Any issues with demolishing a house that has loan finance attached?

[covidiot]

We are thinking of buying land that has an old house on it. We will put 20% deposit on the loan and borrow 80%. We will not be telling the bank that we plan to demolish the house.

We will obviously have to apply for a permit to demolish the house at the local amphur office. When they see a copy of the chanote with finance are they going to prevent this from happening? Surely they will not care about this?

Re the bank, once the purchase is settled they will probably never return to the house- unless we didnt pay the monthly payments. Therefore I dont think its an issue re demolishing it. We would the full amount ourselves for the new build. Therefore in the end the loan security is not compromised. Besides this its the land value in Thailand that holds up not the old house...

Any comments are appreciated.

[mikenot]

Are you getting a loan for the land, or house and land ? If it’s the latter then you cannot demolish the house. Just get a loan for the land only, the house would probably be almost worthless anyway.
You may not plan on telling the bank about your demolition plans but if this is in a rural area you may be surprised at how well the bamboo telegraph works ! And the Lands Office may well stop you anyway.