Affordable Holiday Homes

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Each fractional ownership situation is unique, determined by the characteristics of the property and the people involved. Whether you call it fractional ownership, a property partnership, private residence club, or any of the other terms that apply, the key elements of fractional ownership are that the participants actually do own title to a share of the property, and that their use of the property is governed by specific time periods. One important factor is that they get to benefit from the appreciation in value of the property over time.
 
If you have ever considered purchasing a holiday home, you may have looked into timeshare or a destination club, but these arrangements usually amount to a membership rather than ownership. Fractional ownership entails holding a deed to your share of the property, whether paid in full or financed. Your interest in the property is tangible and personal. You have a say in how the property is managed through the fractional ownership agreement.
 
Owning your own part of a large, luxurious home in an impressive setting is much more affordable when you purchase only that portion of the property that corresponds to the use you want from the home. For example, you could buy a resort property for £500,000 and spend only your three-month summers there; or you could buy a 25% share of the same property for a corresponding price and still spend the same three months of the year there, while your partners occupy it during the other nine months of the year and share in the maintenance and expenses – a lot more value for your money!
 
Fractional ownership ensures that the people using the property have an interest in caring for it properly. It will be maintained by owners whose best interests are served by retaining and even improving upon the value of the property. A house that has lain cold and empty for long periods of time is not as pleasant a place to arrive at on your first day of your holiday than one that has had the constant attention of responsible partners who have only just left.