Information about fractional ownership schemes
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. Buying fractionals 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. Fractional properties are available at resorts around the world and the number of fractional residences available for ownership is growing as more and more people find this form of holiday home ownership an attractive proposition.
Fractional ownership schemes are sold in anything from quarter to one twelfth shares, with periods of the year being allocated on either a rotational basis or a mixture of fixed and floating periods within a season. Like timeshare, owners get the benefits of a management company to take care of the property. Fractional owners usually have a direct interest in the value of the asset and are likely to benefit from any appreciation in the property value, although this may not always be the case.
Fractional Ownership Schemes
Fractional ownership schemes are extremely successful in the US and the concept is increasing in popularity in Europe – the number of Fractional residences increased from 60 to 90 in 2008/9 and it is anticipated that there will be substantial growth in the number of fractional properties and fractional ownership schemes over the next 5 years.
Read on for more information about fractional ownership with more detailed information about what fractional ownership is and the latest legislation affecting fractional properties.