Property
Looking for a place in the sun? Fractional ownership is the new timeshare, and you’ll only need a quarter of your wallet
Spanish homes at a
fraction of the cost – literally
FRACTIONAL OWNERSHIP IS TAKING OFF. IT’S LIKE TIMESHARE BUT YOU OWN THE PROPERTY, SAYS BRYN THOMPSON
OWNING A LUXURIOUS second home abroad in a warm climate has become a reality for relatively few people, but remains an unfulfilled dream for many. That is about to change.
“Fractional ownership” is the latest way to own a home in the sun, and it means exactly what it says: shared freehold ownership in a property. It is the fastest-growing segment of the property market in the USA, and is now catching on at a fast pace in Europe, especially in Spain and Portugal.
Many people assume it is another form of timeshare, but it is fundamentally different in that users actually own a stake in the property, and benefit from capital growth as the property increases in value.
Fractional ownership as a concept has been around for many years, most notably in the purchase of planes and yachts, and has now spread to property. It was initially slow to take off as buyers previously had to pay cash to own their fraction, but now it’s possible to get a mortgage to finance or part-finance the purchase.
Most fractions are divided into quarter-shares allowing owners the option of 13 weeks’ usage per year, in a home that would normally cost them four times as much. Weeks are rotated each year to ensure that, over four years, all owners get an equal allocation of weeks.
Fancy living here for 13 weeks
a year?
Owners can use their apartment or villa in any of their allocated weeks or rent it out to cover mortgage and running costs, which are shared by the four owners.
For people who only get a few weeks’ holiday a year or cannot justify spending a six-figure sum on a second home abroad, fractional ownership presents an affordable new option. Management, cleaning and rental is carried out by a local managing agent. Properties are fully furnished to a high standard and regularly upgraded.
Now there’s also a block of 13 weeks in a row during winter, aimed at retired people who wish to spend that time in a much warmer climate.
So, for those who aspire to make their dreams a reality, fractional ownership may just be the answer. It may well redefine the way many British people own abroad.
Bryn Thompson is Managing Director of Spanish Quarters, one of southern Spain’s leading independent home finders. For further information visit www.spanish-quarters.com or call +44 (0)1625 444100.
TREK OR TREAT
THERE’S ALWAYS AN entrepreneur who wants to find an apartment with a difference. How about a flat kitted out to the specifications of the Starship Voyager? Tony Alleyne, a former DJ and consummate Trekkie fan, spent £30,000 souping up his pad to intergalactic proportions with touch-panel blue lighting and banks of twinkling electronic equipment. Originally, Alleyne bought the property in 1994 for £27,000 (did those prices even exist that recently?). It’s now on the market for £500,000. Prices are obviously going to be high on a property with its own teleportation device. For more information, visit www.24thcid.com or call +44 (0)1455 440 627.
Perfect property
PLAN YOUR NEXT move at The Property Investor & Homebuyer Show North (www..propertyinvestor.co.uk) at G-MEX Manchester between 1-3 June. Whether you’re buying your first home or managing a property portfolio – at home or abroad – experts will be on hand to advise you. The 250+ exhibitors include house builders, developers and mortgage specialists.
