zone: the intent of Thai law is that land should be owned by Thai nationals, and using a company structure to circumvent this is technically a violation of the spirit if not always the letter of the law. Regulatory attitudes toward this structure have tightened and relaxed at various points over the years, creating uncertainty for owners.

From a financing perspective, Thai company structures are the most complex of the three categories. A lender taking security over a Thai company-held property is effectively lending against a corporate entity whose shares happen to be collateralised by real estate. The legal due diligence required is extensive, the enforcement path in a default scenario is more complicated, and many specialist lenders will not consider this structure at all.

"Your ownership structure is not just a legal detail. It is the single most important factor in determining whether you can access the equity in your Thai property, and if so, how."
- Donald Klip, Global Mortgage Group

Global Mortgage Group works with all three ownership structures. If you are unsure what options your Thai property holding opens up, contact Donald Klip to discuss.

What This Means for Borrowing Strategy

If you own a freehold condo in Thailand and want to access equity, you are in the best position available to a foreign owner. You have the cleanest title, the strongest collateral, and the widest range of lenders who will at least consider your application.

If you own a leasehold property, you need to understand the remaining term, the renewal provisions, and how different lenders view those factors before approaching anyone for finance. A leasehold with 25 years remaining and a documented renewal clause in a reputable development is a very different proposition to a leasehold with 8 years remaining and no renewal documentation.

If you own through a Thai company, specialist legal and financial advice is essential before approaching any lender. The company structure, the shareholder arrangements, the land title, and the regulatory history of the property all need to be clearly understood before a financing conversation can meaningfully begin.

In all cases, the starting point is the same: understand what you own, understand what it means for your financing options, and then engage with lenders who actually work in this space. Global Mortgage Group operates across all three structures and can help you map what is possible for your specific situation.

Ready To Unlock Your Thai Property?

Global Mortgage Group specialises in cross-border property finance for foreign owners across Thailand.

Donald Klip | [email protected] | +65 9773-0273 | gmg.asia