Applicability of new Timeshare Directive to Fractional Ownership

Applicability of the Directive to Fractionals

Guidance Note issued by FSOTA - August 2010

Introduction

The new ‘Directive’ (2008/122/EC) hereinafter referred to as the 2nd Directive is planned for final implementation across the EU by 23 February 2011. Some countries have implemented the Directive already, notably France, others like the UK have recently issued draft proposals for new laws, and several are consulting interested parties.



Trends in European Fractional Real Estate 2009

NorthCourse Report, April 2009Consumer trends

  • Minimum disposable annual household income €90,000 p.a
  • 49% state their travel patterns will not change over the next 12 months
  • 34% state that fractional ownership would best suit their personal lifestyles (32% state hotels and 34%, rented apartments)
  • 46% are likely to buy a fractional residence

Destinations



What is Fractional Ownership

Fractional ownership enables people to own an interest in a luxury property (often in an exclusive holiday resort or glamorous city centre location) that they might otherwise be unable to afford. It is equally attractive to those who can afford to purchase property outright, but do not have the time to use or maintain it all year round.