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Buying a property back home?
Buying a property overseas?
Buying a property in Thailand?
Foreigners needing property solutions in Thailand
need to come to Hamptons for lease purchases of up
to 30 years, for condos, houses, townhouses and land.
For more information contact Todd Guest on 02 655 6044
or todd@hamptons-mortgages.com to request an information pack.
Step on to the
Thai property ladder
T
Trying to get finance for
property in Thailand is tricky.
Todd Guest from Hamptons
guides you through an
innovative solution
he unravelling of the sub-prime credit crisis and
the recession we are now enduring will
undoubtedly shape the regulation that surrounds
credit. Not only for bank-to-bank lending and
investment gearing but also for personal lending
including mortgages, loans and credit cards. The
banks have become far more cautious in their
lending in an effort to boost confidence in the
sector. The reality, of course, is that banks have very
little liquidity. These factors mean that for the average
person, acquiring a mortgage is far less easy than it
used to be.
Expatriates wanting to buy property in Thailand
have historically faced even bigger hurdles, with few,
if any, banks willing or able to lend to 'farangs' and
with property transactions here frequently attended
by a whole host of legal difficulties. However, since
2005 Hamptons International Mortgages Thailand or
HIMT as it's often known has been offering a
property purchase solution to resident expatriates
in Thailand under a lease purchase scheme.
How does the Hamptons solution work?
Hamptons offer a LeasePurchase solution where by
Hamptons will pay up to 70% of a property’s value on
the client’s behalf, with the client obligated to pay the
balance plus initial transfer and transaction fees. The
property is then effectively owned by HIMT and leased
back to the client, with a right for the client to purchase
the property or the property's individual owning
company at the end of the lease period.To provide the
amount needed to be able to complete the purchase at
the end of the lease period, the Hamptons solution also
includes a monthly payment into a capital repayment
plan. The total amount payable every month basically
equates to the capital and interest payments on a
mortgage. Overall, this solution is not only cost-effective
but also very flexible; clients can increase the
contributions into the repayment plan, allowing them to
reduce the term of the LeasePurchase and exercise the
option to take ownership sooner than had been
planned. Alternatively clients can also reduce the
LeasePurchase term and/or the monthly LeasePurchase
payments by making additional lump sum payments
from time to time.
What are the criteria for application?
There is no minimum or maximum amount that HIMT
will contribute to the property purchase. Clients
have to produce evidence that they can support the
required payments into the repayment plan and the
lease payment. Other than that the specifications
are very flexible. Client income can be assessed not
only on employment income but also on income
from rental properties or investments. The repayment
term can be between 5 and 30 years, which is
entirely down to preference. Clients living in Thailand
have to produce a work permit but the package is
not restricted to clients residing in Thailand only. It
is available to all expatriates who wish to apply
and who need assistance in buying a property in
Thailand. The solution was recently under the
spotlight in Tropical Living magazine where an
independent legal adviser welcomed it as ‘a creative
financing option’.
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