FAQ’s on Fractional Ownership
In our opinion, Fractional ownership is the progressive way of owning your own holiday home. It’s fairly new to the UK but is has been operating in the USA for over 30 years and many resorts in the European hot spots have been offering property under fractional ownership for the past 10 years. When you drill down to all the detail of holiday home ownership, it makes so much sense to consider this as the intelligent option of second home ownership.
We have named our form of fractional ownership "OwnerShare". Under this scheme, you can acquire part ownership in a luxury holiday home near a fabulous beach in Cornwall at a fraction of the whole ownership price. We find other co-owners who want to participate in the same way as you and we then put all the owners into a strong legal structure that gives everyone the rights and protection they need. Under this form of ownership, you can get all the benefits of a £250,000 or £500,000 valued luxury beach residence without having to find the full purchase price. In this day and age where "cash is king" you need only part with a fraction of your hard earned money to get the same high standards that you expect and deserve.
Is it not just another form of Timeshare?
Definitely not! Unlike timeshare, fractional ownership gives you a share of the title to the property. This is the fundamental difference as timeshare only grants you a period of time usage. Fractional ownership gives you a percentage share of the ownership within a property and a legal agreement sets up all the occupancy rules for you, controlled by a central management company.
What are the benefits of fractional ownership to me?
· You have extended use of a luxury holiday home for a fraction of the price you would normally pay.
· You have a share in an asset that may grow in value and that can be handed down to your children
· You do not have to pay all the year-round running costs of owning a full freehold property
· The buying costs are included in the purchase price
· Each property is fully furnished and equipped to high standards
· The property will be managed and maintained on your behalf and is fully serviced
How is the property divided up?
Under our "OwnerShare" structure, there are different percentage shares that can be arranged for each house. For example, we may choose to "fractionalise" one house into quarter shares where each of the 4 owners is entitled to 12 weeks occupancy per year. Alternatively, we may allocate one of our properties for 1/6th (8 weeks) or 1/8th shares (6 weeks) ownership. Depending on the size of the fraction, there is usually a 2, 3 or 4 week period reserved each year for maintenance.
Each owner has exclusive use of the property during their pre-determined occupancy periods. Each occupancy period (either weeks or months) is rotated forward each year so each owner is able to use the property during the most popular times.
Can I swap my allocation?
Yes, owners are free to swap allocations amongst themselves if they wish - you just need to inform the management company who is using the property and when.
What currency can I use to buy my OwnerShare?
The property transactions are carried out in the currency of the country in which you purchase.
Can I leave my OwnerShare to someone in my will?
Yes, the asset is yours to do with as you see fit (within the terms of the rules and regulations of the scheme) just as you would with a normal freehold property.
What fees will I encounter once I have purchased my OwnerShare?
If you purchase a quarter of the ownership you will have 25% of the community fees to pay, a yearly management fee and a contribution to the owner’s sinking fund. Utility bills will be itemised for each owner.
Do I have to know the other owners to buy?
It would be lovely if you can "pool" your own friends and family to share in the ownership and that may make an attractive proposition for all concerned. However, the developers and/or their agents are there to broker independent, like-minded people to take up the OwnerShare scheme.
Do I have to meet the other owners?
No, but in our experience co-owners like to get to know each other and often become friends due to their mutual interests.
What if other owners smoke or have pets?
There will be strict rules in place regarding these issues.
Who manages the property?
Your property will be looked after by an experienced management company; in effect, you can "lock-up and leave" the property after your visit with little or nothing else to worry about, taking back with you only the happy memories of a stress free vacation and no ongoing worries of 2nd home ownership when you get home.
Who can use my fraction once I have purchased it?
As with your own home, you are free to allow friends and family to use the property during your OwnerShare period.
Am I able to sell my fraction at any time?
Yes, however, you must first offer your share to your co-owners before it officially goes on the open market. Logically, your co-owners or their own friends/family may well be the perfect buyer for you. In any event, the management company will help you with the process and will appoint the appropriate agent. Naturally, there will be a sales administration fee and agents commission to pay.
What happens if something in the property gets broken?
Accidents do happen and the management company are there to replace any damaged or faulty items, using the money already held in the owner’s sinking fund.
Will the management company help me rent out my fraction when I am not using it?
Yes, there will be a full rental structure set up for those who want to pool any of their weeks which may well help recover some, if not all of the ownership costs. Some properties can rent for between £1,000 and £2,000 per week, depending on the size and location of the accommodation. (Our ¼ OwnerShare scheme in particular can offer some attractive returns for those who are looking for an ongoing managed rental income).
Currently available under OwnerShare :
Towan Valley, Porthtowan
We currently have a 3-bedroom luxury holiday home under a 1/6th (8 weeks occupancy)OwnerShare scheme for £50,000, fully furnished. The property is located within 5 minutes walk of the village, shops, restaurant/bars, cliff top walks and a well known surfing beach. The property is part of a quiet, gated community in a pretty valley, bordering onto open fields.
What next?
If you are interested in our OwnerShare scheme, please contact us
or call 01637 852825