Marlborough

Fractional ownership is essentially partial ownership of a property.  Fractional ownership allows several unconnected buyers to collectively share ownership of a specific property that usually forms part of a holiday resort, residential building or private residence club.  With FOC’s fractional model, you will own part of the title and therefore, if the property appreciates in value then so does your share.  As with whole ownership, you can sell whenever you deem it necessary or prudent as you have a real ‘bricks and mortar’ purchase.

Fractional ownership is, arguably, the most progressive way of owning your own holiday home.  This form of ownership has been operating in the USA for over 30 years and many resorts in the European hot spots have been offering fractional property for several years.  Fractional ownership also takes away much of the hassle of outright ownership – by sharing annual expenses as well as giving peace of mind that the property is being professionally managed all year round.

With ten years of shared ownership under our belts, FOC is the most experienced Fractional service provider in Europe and were responsible for creating and structuring the very first European fractional resort.

Because of this, FOC has the most tried and tested fractional system available.  We have an extremely strong track record of success with hundreds of buyers across the world as we offer a watertight package that provides all the protection, clarity and control that you would expect from a world-class market leading fractional system.  Our system is constantly reviewed and improved by our legal advisers to continue to delight buyers with trouble free fractional ownership and peace of mind.

For more information on fractional ownership, please call +(0) 44 1481 747800

Buying a fractional share of a property can be both financially and emotionally rewarding – provided you do your due diligence:

Buy Wise

Focus on quality-property size, use-structure, resort amenities and value-added extras that come with ownership. Project density should also be appropriate for the area.

Ensure that all ‘on costs’-property taxes, insurance, and maintenance are budgeted for and written into the deed of co-ownership contract and that a full property management service is included in your purchase.

Multiple ownership tax issues can be complex so take advice from a specialist lawyer. Buyers should also have contracts checked to ensure clean and legal title, an equitable stake in the property and no restrictions to selling shares on the open market.

Research the market – buying a quarter share of a well-located high-end property can often yield better capital appreciation than an outright purchase in a similar price-bracket.

FOC Finance, a subsidiary of the Fractional Ownership Consultancy, is the only company currently offering finance for fractional purchases. Purchasers usually have to borrow on the equity in their main residence.

Purchase Process

The purchase process can take the form of a limited company set up in which each owner owns a percentage of the shares in the company (more common with five+ owners). Alternately a deed of co-ownership can be set up with individual names placed on the title deed.

An annex document outlines owners’ rights to certain weeks a year based on high/low season distribution.

Maintenance fees vary per resort with a benchmark of between £1,000-£3,000 per property per annum. A contribution to a ‘sinking fund’ to cover incidental expenses is standard. This usually equates to 10 per cent of the annual maintenance fee.

Upkeep of the property is the responsibility of the resort’s elected management company and is written into the deed of co-ownership.

To read the full article http://bit.ly/oAOgkZ and for more information on The Fractional Ownership Consultancy www.fractional.net